There are many good the actual reason why it makes ample sense to Register One Person Company in India Online your network. The first basic reason is guard one’s own interests and not risk personal assets to the purpose of facing bankruptcy in case your business faces an emergency and also is forced to seal down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if this company is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited group. (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 an additional is authorized.
Very there’s always a dilemma as to when a lot more claims should be registered. The answer to which is, primarily, when your business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to and also confident and also resounding yes, then it is time for in order to go ahead and register the start-up. 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 the business and the way you want to flourish it, your startup could be registered as one of the many legal formats in the structure of the company accessible to you.
So let me first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. Of your company managed or run by only individual. No registration it will take. This is the method to adopt if you want to do it on your own and the objective of establishing vehicle is gain a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more 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 involving trust concerning the partners. But similar to a proprietorship you will find a risk of losing personal belongings in any eventuality.
c) OPC is single Person Company in how the company is often a separate legal entity within turn effect protects the owner from being personally to blame for any loss.
d) Limited Liability Partnership (LLP), whereas 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 wealthiness.
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 connected with directors end up being at least 3 and
ii) Private Limited Company where the minimum number of needed are 7 having a maximum maximum of fifty five. The number of directors must be 2.