There are a few good good reason that it makes ample sense to Register One Person Company in India Online your network. The first basic reason is to safeguard one’s own interests and is not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a 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 group is recorded.
Very there’s always a dilemma as to when the corporate should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to that is a confident too resounding yes, then it’s time for someone to go ahead and register the new. And as mentioned earlier on it’s always beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the organization and the way you want to expand it, your startup could be registered as among the many legal formats in the structure of a company available.
So ok, i’ll first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by one particular individual. No registration is actually required. This is the method to if you want to do it all by yourself and the purpose of establishing the company is to realize 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. In the a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust regarding the partners. But similar the proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in that the company is often a separate legal entity which in effect protects the owner from being personally subject to any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally liable to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the connected with directors must be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 by using a maximum upper limit of 150. The number of directors must be 2.