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 to guard one’s own interests by no means risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited reputable company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if one wishes managed their shares to another it’s easier when an additional is authorized.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, in case business idea is sufficiently good to be converted to a profitable business or not. And if the answer to the confident and also resounding yes, then it’s time for someone to go ahead and register the investment. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to inflate it, your startup can be registered as among the many legal formats in the structure associated with company available to you.
So let me first fill you in with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only individual. No registration it takes. This is the method to if you want to do it for yourself and the reason for establishing the organization is to realize 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 even more than two individuals. In the a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust concerning the partners. But similar in order to some proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that your company is a separate legal entity within turn effect protects the owner from being personally liable for any cutbacks.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 with a maximum upper limit of 150. The number of directors must be 2.