Given below are 6 things to know before registering your startup:
Ease of Setup:
It normally a Private Limited 10-12 working days, LLP 8-10 working days and OPC 10 to 12 working days to setup.
One Person Company Or Private Limited Company. The Government of India plans to reduce this to about a day by this April.
Who is it for?
One Person Company is meant for small entrepreneur who would otherwise start sole proprietorship like grocery shopkeepers, jewelers, medical shop owners, small food joints etc. Individual consultants or technical professionals can start a One Person Company.
Limited liability Partnership is meant for startup technology and software companies, services companies with the low business volume lower than 1 Crore. Consultants, legal professional’s activities and architects etc. Prefer this while starting a new practice with a peer group.
Private Limited Company fits your requirements well if your company is growing fast.
Limited Liability Partnership and One Person Company has far fewer legal and compliance requirements. This relaxed framework gives business owners some breathing space.
Private Limited Company is bound by law to keep records of their shareholder meetings and is expected to notify Registrar of Companies (RoR) if an operational structure or share holding pattern is changed.
Funding and Expansion:
A Private Limited Company is best supports rapid business expansion. Because it allows use of secured or unsecured financial instruments to compensate venture capitalists, banks or other creditors.
Limited Liability Partnership and One Person Company isn’t well suited to tackle rapid business expansion
Better Brand Value
Private Companies are more credible due to statutory audit compliance because external auditors perform the audit of business accounts.
This is not true for Limited Liability Partnership or a One Person Company. For more information about how to register your business. Talk to our customer champions.
Private Limited, OPC, and LLP have the feature of Limited Liability and hence all the 3 options gives you peace of mind in business in terms of protection from legal-statutory liabilities.