WHAT IS MEAN BY BUSINESS STARTUP IN INDIA?
The Government of India has announced 'Start-up India' initiative for creating a conducive environment for start-ups in India.
An entity formed by splitting up or recreation of a current business will not be considered as start-up.
Government introduces various start-ups schemes, through this scheme central government and state government reduces tax burden and compliances. Government of India has given a lot of benefit to the Business Start-up in India like tax exemption or fast track IPR registration etc.
Register your Business with PAA CS Firm through 100% Hassle-free quick online process within 5 working days only with professionally experts.
PAA CS Firm provides hassle-free online services with 24/7 professional support for Business Start-up Registration Services. PAA CS firm is the Best CS firm in Delhi NCR having MULTI SPECIALIZED team of professionals and associates to handle Start-up Registration Process for our esteemed Clients.
NOW, you can apply fast online process with PAA CS Firm and get your Business Registered with us easily.
VARIOUS FORMS OF STARTING BUSINESS IN INDIA
The first question comes in the mind of any person before starting any business in India is that in which form of Business, he/she/it has to start the business and What will be its limitation and benefits of that form of Business.
FORMS OF BUSINESS IN INDIA–
• Sole proprietorship firm
• Partnership Firm
• Limited liability partnership firm
• Company Form -
1. Private company
2. Public company
3. Section 8 company/NGO/Trust/Co-operative Society
4. One person company (OPC)
5. Producer company
6. Nidhi company
SOLE PROPRIETORSHIP FIRM
Sole proprietorship is also known as a sole tradership, individual entrepreneurship or proprietorship, is a type of enterprise owned and run by one person and in which there is no legal discrimination between the proprietor and the business substance.
In sole proprietorship owner is responsible for unlimited liability that means owner is personally liable for his debts.
Who can opt for such type of business?
An Individual in INDIA can carry this type of Business.
In this type of form of business only trade licence is required from local Municipal authority and no other documents & permission are required.
Characteristics of sole proprietorship are:
1. Sole Ownership- A solitary individual is a proprietor of this type of business.
2. Unlimited Liability.
3. Limited Work Area.
4. Sole Right on Capital.
5. Sole Management.
6. No Legal Formalities.
7. Free to Select his Business.
8. Wil-full Commencement and Closure.
PARTNERSHIP FIRM
Partnership firm is a form of business in which two or more persons come together to form a business and agreed to share profit of business as per mutually agreed ratio between them.
The Indian partnership act 1932 is applicable in the partnership firm. This form of business is easy to form. Agreement between partners i.e. partnership agreement must be in partnership firm.
The registration of partnership firm is not compulsory it is voluntary. If partnership firm is registered then it will have some more benefits in comparison to other non-registered partnership firm. Partners in the partnership firm will have unlimited liability. Sometimes in this type of firm partners have to pay liability of others partner in the firm.
Any partnership firm may start its business by obtaining trade license under shops and establishment Act and a PAN Card in the firm’s name.
Who can opt for such type of business?
Any partnership firm may start its business by obtaining trade license under shops and establishment Act and a PAN Card in the firm’s name.
LIMITED LIABILITY PARTNERSHIP FIRM
Limited liability partnership firm is a partnership in which some partners or all of the partners are having limited liability. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence.
LLP is a hybrid form of partnership firm under Indian partnership act 1932 and company under companies act 2013. LLP firm are governed by LLP act 2008.
This form of business is quite useful for the small and medium enterprises who wants to take advantage of corporate form with low cost and less compliances. Mostly service sector preferred this form of businesses like Company secretaries, Chartered accountant, Cost accountant and advocates etc.
Who can opt for such type of business?
Every LLP must have minimum 2 individuals as a designated partner and one designated partner must be a resident of India. Limited liability partnership is easy form of business in comparison to partnership firm.
DOCUMENTS REQUIRED FOR STARTUP BUSINESS IN INDIA
1. Copy of Rental Agreement / EB Card Copy of Registered Office
2. Copy of Latest Bank Statement
3. Copy of Latest Utility bills / Electricity bill, Water bill etc (but bill shall not older than 2 months)
4. If Subscribers and Directors does not have a DIN, then it is mandatory to attach proof identity and residential address.
