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 guard one’s own interests and not risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and which forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if an additional is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited firm. (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 the company is recorded.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted to a profitable business or never ever. And if the answer to method has . confident too resounding yes, then it is time for someone to go ahead and register the start-up. And as mentioned earlier on it is always beneficial to do it as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of corporation and when there is want to inflate it, your startup can be registered as among the many legal formats belonging to the structure on the company on the market.
So permit me to first educate you with the mandatory information. The various company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration it takes. This is the method to if you want to do it alone and the goal of establishing firm is to realize a short-term goal. But this puts you at risk to losing your own 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 case of a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust concerning the partners. But similar in order to some proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in which the company is often a separate legal entity that effect protects the owner from being personally accountable for any losses.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a company 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 minimal number of members needed are 7 and there isn’t a upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 with a maximum maximum of corporation. The number of directors must be 2.