There are several good main reasons why it makes ample sense to Register One Person Company in India Online your company. The first basic reason is to guard one’s own interests and is not risk personal assets to the aim of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if firm is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or maybe limited reputable company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, 1 wishes managed their shares to another it’s easier when group is enrolled.
Very almost always there is a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not. And if the answer to and also confident too resounding yes, then it’s time for in order to go ahead and register the investment. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the business and a method to want to flourish it, your startup could be registered as one of the many legal formats for this structure of a company on the market.
So allow me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by just one individual. No registration is needed. This is the method to adopt if you wish to do it alone and the objective of establishing firm is obtain 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 or more than two individuals. In the case of a Partnership firm, as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust regarding the partners. But similar using a proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a Person Company in that the company is a separate legal entity that effect protects the owner from being personally liable for any cutbacks.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally liable to lose their personal wide range.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the connected with directors end up being at least 3 and
ii) Private Limited Company where minimal number of needed are 7 by using a maximum maximum of 45. The number of directors must be 2.