There are some good some reasons why it makes ample sense to Register One Person Company in India Online your specialist. The first basic reason is guard one’s own interests and is not risk personal belongings to the purpose of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is disclosed. 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, in case of a limited company, if wishes to transfer their shares to another it’s easier when the company is subscribed.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or not solely. And if the answer to the confident and a resounding yes, then then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the business and the way you want to inflate it, your startup could be registered as one of the many legal formats of the structure on the company on the market.
So ok, i’ll first educate you with necessary information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by 1 individual. No registration it will take. This is the method to adopt if for you to do it alone and the goal of establishing the company is gain a short-term goal. But this puts you prone to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust within partners. But similar the proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that this company is often a separate legal entity within turn effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company that of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 by using a maximum maximum of 150. The number of directors must be 2.