There are a few good reasons why it makes ample sense to Register One Person Company in India Online your little. The first basic reason is to guard one’s own interests but not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and and that is forced to shut down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited reputable company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes managed their shares to another it’s easier when company is enrolled.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, when your business idea is good enough to be converted into a profitable business or not. And if the answer to the confident properly resounding yes, then it is time for someone to go ahead and register the startup. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the organization and how i want to expand it, your startup can be registered as one of the many legal formats in the structure on the company available.
So let me first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by one particular individual. No registration becomes necessary. This is the method in order to if you want to do it alone and the objective of establishing business is to attain a short-term goal. But this puts you at risk of losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the case of a Partnership firm, as being laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust within partners. But similar in order to some proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that your company can be a separate legal entity within turn effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners aren’t personally liable to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 with a maximum maximum of 45. The number of directors must be 2.