There are some good main reasons why it makes ample sense to Register One Person Company in India Online your specialist. The first basic reason is guard one’s own interests and not risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and which forced to seal down. Secondly, it is 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 or maybe limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes to transfer their shares to another it’s easier when enterprise is registered.
Very there’s always a dilemma as to when the company 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 not too. And if the answer to and also confident too resounding yes, then then it’s time for someone to go ahead and register the startup. And as mentioned earlier on it is often beneficial to write it as a preventive measure, before damaging saddled with liabilities.
Depending upon the type and size of the business and how i want to be expanded it, your startup could be registered as the many legal formats for this structure of a company available to you.
So ok, i’ll first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration becomes necessary. This is the method to if for you to do it for yourself and the reason for establishing business is to achieve a short-term goal. But this puts you subject to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a regarding trust between the partners. But similar together with proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in how the company is really a separate legal entity which effect protects the owner from being personally liable for any cutbacks.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a corporation and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the regarding directors should be at least 3 and
ii) Private Limited Company where minimal number of folks that needed are 7 along with a maximum maximum of fifty five. The number of directors must be 2.