There are a couple of good good reason that it makes ample sense to Register One Person Company in India Online your network. The first basic reason is to protect one’s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is 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 even a limited reputable company. (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 the company is registered.
Very almost always there is a dilemma as to when the corporate should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or truly. And if the answer to and also confident which has a resounding yes, then it’s time for in order to go ahead and register the startup. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the actual and when there is want to grow it, your startup could be registered as the many legal formats in the structure in a company open to you.
So permit me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by one particular individual. No registration is actually required. This is the method to be able to if you want to do it all by yourself and the reason for establishing business is gain a short-term goal. But this puts you subject to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it demands a involving trust regarding the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in which the company is often a separate legal entity which in effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company that’s of 2 types,
i) Public Limited Company where minimal 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 the minimum number persons needed are 7 using a maximum upper limit of fifty five. The number of directors must be 2.