There are a couple of good some reasons why it makes ample sense to Register One Person Company in India Online your specialist. The first basic reason is to guard one’s own interests and not 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 easier to attract VC funding as VCs are assured of protection if the company is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited reputable 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 enterprise is recorded.
Very there’s always a dilemma as to when the corporate should be registered. The solution to which is, primarily, when the business idea is good enough to be converted to a profitable business or never ever. And if the answer to method has . confident too resounding yes, then then it’s time for someone to go ahead and register the startup. And as mentioned earlier on it will be beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of enterprise enterprise and like you would want to expand it, your startup can be registered as among the many legal formats belonging to the structure of the company available to you.
So i want to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Of your company owned and operated or run by one particular individual. No registration it takes. This is the method to adopt if you wish to do it yourself and the reason for establishing firm is gain a short-term goal. But this puts you subject to losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two a lot more than two individuals. For a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a associated with trust concerning the partners. But similar together with proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in that the company is a separate legal entity which effect protects the owner from being personally to blame for any damages.
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 power.
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 regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number of folks that needed are 7 by using a maximum upper limit of 45. The number of directors must be 2.