How to start your own Company in India

So many graduates and business graduates want to begin their entrepreneurial journey but don’t know where to begin, some know what kind of business they would like to do and then there are others who are still wondering that. For those who understand the nature of the business they’d like to do, the first step is to prepare a business plan

Business plan can be tough to make, but if made with analytical view and rational thinking. It will be the most useful tool one will use. Think of it as your book for your exam.

Once you do that the next step is to start the procedure on registering your company. For that you’ll need to get documentation work in India done by a law firm or even use the expertise of an experienced lawyer.

But if you’re wondering, is it necessary to register your company? The answer is yes, running a business isn’t about finding work and project and finishing it on time. Business involves lot of legal responsibilities and biggest of all is taxation, and for that you need to register your company.

The company’s name should be unique and must follow these rules.  After deciding the name you can establish a number of brands. For example: PepsiCo Incorporation is name of the company and Pepsi, Mountain dew, Gatorade, Lay’s, 7 up are the brands created by them.

WHICH TYPE OF COMPANY TO FORM?

There are three types of company registrations:

1. Private Limited Company can be formed with minimum two members and you can have up to 200 members. The best advantage is that you will get a corporate identity and you will get quick and easy loans and investors for your company. As Banks and financial institutions will always prefer private companies to loan them, since it has perpetual succession.

To Register a Private Limited Company in India, you have to fulfill the following requirements:

• Minimum 2 Members.
  
• Minimum capital for the Company should be Rs. 1,00,000/-
  
• Members should have valid individual proofs and identity.
  
• A valid address proof for your registered office address.
  

2. One Person Company (OPC) is a new concept introduced by the Ministry of Corporate Affairs, and it was first introduces in companies act, 2013. It’s a really good option for a single person who wants to run a company by himself, many freelancers choose this option. There will be only one person who will be the Director and member of the company. Also the maintenance cost of the One Person Company is low comparing to Private Limited Company.

3. Proprietorship is very similar to OPC but has its positive and negatives, to understand the difference between the two check: http://blog.ipleaders.in/one-person-company-sole-proprietorship-how-to-set-p/

4. Partnership can be started by two or more people, the profit generated by the company is shared between the partners and in case loss, all partners are liable to compensate for any incurred by the company.

5. Limited Liability Partnership is an alternate of Partnership firm, here the liability of the partners would be limited and the personal assets of the partners will not come into play, if the company goes into debt. Limited Liability Partnership in India has gained more significance, since the LLP's has more advantage than Private Limited Company and One Person Company.