COMPANY FORMATION / EVOLUTION OF COMPANIES / INCUBATE COMPANIES


  • Why support entrepreneurial spirit?
  • Know about Gyan on types of companies?
  • How to set up a business or commence trade practice?
  • Know about Registration as a Company & Legal Requirements?

ENTREPRENEURIAL SPIRIT


Image

Few of us immediately on finishing school education or after obtaining a professional degree, get a job for making a living. The pay package depends on so many aspects evaluated about the candidate in the interview by the panel. Many people wish to become entrepreneurs. Instead of going to a job, they create a source of income and turn into an entrepreneur, paving their own ways and means to start a business, or to take off from their parents or ancestral trade, for their fast upliftment of the standard of their life. Some do not want to work for someone rather they would love to work for themselves and inch towards their own dream / goal. Some of them achieve in a big way and for some achievement is yet to be dawned on them in their own business. Precisely
they wish to be bosses in their own way.


    Types of ownership


    Proprietorship: The proprietor and the business are one and the same

    Partnership: If two or more people joint together and starts up a business

    LLP: A separate legal entity in partnership with share holders

    Private Limited: A separate legal entity formed with minimum share holders

    Public Limited: A separate legal entity with public at large as share holders

    Each type has its own merits and demerits. Various criteria has to be looked in to for choosing an appropriate business type. Once the Company is formed, it's just like a just born baby, several other legal registrations are required to give a complete status.


    The legal requirements varies depending upon the field of business activity, it varies from industry to industry. Some of the basic things that are required in common are:

    • Trademark Registration
    • TIN/VAT/CST
    • Service Tax
    • License from Local Body
    • shop and Establishment Act Reg.
    • ESIC/PF
    • Necessary IP rights

    Now the just born baby has grown high, there are several other care that need to be taken as that of IT returns submissions, protecting confidential information from staffs, having business relationship with other organizations via agreements, mergers, acquisitions etc.

    Out of these things, mergers and acquisitions plays a vital role in big grown organizations.

    Business acquisition and merger are the process to strengthen our own organization with the goodwill or the strength of the acquired company, in simple words it’s a corporate strategy.

    Pre-requisites: in starting up a business


    • Choose a field of interest
    • Thorough knowledge about it
    • Form a company / business
    • Satisfy the legal requirements
    • Launch your business

    Once you have chosen the field of interest, the next step is to decide the business structure ie. the type of ownership of the business.

    SETTING UP BUSINESS IN INDIA

    Do you want to start a new business in India?

    Before starting any business, certain basic questions will click your mind such as

    What type of organization to be formed?

    What is the procedure for setting up?

    What is the post set up actions?

    What are continuous essentials for business?

    WHERE TO SET UP AND KEY FACTORS FOR INDUSTRY?

    SERVICE & TRADING

    • Nature of Business
    • Target Customer

    MANUFACTURING

    • Location
    • Availability of raw material
    • Proximity to the Market
    • Labour supply
    • Transport facilities
    • Infrastructure
    • Climatic factors

WHAT TYPE OF ORGANIZATION TO BE FORMED?


COMPANY

IA company is registered in accordance with the Companies Act and is a separate legal entity, distinct from its shareholders, directors and managers. The liability of the shareholders is limited to the amount paid or unpaid on issued share capital. A company has unlimited life and no limit is placed on the number of shareholders.

  • Is the company corporate i.e. Owners & Company are distinct
  • Owners are known as shareholders
  • Company is managed by Directors
  • Registration is required for forming company
  • Every shareholder owns share in the capital of Company
  • Company is recognized and regularized by law
  • Suitable for medium and large scale operations

LIMITED LIABILITY PARTNERSHIP

Foreign entity may set up subsidiary companies in India which can be private or public limited, with or without limited liability.

A Limited Liability Partnership, popularly known as LLP combines the advantages of both the Company and Partnership into a single form of organization. LLP is a partnership with liability of partners limited to contribution. It is also a Body Corporate means partners and LLP are distinct entity. LLP is formed pursuant to LLP Agreement between the partners.

