There are a few good the actual reason why it makes ample sense to Register One Person Company in India Online your little. The first basic reason is to safeguard one’s own interests and not risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and is also forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if organization is opted. 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, from a limited company, if one wishes managed their shares to another it’s easier when company is authorized.
Very there’s always a dilemma as to when organization should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or not. And if the answer to and also confident too resounding yes, then it is time for someone to go ahead and register the startup. And as mentioned earlier on it is often beneficial to create it happen as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of corporation and how i want to flourish it, your startup can be registered as the many legal formats in the structure on the company available to you.
So i want to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only 1 individual. No registration is actually required. This is the method to adopt if you must do it alone and the objective of establishing vehicle is obtain a short-term goal. But this puts you at risk of losing all your 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 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 in order to some proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in that the company is often a separate legal entity within turn effect protects the owner from being personally accountable for any cutbacks.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 with a maximum upper limit of fifty five. The number of directors must be 2.