Legal Procedures - Start Up Structures

Sole Ownership-
The catch here is that it needs the name of one person for the Registration. It costs nearly Rs. 3000 for the Service tax registration or Shop Act License, and typically takes a week to process. The good news here - it's the easiest and cheapest way around.

Mind, this model is difficult to scale. You'll have to convert into a private limited company when your company starts to grow. Also, because there's no limited liability, you cannot raise money for your new startup.

One Person Entity-
Not to be confused with sole ownership, this type of registration also needs one person for the registration. Costing over Rs.13,000, this typically takes a fortnight to process.

There are pros and cons here as well. This registration allows you legal status as single founder. The bad news is, you can't include a partner in the business.

Private Ltd -
The most common of them all, this registration needs 2 people. It could be you or else you can include your any family member on the paper. The charges are in and around Rs. 15,000, and best part is you can raise capital from banks or other investors. The only downside is that annual compliance is higher as compared to a simple firm or other legal entities.

Limited Liability Partnership-
This type of registration requires a minimum of 2 people. Costing well over Rs. 9,000, it means you are doing business with limited liability.

In case you don't have the money, and you still want to enjoy the features of being a private limited, this is the best idea.

Partnership Firm with/wo Registrar of Companies-
Another registration that requires a minimum of 2 people, this Rs. 3000 registration is targeted more towards testing your ideas and has less compliance.

The only bad news here is that you cannot file a case against any partner or third party in the business is you're registering as a partnership firm.

If you want to register with the Registrar of Companies, the price goes up to Rs. 8000. You rather have an LLP for that price, honestly. It'll give you more advantages and that too at the same cost and tax slabs.

Now go, start up.

Source - more  

The Procedure should be made simple with the Facilities deed the New Businessman/Owner of business will be getting. The List of Business which is highly needed by Country/State. There should be complete Guide for that business regarding the Basic Infrastructure, Machinery, Raw material and lastly the Market. more  
First of all, all the states should have single window facility for start ups. more  
Some one should clarify where to start from for registration of Partnership Firm. In Delhi SDM asks for for PAN of would be firm, Service Tax Regn, VAT regn...How to get Registered Registrar want water bill of premises lender- the water bill may be continuing in dead person name & Bill itself is a tiny paper- why can't they give other choice e.g.Electricity, Land line or other proof- Signature attestation by some Notary- God Knows Who is He why can't the SDM himself ask Partners to sign before him & reconcile with Driving licence or other documents by bank manager etc.. For PAN- they require Bank Current Account- which can not be opened without so many formalities or round stamp- which requires firm's letter head & so on. So some one should enumerate how to start from where to start? more  
Until the start up achieves the business of being liable for service tax one can grow as a proprietary or a one person entity. When the need arises convert into an LLP When the business grows go up the ladder with an unlisted Ltd company. When further growth is warranted reorganise to be a public Ltd. Co capable of going public. It is the best way to clock growth with fundamental strength. One need not worry abt so many things till one hits a threshold level.of business Suffice it to meet the basic needs for organising the business. That way the risk profile is also manageable more  
Dear Friends/Clients & Partners, Please note I am traveling at this moment without any access to my emails and India hand phone. You may reach my colleagues as below for matter of urgency: - Bangalore related : Arjun @ - 98862 86890 - Chennai related : Ashok @ - 97899 88336 - Finance related : Arul @ - 81240 73100 - IT related : Ram @ - 99629 46782 I will be back on 16th August 2016- Have a great day! Best Regards Ajay Anand more  
Post a Comment

Related Posts

    • Google is a pathetic company

      Google India hiked the rate of business mail by 350 %. With fear of recession looming and when msme are struggling this is not the right thing to do. It will cost msme sector 5000 crore per year...

      By Vishal Khanna
    • GST filing

      Still GST system is not 100 % user/official friendly. there are news that so much money (in lacs) collected by fraudulent GST bills. I am a GST registered vendor. The company turn over is almo...

      By Subramanian Venkataraman
    • Taxation Issues faced by Startups: Inputs Sought

      Many of you know how LocalCircles had worked with the Government in 2019 on resolution of angel tax issues under Section 56 (2)(viib) of the Income Tax act. Once again, the Government h...

      By LocalCircles Manager
    • Why no penalty an dprosecution for govt

      Now our IT portal has become sick being suffering babu virus or extortion virus. McA site never works on last days and people have to pay penalties for mistakes of govt. Now professionals are wasti...

    • Income Tax Return Filing Portal

      What about income tax return filing date? Any extension thereof? As of today, I am not able to file the return . Has any one else file the income tax return? Has Portal issue been solved? I have al...

      By Hasmukh Sangani
    • Grass root experience

      I have been doing and promoting small business for the last 30 years. The real problem is that the ministers and their secretaries don't have practical experience and they look for 5 trillion dolla...

    • Why do Ministers refrain from engaging with businesses

      I find it quite interesting that the ministers want to deal only with tata adani ambani and not the real msme and startups. Why is the msme minister (appointed this week Narayan Rane) his secretary...

      By Aditi Mitra
    • Why such mismanagement

      FICCI the industry association has written to Centre saying most of 40000 ventilators manufactured under PM Cares Fund last year are lying unused at government facilities. Mainly due to negligence ...

      By Sudesh Rai
    • Word of caution to Indian small entrepreneurs

      Friends this is Aditya from New Jersey. A friend of mine from Brazil recently lost 3 members of his family back home to Covid. The P1 variant is most dangerous of all and is now invading neighbors ...

      By Aditya Sharma
    • simplifying procedures for easy business

      none of the administrators who are lucky to get into govt seats have practical field experience and they are not aware of the strains of small entrepreneurs. They always imagine that any entrepren...

      By Subramanian Venkataraman
    • Some Traders evading gst

      I agree with the other post. Traders have a strike today against GST. Many traders basically are still selling supplies in cash and then sell the bill later to some other entity for a pr...

      By SN Mittal
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)