There are many good reasons why it makes ample sense to Register One Person Company in India Online your specialist. The first basic reason is preserve one’s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces an emergency and which forced to seal down. Secondly, it is much 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 even a limited enterprise. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, 1 wishes to transfer their shares to another it’s easier when group is authorized.
Very often there is a dilemma as to when business should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted to a profitable business or not too. And if the answer to and also confident which has a resounding yes, then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of corporation and like you would want to expand it, your startup can be registered as the many legal formats of the structure associated with company available.
So ok, i’ll first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by just one individual. No registration it takes. This is the method to adopt if you wish to do it on your own and the goal of establishing business is gain a short-term goal. But this puts you subject to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the case of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust in between the partners. But similar together with proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that the company is often a separate legal entity that effect protects the owner from being personally liable for any loss.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally prone to lose their personal power.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the connected with directors should be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 by using a maximum maximum of fifty five. The number of directors must be 2.