There are a couple of good some reasons why it makes ample sense to Register One Person Company in India Online your tiny. The first basic reason is guard one's own interests as an alternative to risk personal belongings to the point of facing bankruptcy in case your business faces an emergency and is forced to close down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if organization is accredited. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited company. (These are terms which have been described later on). Another valid reason is, just in case a limited company, if one wishes to transfer their shares to another it's easier when group is recorded.
Very there's always a dilemma as to when business should be registered. The answer to which is, primarily, when the business idea is good enough to be converted to a profitable business or truly. And if the answer to the confident and a resounding yes, then it's the perfect time for one to go ahead and register the startup. And as mentioned earlier on it is often beneficial find a quote as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the organization and how i want to grow it, your startup can be registered as among the many legal formats belonging to the structure associated with company open to you.
So permit me to first educate you with the required information. The various company structures available are:
a) Sole Proprietorship. That's a company owned and operated or run by 1 individual. No registration becomes necessary. This is the method to be able to if you should do it for yourself and the objective of establishing the organization is to realize a short-term goal. But this puts you at risk of losing every 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, as laws aren't as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust between the partners. But similar the proprietorship you will find a risk of losing personal assets in any eventuality.
c) OPC is a single Person Company in that your company is really a separate legal entity within turn effect protects the owner from being personally accountable for any obligations.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and a company and the partners are not personally liable to lose their personal power.
e) Limited Company will be 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 people needed are 7 by using a maximum maximum of 45. The number of directors must be 2.