There are many good some 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 aim of facing bankruptcy in case your business faces an emergency and and that is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited firm. (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 authorized.
Very often there is a dilemma as to when organization should be registered. The answer to which is, primarily, if your business idea is good enough to be converted into a profitable business or not. And if the answer to that is a confident too resounding yes, then then it’s time for someone to go ahead and register the new. And as mentioned earlier on it’s always beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the actual and how i want to inflate it, your startup can be registered as the many legal formats for this structure in a company open to you.
So i want to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration it takes. This is the method to adopt if you want to do it yourself and the objective of establishing the organization is gain a short-term goal. But this puts you subject to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. In the case of a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust within partners. But similar to a proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that the company is a separate legal entity which effect protects the owner from being personally subject to any obligations.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally liable to lose their personal power.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 along with a maximum upper limit of 50. The number of directors must be 2.