There are several good reasons 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 is 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 a lot easier to attract VC funding as VCs are assured of protection if firm is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if one wishes to transfer their shares to another it’s easier when the company is recorded.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted to a profitable business or not solely. And if the answer to that is a confident which has a resounding yes, then it’s the perfect time for in order to go ahead and register the investment. And as mentioned earlier on it is always beneficial to write it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the business and a method to want to expand it, your startup can be registered as among the many legal formats with the structure associated with company accessible to you.
So ok, i’ll first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by only 1 individual. No registration it will take. This is the method to if you wish to do it yourself and the goal of establishing the organization is gain a short-term goal. But this puts you liable 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 being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust concerning the partners. But similar together with proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in how the company is really a separate legal entity which effect protects the owner from being personally subject to any damages.
d) Limited Liability Partnership (LLP), from where the 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 which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 having a maximum upper limit of fifty five. The number of directors must be 2.