There are many good main 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 but not risk personal belongings to the point of facing bankruptcy in case your business faces a crisis and also is forced to seal down. Secondly, it is easier to attract VC funding as VCs are assured of protection if organization is opted. It provides tax benefits to the entrepreneur typically in a partnership, an LLP and even limited group. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes managed their shares to another it's easier when group is recorded.
Very almost always there is a dilemma as to when the company should be registered. The solution to which is, primarily, if your business idea is sufficiently good to be converted into a profitable business or not too. And if the answer to that is a confident and also resounding yes, then it's time for one to go ahead and register the new. And as mentioned earlier on it is often beneficial to do it as a preventive measure, before you are saddled with liabilities.
Depending upon the type and size of the organization and when there is want to grow it, your startup can be registered as the many legal formats of the structure of the 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 individual. No registration becomes necessary. This is the method to be able to if you want to do it for yourself and the purpose of establishing vehicle is to attain a short-term goal. But this puts you subject to losing every personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. For a Partnership firm, as laws aren't as stringent as that involving Ltd. Company, (limited company) it relates to a associated with trust regarding the 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 that the company can be a separate legal entity which in effect protects the owner from being personally responsible for any loss.
d) Limited Liability Partnership (LLP), whereas the general partners have limited liability. LLP combines the best of partnership firm and a corporation and the partners aren't personally prone to lose their personal holdings.
e) Limited Company that of 2 types,
i) Public Limited Company where minimal number of members needed are 7 and there isn't any upper limit; the quantity of directors end up being at least 3 and
ii) Private Limited Company where minimal number of people needed are 7 along with a maximum maximum of 45. The number of directors must be 2.