There are a few good the actual reason why it makes ample sense to Register One Person Company in India Online your specialist. The first basic reason is preserve one’s own interests and is not risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and is also forced to close down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if an additional is registered. 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, any time a limited company, 1 wishes managed their shares to another it’s easier when company is registered.
Very there’s always a dilemma as to when business should be registered. The solution to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident properly resounding yes, then it’s the perfect time for someone to go ahead and register the new. And as mentioned earlier on it is often beneficial to make it work as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of the actual and like you would want to expand it, your startup can be registered among the many legal formats in the structure on the company available to you.
So allow me to first educate you with needed information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by only individual. No registration is needed. This is the method to adopt if you should do it yourself and the goal of establishing the organization is to realize a short-term goal. But this puts you subject to losing your own 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 are not as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust in between the partners. But similar using a proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in that your company is often a separate legal entity within turn 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 very best of partnership firm and a company and the partners are not personally prone to lose their personal power.
e) Limited Company is actually of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there’s really no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 along with a maximum upper limit of 45. The number of directors must be 2.