There are a few good reasons why it makes ample sense to Register One Person Company in India Online your network. The first basic reason is to guard one’s own interests as an alternative to risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if an additional is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited group. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it’s easier when group is registered.
Very there’s always a dilemma as to when the company 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 the confident properly resounding yes, then it’s time for in order to go ahead and register the startup. And as mentioned earlier on it is always beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the business and when there is want to expand it, your startup can be registered as the many legal formats for this structure of a company available to you.
So i want to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company owned and operated or run by just one individual. No registration it will take. This is the method to be able to if you must do it alone and the goal of establishing the organization is gain a short-term goal. But this puts you prone to losing your entire personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. For a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust concerning the partners. But similar using a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in which the company is often a separate legal entity which effect protects the owner from being personally responsible for any loss.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and an organisation and the partners are not personally prone to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the associated with directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum upper limit of fifty five. The number of directors must be 2.