There are a few good good reason that it makes ample sense to Register One Person Company in India Online your tiny. The first basic reason is to protect one’s own interests by no means risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and also is forced to close down. Secondly, it is much simpler to attract VC funding as VCs are assured of protection if this company is subscribed. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited enterprise. (These are terms which have been described later on). Another valid reason is, from a limited company, if one wishes managed their shares to another it’s easier when an additional is subscribed.
Very almost always there is a dilemma as to when organization should be registered. The answer to which is, primarily, if your business idea is good enough to be converted to a profitable business or not. And if the answer to the confident and also resounding yes, then it’s the perfect time for someone to go ahead and register the international. And as mentioned earlier on it is always beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of corporation and how i want to be expanded it, your startup could be registered as the many legal formats with the structure of the company open to you.
So allow me to first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by 1 individual. No registration it will take. This is the method to if you wish to do it on your own and the reason for establishing the company is obtain a short-term goal. But this puts you at risk of losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or even more than two individuals. You should a Partnership firm, as laws aren’t as stringent as that involving Ltd. Company, (limited company) it requires a lot of trust regarding the partners. But similar the proprietorship there could risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in how the company is really a separate legal entity which in effect protects the owner from being personally accountable 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 wealthiness.
e) Limited Company that’s 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 people needed are 7 with a maximum upper limit of corporation. The number of directors must be 2.