There are a few good some reasons why it makes ample sense to Register One Person Company in India Online your tiny. The first basic reason is to protect one's own interests and is not risk personal assets to the purpose of facing bankruptcy in case your business faces a crisis and is also forced to shut down. Secondly, it is much easier to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP potentially a limited company. (These are terms which have been described later on). Another valid reason is, any time a limited company, 1 wishes to transfer their shares to another it's easier when enterprise is enrolled.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, when your business idea is good enough to be converted into a profitable business or truly. And if the answer to that is a confident and also resounding yes, then it's the perfect time for someone to go ahead and register the investment. And as mentioned earlier on it will be beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the organization and the way you want to grow it, your startup could be registered as the many legal formats with the structure on the company accessible to you.
So ok, i'll first fill you in with the required information. The various company structures available are:
a) Sole Proprietorship. It is a company owned and operated or run by 1 individual. No registration is actually required. This is the method to adopt if you should do it alone and the goal of establishing the organization is to attain a short-term goal. But this puts you at risk of losing complete personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the a Partnership firm, as being laws are not as stringent as that involving Ltd. Company, (limited company) it requires a involving trust within partners. But similar together with proprietorship thankfully risk of losing personal belongings in any eventuality.
c) OPC is a one Person Company in that this company is really a separate legal entity which usually effect protects the owner from being personally subject to any losses.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the very best of partnership firm and an organisation and the partners are not personally liable to lose their personal holdings.
e) Limited Company is actually 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 end up being at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 along with a maximum maximum of 50. The number of directors must be 2.