First and foremost, select a name for your business and make it a legal entity. If the name gets approved better book a domain name under the same (that too at the earliest possible). To start a start-up business from scratch you need to follow a process.
Register your start-up business
1. Decide and lock on the name of the registering name of the company
2. Apply for A DIN (Director Identification Number) and DSC (Digital Signature Certificate)
3. Company Incorporation
4. Apply for PAN/ TAN
If this is a sole proprietorship business there is no need to register the business, instead, make sure that the proper licence is acquired from the governing bodies.
How to Register a Company in India?
company in India is now a simple 4-step process. Here is what you will need to
Digital Signature Certificate (DSC)
ii. A Director Identification Number
iii. Registration on the MCA Portal or
New user registration
iv. Certificate of Incorporation
helps. If you still need assistance or guidance with regard to registering your
company, just let us know and our team of experts will be there to guide you
If you still require assistance or guidance with regard to registering
your company, just let us know and our team of experts will be there to guide
you through it for a nominal fee. Please do call Rushabh Vora at +91 9619776461
or e-mail at firstname.lastname@example.org.
Starting a business? Picking the right company
structure for your business is as important as any other business-related
activity. The right business structure will allow your enterprise to operate
efficiently. In India, every business must be registered as part of the
mandatory legal compliance. Before we learn how to register a company, let’s
try and understand the types of business structures in India.
What are the types of business structures in India?
Let’s try and understand the types of business
structures available in India. Here is a list of some of them:
1. One Person Company (OPC)
Recently introduced in the year 2013, an OPC is the best way to start a company
if there exists only one promoter or owner. It enables a sole-proprietor to
carry on his work and still be part of the corporate framework.
2. Limited Liability Partnership (LLP)
A separate legal entity, in an LLP the liabilities of partners are only limited
only to their agreed contribution.
3. Private Limited Company (PLC)
A company in the eyes of the law is regarded as a separate legal entity from
its founders. It has shareholders (stakeholders) and directors (company
officers). Each individual is regarded as an employee of the company.
4. Public Limited Company (PLC)
A PLC is a voluntary association of members which is incorporated under company
law. It has a separate legal existence and the liabilities of its members are
limited to shares they hold.
You can choose what business structure suits your business needs best and accordingly register your business.
Here is a comparative list of the popular business structures in India.
Other forms of business structures include Sole proprietorship, Hindu Undivided Family, and Partnership firms. Please bear in mind, these structures do not come under the ambit of company law. Hope this helps towards achieving your business aspirations.
If you still require assistance or guidance with regard to registering your company, just let us know and our team of experts will be there to guide you through it for a nominal fee. Please do call Rushabh Vora at +91 9619776461 or e-mail at email@example.com.
Every entrepreneur dreams of operating on the business idea he or she sees potential in. Yes, for a profit. However, it is not so as easy to set up one’s shop. There are rules and legal compliances to be met. Not only is it necessary to register your entity but it is critical that all the norms are met, for your functional ease. This organised legal entity or the so-called company that can possess property, sign documents and take legal actions.
Here is why you should register your company
liability of the owners
Members of a company are not personally
responsible for the debts of the business under the company’s name. Thus,
creditors cannot claim the personal assets of the members.
A company exists independent of its members.
So, if a co-owner dies or wishes to sell his share, the company would still
continue to exist.
in the Income Tax
Companies often have many tax advantages such
as savings on self-employment taxes, deductibility of various insurances like
life insurance, health insurance, etc.
Forming a company establishes credibility
within the business circle. It is more prestigious and trustworthy.
It is easier to raise capital in a company through the sale of stock or by borrowing money.
What are the challenges you will face?
Forming a company comes many responsibilities
such as holding and documenting records, issuing shares of stock to the
holders, organizing meetings of director and shareholders, etc. which needs a
fair amount of management and skills.
Along with the fees paid during the inception of the company, there are many ongoing dues, such as filing an annual report, franchise tax, etc. from time to time. One needs some amount of money aside to keep it rolling in the business.
Managerial finance is a specialised branch of finance that
deals with the analysis of accounting. The technical method is concerned with the
measuring of the right technique, methodology and the proper execution of
accounting methods. Whereas, the managerial approach, is the understanding of
what the figures indicate within the given annual report.
The managerial approach indicates if a company is doing
better or worse. It also assesses the movement trajectory of the competitors to
assess the real picture. This sort of an analysis using the managerial approach
offer deep insights into the behaviours and trends of the company’s progress. It
helps not only identify issues but also help design solutions by recognising
flaws and the bottlenecks.
A sound financial management approach helps a company to
remain agile, by helping the company to consolidate common resources to create
newer business opportunities or save costs.
There is also a need to determine future expenses and
their effect on the company’s overall budget. Variable budgeting is used to
properly grasp the accuracy of the budgeting process that will help with the
The following techniques are borrowed from corporate
finance to achieve these objectives:
- Valuation- It is the
process of determining the present value (PV) of an asset. Valuations
can be done on
assets (for example, investments in marketable securities such as stocks, options,
business enterprises, or intangible assets such as patents and trademarks) or
on liabilities (e.g. bonds issued by a company). Valuations are needed for many
reasons such as investment analysis, capital budgeting, merger and acquisition
transactions, financial reporting, taxable events to determine the proper tax
liability, and litigation issues.
- Dividend policy– Dividend
policy is concerned with financial policies regarding paying cash dividend in
the present or paying an increased dividend at a later stage. Whether to issue
dividends, and what amount, is determined on the basis of the company’s
unappropriated profit (excess cash) and influenced by the company’s long-term
earning power. When cash surplus exists and is not needed by the firm, then
management is expected to pay out some or all of those surplus earnings in the
form of cash dividends or to repurchase the company’s stock through a share
- Working capital management: Managing the corporation’s working capital position to
sustain ongoing business operations is referred to as working capital
management. These involve managing the relationship between a firm’s short-term
assets and its short-term liabilities.
- Capital structure: In a corporate setup, capital structure is the way an establishment
finances its assets through the combination of equity, debts or hybrid
securities. Capital structure defines how this combination is arranged.