There are several good good reason that 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 belongings to the aim of facing bankruptcy in case your business faces a crisis and which forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if organization is registered. 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, just in case a limited company, 1 wishes managed their shares to another it’s easier when company is enrolled.
Very there’s always a dilemma as to when organization should be registered. The solution to which is, primarily, when the business idea is good enough to be converted to a profitable business or not. And if the answer to that is a confident properly resounding yes, then it is time for someone to go ahead and register the international. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of corporation and a method to want to inflate it, your startup could be registered among the many legal formats of the structure on the company open to you.
So allow me to first fill you in with the mandatory information. The various company structures available are:
a) Sole Proprietorship. It is a company managed or run by one particular individual. No registration it will take. This is the method to adopt if you want to do it yourself and the objective of establishing business is gain a short-term goal. But this puts you liable to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or maybe than two individuals. You should a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust in between the partners. But similar the proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that this company is often 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 very best of partnership firm and a corporation and the partners aren’t personally prone to lose their personal wide range.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t a upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where the minimum number folks needed are 7 with a maximum maximum of 50. The number of directors must be 2.