There are many good some reasons why it makes ample sense to Register One Person Company in India Online your tiny. The first basic reason is to guard one’s own interests as an alternative to risk personal assets to the point of facing bankruptcy in case your business faces a crisis and is forced to seal down. Secondly, it is simpler to attract VC funding as VCs are assured of protection if this company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited reputable company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if wishes managed their shares to another it’s easier when group is subscribed.
Very there’s always a dilemma as to when business should be registered. The solution to which is, primarily, as well as business idea is sufficiently good to be converted to a profitable business or not. And if the answer to that is a confident too resounding yes, then then it’s time for one to go ahead and register the start-up. And as mentioned earlier on it is always beneficial to create it happen as a preventive measure, before you are saddled with liabilities.
Depending upon the size and type of enterprise enterprise and when there is want to grow 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 different company structures available are:
a) Sole Proprietorship. That’s a company managed or run by one particular individual. No registration is actually required. This is the method to adopt if you wish to do it on your own and the goal of establishing vehicle is to attain a short-term goal. But this puts you at risk 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 a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it requires a associated with trust regarding the partners. But similar the proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in that your company is a separate legal entity which effect protects the owner from being personally accountable for any loss.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners are not personally liable to lose their personal holdings.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s really no upper limit; the regarding directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 by using a maximum upper limit of 45. The number of directors must be 2.