There are several good good reason that it makes ample sense to Register One Person Company in India Online your tiny. The first basic reason is to safeguard one’s own interests as an alternative to risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is also forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if the company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, if wishes managed their shares to another it’s easier when company is enrolled.
Very there’s always a dilemma as to when the company should be registered. The answer to which is, primarily, when the business idea is good enough to be converted into a profitable business or never ever. And if the answer to and also confident and a resounding yes, then it’s the perfect time for in order to go ahead and register the investment. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of enterprise enterprise and how i want to inflate it, your startup could be registered as one of the many legal formats with the structure on the company on the market.
So i want to first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by one particular individual. No registration it takes. This is the method to be able to if you should do it alone and the purpose of establishing firm is obtain a short-term goal. But this puts you prone to losing complete 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 event of a Partnership firm, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust within partners. But similar to a proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in that the company is really a separate legal entity which in effect protects the owner from being personally accountable for any obligations.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally liable to lose their personal wealthiness.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum maximum of fifty five. The number of directors must be 2.