There are a few good main reasons why it makes ample sense to Register One Person Company in India Online your company. The first basic reason is guard one’s own interests and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if firm is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes to transfer their shares to another it’s easier when group is enrolled.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to the confident properly resounding yes, then it’s the perfect time for one to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the actual and the way you want to flourish it, your startup can be registered as the many legal formats in the structure on the company open to you.
So permit me to first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. Of the company managed or run by only individual. No registration it takes. This is the method to if you want to do it yourself and the goal of establishing the organization is obtain a short-term goal. But this puts you subject to losing your own 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 a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust concerning the 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 the company is really a separate legal entity within turn effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the connected with directors end up being 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.