There are many good some reasons why it makes ample sense to Register One Person Company in India Online your company. The first basic reason is to guard one’s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces an emergency and and that is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if the company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited firm. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it’s easier when an additional is subscribed.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to the confident which has a resounding yes, then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of corporation and when there is want to inflate it, your startup could be registered as the many legal formats with the structure of the company open to you.
So i want to 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 just one individual. No registration is actually required. This is the method to adopt if you should do it for yourself and the purpose of establishing the company is to attain a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. For a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust in between the partners. But similar the proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in how the company is a separate legal entity which in effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and an organisation 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’s no upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 having a maximum maximum of corporation. The number of directors must be 2.