There are a few good main reasons why it makes ample sense to Register One Person Company in India Online your little. The first basic reason is to protect one’s own interests but not risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and also is forced to seal down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited reputable company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes to transfer their shares to another it’s easier when company is authorized.
Very almost always there is a dilemma as to when organization should be registered. The solution to which is, primarily, in case business idea is good enough to be converted to a profitable business or not too. And if the answer to that is a confident and also resounding yes, then it’s the perfect time for someone to go ahead and register the startup. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of enterprise enterprise and a method to want to be expanded it, your startup can be registered among the many legal formats in the structure of the company accessible to you.
So ok, i’ll first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only 1 individual. No registration it will take. This is the method to if for you to do it yourself and the purpose 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 case of a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust regarding the partners. But similar the proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in that your company is often a separate legal entity which effect protects the owner from being personally liable for any losses.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the quantity of directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 along with a maximum maximum of fifty five. The number of directors must be 2.
