There are some good main reasons why it makes ample sense to Register One Person Company in India Online your little. The first basic reason is preserve one’s own interests and is not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if organization is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited group. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes to transfer their shares to another it’s easier when enterprise is registered.
Very often there is a dilemma as to when the company 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 too. And if the answer to the confident too resounding yes, then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it will be beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of corporation and when there is want to grow it, your startup could be registered as the many legal formats in the structure of the company accessible to you.
So allow me to first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by only 1 individual. No registration becomes necessary. This is the method in order to if you wish to do it yourself and the reason for establishing the organization is to achieve a short-term goal. But this puts you prone to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the event of a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust in between the partners. But similar to a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is single Person Company in which the company is really a separate legal entity which usually effect protects the owner from being personally to blame for any obligations.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a supplier and the partners aren’t personally liable to lose their personal wealth.
e) Limited Company will be 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 must be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum maximum of 45. The number of directors must be 2.