5. Passport-size photograph
6. PAN Card and Residence proof of Directors of the Company
7. Specimen Signature (blank documents with directors signature only)
8. Authorization Letter for GST registration
WHAT EXTRA SERVICES WE PROVIDED:
• Name Approval
• Certificate of Incorporation (COI)
• PAN & TAN of Company
• DSC for 2 Directors
• DIN for 2 Directors
• Draft MOA & AOA
COMPANY FORMS
Corporate form of business is considered to be most organised form of business. There are different types of form of business as company in India for to start-up business in India.
1. PUBLIC COMPANY-
Any company incorporation will be governed by companies act 2013. Public company requires minimum 7 subscribers and 3 directors.
In this type of company there is a public stake and the compliances in these companies are complicated in comparison to private company.
In this form of business shareholders are free to transfer their share to any other person.
2. PRIVATE COMPANY-
Private companies are those where owners are the members of the family. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO).
Who can opt for such type of business?
This is the best form of start-up of business in India nowdays. The liability of members in private company is limited.
Private company requires minimum of 2 members and 2 directors. The legal cost and compliances are more less than public company.
3. SECTION 8 COMPANY
Section 8 company is a company which is registered as a Non-Profit organisation (NPO) and this company has motive of promoting arts, commerce, science, social welfare, charity or alike other objectives.
These persons can opt for such type of business who intends to use its profit or other income in promoting above activities only.
The person who opt for such type of business should not be intend to pay dividend to its members.
Section 8 company is formed by those persons who do not need or wish to earn financial or other kinds of profit from the business. Instead, they focus on in improving the social structure.
Who can opt for such type of business?
A section 8 company is similar to a trust or society. These company are formed by such entrepreneurs who do not have any profit motive.
Section 8 company are not allowed to collect the funds by way of deposits. The Companies Act, 2013 governs all such entities and makes it necessary for them to register. We at PAA cater to all the requirements regarding such company formation in India.
4. ONE PERSON COMPANY (OPC) –
One person company is a company incorporated by single person. This type of company is governed by companies act 2013.
One person company (OPC) requires only one member and one director. This company is same as private company.
Who can opt for such type of business?
5. PRODUCER COMPANY -
Producer company means a body corporate having objects or activities specified in section 581B of the companies act 1956 and this company registered as producer company in this act.
Ten or more Primary producers are required to form a producer company.
Who can opt for such type of business?
Corporate form of business is considered to be most organised form of business. There are different types of form of business as company in India for to start-up business in India.
1. PUBLIC COMPANY-
Any company incorporation will be governed by companies act 2013. Public company requires minimum 7 subscribers and 3 directors.
In this type of company there is a public stake and the compliances in these companies are complicated in comparison to private company.
In this form of business shareholders are free to transfer their share to any other person.
2. PRIVATE COMPANY-
Private companies are those where owners are the members of the family. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO).
This is the best form of start-up of business in India nowdays. The liability of members in private company is limited.
Private company requires minimum of 2 members and 2 directors. The legal cost and compliances are more less than public company.
3. SECTION 8 COMPANY
Section 8 company is a company which is registered as a Non-Profit organisation (NPO) and this company has motive of promoting arts, commerce, science, social welfare, charity or alike other objectives.
These persons can opt for such type of business who intends to use its profit or other income in promoting above activities only.
The person who opt for such type of business should not be intend to pay dividend to its members.
Section 8 company is formed by those persons who do not need or wish to earn financial or other kinds of profit from the business. Instead, they focus on in improving the social structure.
A section 8 company is similar to a trust or society. These company are formed by such entrepreneurs who do not have any profit motive.
Section 8 company are not allowed to collect the funds by way of deposits. The Companies Act, 2013 governs all such entities and makes it necessary for them to register. We at PAA cater to all the requirements regarding such company formation in India.
