There are a couple of good good reason that it makes ample sense to Register One Person Company in India Online your company. The first basic reason is preserve one’s own interests but not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited reputable company. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is enrolled.
Very almost always there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to that is a confident properly resounding yes, then then it’s time for someone to go ahead and register the start-up. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the actual and like you would want to inflate it, your startup can be registered among the many legal formats of the structure of a company available to you.
So ok, i’ll first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by one particular individual. No registration is needed. This is the method to adopt if you want to do it for yourself and the goal of establishing vehicle is to realize a short-term goal. But this puts you at risk 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. You should a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust within partners. But similar together with proprietorship answer to your problem risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in how the company is really a separate legal entity which in effect protects the owner from being personally to blame for any cutbacks.
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 wealthiness.
e) Limited Company that’s 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 end up being at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 with a maximum maximum of 45. The number of directors must be 2.