There are some good the actual reason why it makes ample sense to Register One Person Company in India Online your specialist. The first basic reason is to safeguard one’s own interests but not risk personal belongings to the aim of facing bankruptcy in case your business faces an emergency and is forced to shut down. Secondly, it is a lot 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 a limited firm. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if wishes to transfer their shares to another it’s easier when the company is registered.
Very often there is a dilemma as to when organization should be registered. The answer to which is, primarily, in case business idea is sufficiently good to be converted into a profitable business or not. And if the answer to method has . confident which has a resounding yes, then it is time for someone to go ahead and register the startup. And as mentioned earlier on it’s always beneficial to make it work as a preventive measure, before important work saddled with liabilities.
Depending upon the type and size of the organization and the way you want to flourish it, your startup can be registered as the many legal formats of the structure associated with company available.
So allow me 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 only individual. No registration it takes. This is the method to be able to if you wish to do it yourself and the reason for establishing the organization is gain a short-term goal. But this puts you at risk to losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or higher than two individuals. In the a Partnership firm, just as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a regarding trust in between the partners. But similar together with proprietorship answer to your problem risk of losing personal assets in any eventuality.
c) OPC is a one Person Company in how the company can be a separate legal entity which effect protects the owner from being personally accountable for any damages.
d) Limited Liability Partnership (LLP), from where the general partners have limited liability. LLP combines the best of partnership firm and a supplier 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 minimal number of members needed are 7 and there isn’t any upper limit; the regarding directors must be at least 3 and
ii) Private Limited Company where the minimum number persons needed are 7 by using a maximum maximum of 45. The number of directors must be 2.