There are some good good reason that it makes ample sense to Register One Person Company in India Online your network. The first basic reason is to safeguard one’s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and and that is forced to seal down. Secondly, it is much 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 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 group is enrolled.
Very often there is a dilemma as to when the company should be registered. The solution to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to method has . confident and a resounding yes, then then it’s time for one to go ahead and register the international. And as mentioned earlier on it’s usually beneficial to write it as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the actual and how i want to inflate it, your startup can be registered as one of the many legal formats for this structure associated with company on the market.
So allow me to first educate you with needed information. The different company structures available are:
a) Sole Proprietorship. Of the company owned and operated or run by only individual. No registration is needed. This is the method in order to if you wish to do it alone and the goal of establishing business is gain 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 maybe than two individuals. In the event of a Partnership firm, when your laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust in between the partners. But similar the proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in that this company is really a separate legal entity within turn effect protects the owner from being personally responsible for any losses.
d) Limited Liability Partnership (LLP), that the general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company will be of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there isn’t any upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum maximum of 45. The number of directors must be 2.