There are many good reasons why it makes ample sense to Register One Person Company in India Online your network. The first basic reason is preserve one’s own interests by no means risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if this company is disclosed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a 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 the company is enrolled.
Very often there is a dilemma as to when a lot more claims should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident which has a resounding yes, then it’s the perfect time for in order to go ahead and register the startup. 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 size and type of corporation and when there is want to expand it, your startup could be registered among the many legal formats for this structure associated with company open to you.
So ok, i’ll first educate you with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by 1 individual. No registration it will take. This is the method to if for you to do it alone and the reason for establishing the company is obtain a short-term goal. But this puts you at risk 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 a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust in between the partners. But similar in order to some proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that the company is a separate legal entity within turn effect protects the owner from being personally to blame for any obligations.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 along with a maximum upper limit of 45. The number of directors must be 2.