  • Is a body corporate i.e. Partners & LLP are distinct
  • LLP is recognized and regulated by law
  • Registration is required for forming LLP
  • No limit on maximum number of partners
  • Liability of partners is limited and does not extend to personal assets
  • Suitable for all type of operations

PARTNERSHIP

Partnership is combination of two or more proprietorships, who have agreed to pool their resources for a common objective and with a view to earn profit. Partnerships are established pursuant to partnership deed between the partners and they can be formed for particular time duration or particular project and according to the will of the partners.

  • Partnership is not a Corporate Body
  • It is not recognized by law
  • Registration is required for forming LLP
  • Liability of Partner is unlimited
  • Suitable for small and medium scale of operations

PROPRIETORSHIP

A sole proprietorship is the oldest and the most common form of business. It is a one-man organization where a single individual owns, manages and controls the business. Sole Proprietor is run and managed by its owner and he is primarily responsible for its success and failure. The capital to get the business going must come from either you or from loans.

  • Easy to form, no registration is required
  • It is not recognized by law
  • Owner is the king of the business
  • Liability of owner is unlimited
  • Owner is responsible for managing the business

LIAISON

Companies Incorporated outside India can establish their Liaison Offices in India.

BRANCH OFFICE

Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up a branch office in India with specific approval from Reserve Bank of India to undertake the permitted activities only.

COMPANY-INCORPORATION PROCEDURE

  • Obtaining Directors Identification Number for the Directors
  • Applying for Digital Signatures for Director
  • Making application for name approval of company
  • Filing incorporation papers with the Registrar of Companies
  • Preparing Memorandum & Articles of Association and paying stamp duty on the same
  • Obtaining Directors Identification Number for the Directors
  • Applying for Digital Signatures for Director
  • Making application for name approval of company
  • Preparing Memorandum & Articles of Association
  • Filing incorporation documents with the Registrar of Company
  • Certificate of Incorporation

PARTNERSHIP-FORMATION PROCEDURE

  • Enter into Partnership Agreement
  • Register Partnership with the Registrar of Firms

PROPRIETORSHIP-FORMATION PROCEDURE

  • No formal procedure
  • Business can be started at any point of time

Forming an organization is just a beginning and only half job is done.

In order to carry on business, further actions needs to be taken.

SETTING UP OFFICE & INFRASTRUCTURE

  • Purchase/rent office
  • If possible, business can also be run from home
  • Apply for water and electricity connection
  • Apply for internet and telecommunication connection

OPENING OF BANK ACCOUNT

  • Check the facilities offered by each Bank
  • With online banking, logistics factor is not much important
  • Prefer private banks in comparison to Public Sector banks

OBTAIN TAX NUMBER

  • Mandatory numbers like PAN & TAN
  • Business specific tax numbers like service tax, value added tax

BUSINESS SPECIFIC APPROVAL

  • In case of certain business, it is necessary to obtain the permission of prescribed regulatory authority before undertaking the said business.

HIRING OF MANPOWER

  • What are the requirements of the jobs to be filled?
  • What kinds of persons are needed?
  • How many persons are needed?
  • What sources of recruitment may be utilized?

Other Requirements

Labour Registration

  • Registration under applicable labour laws Printing of stationery
  • Printing of letterheads, sign boards, visiting cards and other stationary

    INNOVATIVE CALCULATORS


    Check business set up process

    Check Tax and other business incentive

    Formation Assistance – your guide to business form

    CUSTOMIZED INFORMATION NEED TO THE USER


    Select Nationality

    Select your business motive

    Get the desired information

What are continuous essentials for business?


Compliance of all applicable laws Maintenance of Books of Accounts Payroll Management

Comprehensive Information on all the issues relating to setting up business in India


All Services Relating to setting of any type of Business all across India under One Roof


  • Complete Business Setup package
  • Joint Venture Advisory
  • Business Entity Formation
  • Shelf Company
  • Services For Startups
  • Business Support Services
  • Compliance Management
  • Business Approvals
  • Tax Registration
  • Trademark Registration
  • Registered/Virtual Office
  • Registration under Software Technology Park Scheme
  • Business Research Report
  • Brand Research
  • Public Relations
  • Business Buy/Sell
  • Tax Advisor