There are some good good reason that 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 but not risk personal belongings to the aim of facing bankruptcy in case your business faces a crisis and is forced to shut down. Secondly, it is a lot easier to attract VC funding as VCs are assured of protection if the company is subscribed. 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 wishes managed their shares to another it's easier when group is subscribed.
Very there's always a dilemma as to when organization should be registered. The solution to which is, primarily, as well as business idea is good enough to be converted into a profitable business or not. And if the answer to the confident which has a resounding yes, then it's time for someone to go ahead and register the investment. And as mentioned earlier on it's always beneficial to make it work as a preventive measure, before you could be saddled with liabilities.
Depending upon the size and type of the business and when there is want to flourish it, your startup could be registered as one of the many legal formats with the structure of a company available to you.
So let me first fill you in with the mandatory information. The different company structures available are:
a) Sole Proprietorship. It is a company managed or run by only 1 individual. No registration it will take. This is the method to be able to if you wish to do it yourself and the goal of establishing the company is to achieve a short-term goal. But this puts you liable to losing your own personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. You should a Partnership firm, as laws are not as stringent as that involving Ltd. Company, (limited company) it relates to a involving trust within partners. But similar together with proprietorship there could risk of losing personal assets in any eventuality.
c) OPC is a 60 minute Person Company in how the company is often a separate legal entity which usually effect protects the owner from being personally to blame for any loss.
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 power.
e) Limited Company will be of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there is no upper limit; the quantity of directors must be at least 3 and
ii) Private Limited Company where minimal number folks needed are 7 having a maximum upper limit of fifty five. The number of directors must be 2.