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 preserve one’s own interests but not risk personal assets 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 this company is disclosed. 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, any time a limited company, if wishes managed their shares to another it’s easier when an additional is authorized.
Very often there is a dilemma as to when organization should be registered. The answer to which is, primarily, when the business idea is sufficiently good to be converted into a profitable business or not. And if the answer to that is a confident and a resounding yes, then it’s time for someone to go ahead and register the international. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before important work saddled with liabilities.
Depending upon the size and type of the organization and the way you want to inflate it, your startup can be registered as the many legal formats of the structure associated with company available to you.
So permit me to first educate you with necessary information. The different company structures available are:
a) Sole Proprietorship. That’s a company owned and operated or run by only 1 individual. No registration it will take. This is the method to be able to if you want to do it alone and the objective of establishing firm is obtain 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 even more than two individuals. In the case of a Partnership firm, just as the laws aren’t as stringent as that involving Ltd. Company, (limited company) it relates to a regarding trust regarding the partners. But similar together with proprietorship thankfully risk of losing personal assets in any eventuality.
c) OPC is single Person Company in that the company is really a separate legal entity that effect protects the owner from being personally responsible for any damages.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a supplier and the partners aren’t personally prone to lose their personal wide range.
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 folks that needed are 7 along with a maximum upper limit of 150. The number of directors must be 2.