There are several good good reason that 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 but not risk personal assets to the stage that facing bankruptcy in case your business faces an emergency and and that is forced to seal down. Secondly, it is much simpler 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 potentially a limited company. (These are terms which have been described later on). Another valid reason is, in the eventuality of a limited company, if wishes managed their shares to another it’s easier when the company is authorized.
Very often there is 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 to a profitable business or never ever. And if the answer to that is a confident and also resounding yes, then it is time for someone to go ahead and register the investment. And as mentioned earlier on it will be beneficial to write it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the business and when there is want to flourish it, your startup could be registered as one of the many legal formats in the structure on the company available.
So ok, i’ll first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. Of your company managed or run by only individual. No registration it takes. This is the method to adopt if you wish to do it all by yourself and the reason for establishing firm is gain a short-term goal. But this puts you at risk to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. In the a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust between the partners. But similar to a proprietorship there is a risk of losing personal belongings in any eventuality.
c) OPC is a single Person Company in that the company can be a separate legal entity which effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the very best of partnership firm and a business and the partners aren’t personally liable to lose their personal power.
e) Limited Company which is 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 folks needed are 7 with a maximum upper limit of 45. The number of directors must be 2.