Starting a business is a highly tricky process involving a number of crucial decisions that will decide the course your business is likely to take. For instance, you will need to decide the kind of organization you will set up, registering your firm and getting approvals, and streamlining the business processes after registration. Planning and carrying out these steps rightly is the first step in realizing your entrepreneurial dreams. Over and above, to do certain businesses in India it is mandatory to obtain registration/license/permission from the concerned regulatory authorities. Registering your business can only open the doors to inviting investments, getting bank loans and creating a corporate image.
The various kinds of business formations in India include Private limited, Public limited, One man company, General Partnership, Limited liability partnership, and Section 25 companies. The challenge lies in deciding what type of business set up will ideally suit your business, the structure you visualize and your specific situation. It is rather the job of accomplished and qualified professionals to guide you on these aspects since there are a lot of complexities involved in the decision. Since you need to take thoroughly informed decision, you will need the support of highly knowledge professionals in the field who too enjoy a clear insight into the legalities involved now and also later during the development of the firm. Therefore, never underestimate the need to obtain professional guidance on this matter.
When you start a business, you will have to first sit with a team of well experienced Company Secretaries and Chartered Accountants who have hands on experience in offering the right kind of solutions for diverse kinds of companies. In the first step, they can grasp your exact vision and requirements and suggest you the right kind of set up. Then on your behalf, they will undertake to draft the application, prepare the support documents, liaison with the authorities, solve the queries and get the registration certificate right on your table. However, you need to do an independent research too by getting to know the basics of business formation.
Businesses being formed in India can be registered as any one of the following entities:
- Private Limited Company
- Public Limited Company
- Unlimited Company
- Limited Liability Partnership (LLP)
- Sole Proprietorship
- Liaison Office/Representative Office
- Project Office
- Branch Office
- Joint Venture Company
- Subsidiary Company
Entrepreneurs both from India and abroad can form Private Limited Company, Public Limited Company, Unlimited Company, Sole Proprietorship, Limited Liability Partnership (LLP), and Partnership Company. Foreign firms can choose from the options such as Liaison Office or Representative Office, Project Office, Branch Office, or Joint Venture Company. Foreign investors require special licenses and permissions and it is an altogether comprehensive topic to discuss elsewhere.
Business formation in India requires a number of initial steps like getting approval from the Registrar of Companies (ROC); getting the Memorandum of Association and Articles of Association vetted, stamped and printed; getting the certificate of incorporation; obtaining a company seal, Permanent Account Number and Tax Account Number; registering under Shops and Establishments Act, Value Added Tax (VAT), Professional Tax, Employees Provident Fund and ESIC (medical Insurance). Once these steps are completed, you are on your royal road to do a successful business in India.