There are several good good reason that it makes ample sense to Register One Person Company in India Online your network. The first basic reason is to protect one’s own interests by no means risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if organization is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes to transfer 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, if your business idea is good enough to be converted to a profitable business or not too. And if the answer to that is a confident too resounding yes, then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before you will be saddled with liabilities.
Depending upon the type and size of the actual and how i want to expand it, your startup can be registered among the many legal formats for this structure on the company accessible to you.
So permit me to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by only 1 individual. No registration it takes. This is the method in order to if you should do it for yourself and the reason for establishing firm is to achieve a short-term goal. But this puts you subject to 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 event of a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust within partners. But similar to a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that this company is often a separate legal entity which effect protects the owner from being personally responsible for any obligations.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners are not personally prone to lose their personal power.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 using a maximum upper limit of corporation. The number of directors must be 2.