There are some good main reasons why it makes ample sense to Register One Person Company in India Online your little. The first basic reason is preserve one’s own interests as an alternative to risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and and that is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (These are terms which have been described later on). Another valid reason is, from a limited company, if one wishes managed their shares to another it’s easier when company is subscribed.
Very there’s always a dilemma as to when the company should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or never ever. And if the answer to that is a confident and a resounding yes, then it is time for one to go ahead and register the new. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before you will be saddled with liabilities.
Depending upon the size and type of corporation and how i want to grow it, your startup can be registered as one of the many legal formats with the structure associated with company on the market.
So allow me to first fill you in with needed information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by 1 individual. No registration it will take. This is the method in order to if you wish to do it all by yourself and the goal of establishing firm is to attain a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the event of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a involving trust between the partners. But similar using a proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that the company is really a separate legal entity which effect protects the owner from being personally to blame for any damages.
d) Limited Liability Partnership (LLP), from where the 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 wealth.
e) Limited Company that’s of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 having a maximum upper limit of fifty five. The number of directors must be 2.