There are a few good good reason that it makes ample sense to Register One Person Company in India Online your network. The first basic reason is preserve one’s own interests and not risk personal belongings to the purpose of facing bankruptcy in case your business faces an emergency and is forced to seal down. Secondly, it is much simpler 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 a limited reputable 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 an additional is subscribed.
Very often there is a dilemma as to when organization should be registered. The solution to which is, primarily, when the business idea is good enough to be converted to a profitable business or never ever. And if the answer to that is a confident properly resounding yes, then it’s the perfect time for in order to go ahead and register the investment. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the actual and the way you want to be expanded it, your startup could be registered as one of the many legal formats in the structure in a company open to you.
So permit me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by just one individual. No registration it takes. This is the method to if you must do it all by yourself and the reason for establishing the company is to attain a short-term goal. But this puts you at risk to losing your own 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 case of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust in between the partners. But similar the proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in that the company is often a separate legal entity which in effect protects the owner from being personally responsible for any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners aren’t personally liable to lose their personal power.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s no upper limit; the quantity of 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 150. The number of directors must be 2.