There are several good good reason that 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 assets to the stage that facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if the company 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, from a limited company, if wishes to transfer their shares to another it’s easier when enterprise is subscribed.
Very often there is a dilemma as to when the corporate should be registered. The answer to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or never ever. And if the answer to that is a confident and also resounding yes, then it’s the perfect time for in order to go ahead and register the new. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to be expanded it, your startup could be registered among the many legal formats with the structure of the company on the market.
So let me first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of the company managed or run by only 1 individual. No registration it will take. This is the method to be able to if you want to do it for yourself and the reason for establishing the organization is to achieve a short-term goal. But this puts you prone to losing every 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, as laws are not as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust within partners. But similar the proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that this company is really a separate legal entity which in effect protects the owner from being personally to blame for any loss.
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 liable to lose their personal wealth.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the associated with directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 using a maximum upper limit of fifty five. The number of directors must be 2.