There are a few good some reasons 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 as an alternative to risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and which forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it’s easier when company is recorded.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, as well as business idea is sufficiently good to be converted into a profitable business or truly. And if the answer to method has . confident properly resounding yes, then it is time for in order to go ahead and register the start-up. And as mentioned earlier on it’s always beneficial to create it happen as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of corporation and when there is want to be expanded it, your startup could be registered as the many legal formats belonging to the structure in a company available.
So let me first fill you in with needed information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by 1 individual. No registration is needed. This is the method to adopt if for you to do it on your own and the reason for establishing firm is to achieve a short-term goal. But this puts you at risk to losing every 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, when your laws aren’t as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust concerning the partners. But similar to a proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in how the company is often a separate legal entity which usually effect protects the owner from being personally liable for any obligations.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners aren’t personally liable to lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn’t a upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 by using a maximum maximum of 50. The number of directors must be 2.