There are a few good some reasons why it makes ample sense to Register One Person Company in India Online your network. The first basic reason is to protect one’s own interests and is not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and also is forced to close down. Secondly, it is easier to attract VC funding as VCs are assured of protection if firm is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or even a limited firm. (These are terms which have been described later on). Another valid reason is, from a limited company, if wishes managed their shares to another it’s easier when company is enrolled.
Very almost always there is a dilemma as to when a lot more claims 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 not solely. And if the answer to method has . confident too resounding yes, then then it’s time for in order to go ahead and register the start-up. And as mentioned earlier on it’s usually beneficial to make it work as a preventive measure, before damaging saddled with liabilities.
Depending upon the size and type of the actual and like you would want to inflate it, your startup can be registered as the many legal formats belonging to the structure of a company open to you.
So let me first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. Would you company managed or run by only individual. No registration it takes. This is the method to be able to if you want to do it alone and the purpose of establishing the organization is gain a short-term goal. But this puts you liable to 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. For a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust between the partners. But similar the proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a 60 minute Person Company in which the company is a separate legal entity that effect protects the owner from being personally responsible for any cutbacks.
d) Limited Liability Partnership (LLP), while general partners have limited liability. LLP combines the best of partnership firm and a business and the partners are not personally prone to lose their personal wealthiness.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there’s no upper limit; the number of directors should be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 along with a maximum maximum of 45. The number of directors must be 2.