There are many good the actual reason why it makes ample sense to Register One Person Company in India Online your company. The first basic reason is to safeguard one’s own interests and not risk personal assets to the stage that facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is simpler 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 potentially a limited 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 group is authorized.
Very almost always there is a dilemma as to when the company should be registered. The answer to which is, primarily, in case business idea is good enough to be converted into a profitable business or truly. And if the answer to that is a confident and also resounding yes, then it’s time for one to go ahead and register the startup. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of corporation and a method to want to grow it, your startup can be registered among the many legal formats of the structure on the company open to you.
So permit me to first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by 1 individual. No registration it takes. This is the method to adopt if you want to do it all by yourself and the goal of establishing business is to realize a short-term goal. But this puts you subject to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the event of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust regarding the partners. But similar the proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in which the company can be a separate legal entity which usually effect protects the owner from being personally accountable for any cutbacks.
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 are not personally prone to lose their personal power.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where minimal number persons needed are 7 by using a maximum upper limit of 150. The number of directors must be 2.