There are some good reasons why it makes ample sense to Register One Person Company in India Online your tiny. The first basic reason is guard one’s own interests but not risk personal belongings to the stage that facing bankruptcy in case your business faces a crisis and which forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited enterprise. (These are terms which have been described later on). Another valid reason is, from a limited company, 1 wishes to transfer their shares to another it’s easier when an additional is subscribed.
Very often there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, if your business idea is good enough to be converted into a profitable business or never ever. And if the answer to that is a confident and a resounding yes, then it is time for someone to go ahead and register the new. And as mentioned earlier on it’s usually beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the business and how i want to inflate it, your startup could be registered as one of the many legal formats in the structure of a company on the market.
So allow me to first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by only 1 individual. No registration it takes. This is the method to adopt if for you to do it on your own and the objective of 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 higher than two individuals. In the event of a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust regarding the partners. But similar the proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in how the company is really a separate legal entity which usually effect protects the owner from being personally liable for any losses.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a business and the partners aren’t personally prone to lose their personal wealthiness.
e) Limited Company is actually 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 end up being at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 by using a maximum upper limit of corporation. The number of directors must be 2.