4. ONE PERSON COMPANY (OPC) –
One person company is a company incorporated by single person. This type of company is governed by companies act 2013.
One person company (OPC) requires only one member and one director. This company is same as private company.
5. PRODUCER COMPANY -
Producer company means a body corporate having objects or activities specified in section 581B of the companies act 1956 and this company registered as producer company in this act.
Ten or more Primary producers are required to form a producer company.
A minimum capital of Rs 500,000 is required to incorporate a producer company.
After registration producer company shall become an private company only not an public company.
6. NIDHI COMPANY-
Nidhi company is a type of non-Banking financial company. Nidhi companies are formed for to barrow and lend money from its member.
The objective of Nidhi company is to increase the savings of its members. The company give loan to its member in interest less than the bank through which it helps its member in increasing their savings.
Establishing a new business seems like a challenging proposition. Yet, it can reap great benefits for both the company and the economy at large. With many entities looking to set up enterprises, there are a few things to consider when you’re going for registering your business in India.
In Today’s era, entities require registration under various laws, authorities. In order to Serve our client, the best, we provide a wide array of Registration Services to our clients as may be required under various laws, regulations, including Digital Signature Services to our Clients.
• Overview
• FAQS
• Procedure
• Checklist
• Starting Business in India
• Registration of Foreign companies
• Account Outsourcing
DOCUMENTS REQUIRED FOR STARTUP BUSINESS IN INDIA
1. Copy of Rental Agreement / EB Card Copy of Registered Office
2. Copy of Latest Bank Statement
3. Copy of Latest Utility bills / Electricity bill, Water bill etc (but bill shall not older than 2 months)
4. If Subscribers and Directors does not have a DIN, then it is mandatory to attach proof identity and residential address.
5. Passport-size photograph
6. PAN Card and Residence proof of Directors of the Company
7. Specimen Signature (blank documents with directors signature only)
8. Authorization Letter for GST registration
IF you want more information about the Business Start-up Business Registration process, you can call us on mentioned numbers. We are committed to deliver prompt and hassle-free services in your Budget.
IEC CERTIFICATION (Import Export Code)
Everyone in India wants to do business globally for which they have to take license or permission which is similar to as Import Export code because every person must have to take IEC before import and export of goods and services.
Import Export code is a key business identification number which is mandatory for import and export of goods and services.
Applicant can apply for IEC to the Directorate general of foreign trade (DGFT) in its website. Only DGFT is allowed to issue the import and export code.
In case of import or export of services or technology, the IEC shall be required only when the service or technology provider is taking benefits under the Foreign Trade Policy or is dealing with specified services or technologies.
IEC is separately issued by the DGFT. IEC is 10 Digit code number that has lifetime validity.
These are the following person who can apply for the IEC –
Who can opt for IEC Certificates?
• Limited liability partnership firm
• Partnership firm
• Company
• Hindu undivided family (HUF)
• Trust
• Cooperative society
• Individual
Documents Required for IEC Certification
1. PAN Card (Any applicant must have PAN before applying IEC)
2. Bank details (bank account must be the name of the firm or company)
3. Address Proof (Address may be physically verified by the DGFT on issuance of the IEC )
4. Company or firm details
5. Individuals’ voter ID or Aadhaar card or passport copy
6. Copy of rent agreement or electricity bill of the premise.
Benefits of IEC Certification
GROWTH OF BUSINESS- IEC help person in entering in global market and grow ots business in next level.
NO NEED FOR RENEWAL- Only one time registration is needed and it will be valid for lifetime of the applicant.
GET SEVERAL BENEFITS- Any person who apply for IEC registration they will get several benefits from DGFT.
EASY PROCESSING- Whoever wants to get registration for IEC they will easily get registration because it is very easy process to apply for IEC.
Important Points to be Remembered
• When importer sends money abroad through bank then its needed by bank.
• When importer has to clear his shipments from the customs.
• When exporter has to send his shipments then it needed by customs port.
• When an exporter receives money in foreign currency.
