START A BUSINESS



Aspirations lead the way to our journey of career. However our knowledge in certain matters enable us to take right decisions in the cross roads. Starting a Business is a substantial decision, however the establishment needs to take place from the appropriate stand-point. Read on to learn more about the different types of business establishment selectives and their parameters. Our team of experts shall assist you through the points mentioned herein.

SOLE PROPRIETORSHIP



SALIENT FEATURES

  • A Sole Proprietorship is a business that is owned and managed by a single person.
  • The process of setting up a sole proprietorship business hardly requires 15 days.
  • There is no such thing as registration, proprietorship is recognized by other registrations such as sales tax registration.
  • The liability of the proprietor is unlimited and this form does not have a continued existence.


THE FAQs

  • Can I register my firm at the home address?
  • Yes, you can register your residential address.
  • What Documents are required for the Firm?
  • Just basic documents like Pan Card, Voter Id or Aadhar Card and Electricity Bill or Rent Agreement and NOC from landlord.
  • How much does it cost for registration process?
  • It depends upon different states due to difference in VAT/CST rates and Shop Act License
  • How many days are required for registration?
  • It takes minimum 5 to 7 days or more depending upon different state government department processes.


STRATEGIC PLANNING

Strategic planning is an organization’s process of defining its strategy, or direction and making decisions on allocating its resources to pursue the strategy.

  • Importance
  • Setting a path of operations
  • To align efforts
  • To simplify decision making
  • To simplify decision making
  • Defining missions and objectives
  • Scanning Business Environment
  • Formulating a Plan
  • Implementing the Plan
  • Evaluation and Control

DUE DILIGENCE

The process through which a potential acquirer evaluates a target company or its assets for an acquisition. The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to deliberate in a reflexive manner on the decision at hand and all its costs, benefits, and risks.



INTERNATIONAL PRESENCE

  • Foreign Subsidiary of Indian Company or Indian Subsidiary of Foreign Company
  • Which country would be best to expand the business?
  • What are the various types of organizations that can be registered in that country?
  • What is the cost to incorporate the organization there?
  • What will be the compliances?
  • What will be the taxation in that country and in India?

PARTNERSHIP



A partnership is a popular form of business institution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership are of two types;

  • Registered Partnership
  • Unregistered Partnership

It is not compulsory to register a Partnership Firm however it is advisable to register a partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership Deed amongst the partners.




REGISTRATION PROCESS

  • Choose Partnership Firm name
  • Create Partnership Agreement or Deed with the help of legal professionals
  • Register Partnership firm with the Registrar of firms
  • Apply for PAN Card in the name of the firm
  • Open a Current A/C in the name of the firm in a Bank and register the Partnership Deed

DOCUMENTS REQUIRED

  • ID and Address proof of partners like PAN card / Passport / Voter ID/ Aadhar / DL
  • Business Place Address proof -Rent Agreement and NOC from Landlord / Electricity Bill


THE FAQs

  • Can I register any residential house as Business place?
  • Yes, you can register any residential address as business place, there is no issue regarding this.
  • Is Partnership Deed registration compulsory?
  • No, it is not compulsory to register Partnership Deed but it is recommended.
  • How may days are required for Partnership Registration?
  • It takes a minimum of 5 to 6 days for registration process.

LIMITED LIABILITY PARTNERSHIP



Introduced in 2008, A Limited Liability Partnership combines the advantages of both the company and partnership into a single form of organization. An LLP limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP’s employees or other agents. It is one of the easiest forms of Organization.


REGISTRATION PROCESS

  • Apply for Partners’ DIN and DSC
  • Application to government for name availability of the proposed LLP
  • Verification of documents and forms by Government
  • Filing of Incorporation Documents and forms
  • Certificate of Incorporation
  • Drafting of LLP Agreement
  • Filing of LLP Agreement

REQUIRED DOCUMENTS

  • Scanned copy of PAN card & Passport
  • Scanned copy of Voter Id/Passport/DL
  • Scanned copy of latest Bank statement/Telephone Bill/Electricity Bill
  • Scanned Passport size photograph
  • Specimen signature on Blank document

NOTE: Any of the Partners must self-attest the first three documents. In case of foreign nationals and NRIs all the documents must be notarized or apostilled.



DOCUMENTS REQUIRED FOR REGISTERED OFFICE

  • Scanned copy of latest Bank Statement/Telephone Bill/Electricity Bill
  • Scanned copy of Notarized Rental Agreement in English
  • Scanned copy of Non-Objection Certificate from Property owner
  • Scanned copy of Sale Deed/Property Deed in English

THE FAQs

  • Can we register the LLP at our House Address?
  • Yes, you can register your LLP at your residential address
  • How many days are required for LLP registration?
  • It takes a minimum of 10 to 15 days or more depending upon State Departments

ONE PERSON COMPANY



The concept of One Person Company(OPC) came into existence by The Companies Act 2013, empowering single entrepreneurs to conduct business in company form of organisation.

  • It can only be formed by an Indian National
  • The minimum paid up capital for OPC is Rs. 1 lac
  • The Director of the OPC has to nominate a person who in case of his death/insanity will become the director of the company.


REQUIRED DOCUMENTS

TO BE SUBMITTED BY DIRECTOR

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  • Scanned copy of Voter's ID/Passport/Driver's License
  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned passport-sized photograph
  • Specimen signature (blank document with signature)

NOTE: The director must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notary or apostilled.



DOCUMENTS REQUIRED FOR REGISTERED OFFICE

  • Scanned copy of latest Bank Statement/Telephone Bill/Electricity Bill
  • Scanned copy of Notarized Rental Agreement in English
  • Scanned copy of Non-Objection Certificate from Property owner
  • Scanned copy of Sale Deed/Property Deed in English

REGISTRATION PROCESS

  • Application for Director Identification Number (DIN) in form DIR-3 & DSC (Digital Signature Certificate)
  • Application for the Name availability
  • Drafting of Memorandum of Association (MOA) & Articles of Association (AOA)
  • Filing of e-forms with RoC (Registrar of Companies)
  • Payment of registration fees & Stamp Duty
  • Verification of documents / forms by RoC
  • Issue of Certificate of Incorporation by RoC

NOTE: Your registered office need not be a commercial space; it can be your residence, too.



THE FAQs

  • Can we register our OPC at our Home Address?
  • > Yes, you can register your OPC at your residential address
  • How many days are required for OPC registration?
  • > It takes a minimum of 10 to 15 days or more depending upon the State departments

PRIVATE LIMITED COMPANY



A private limited company implies a company having a minimum of two members and a maximum of two hundred members. It has the advantages of partnership and at the same time has the advantages of limited liability, greater stability and legal entity.


REGISTRATION PROCESS

  • Application for DIN (Director Identification Number) and DSC (Digital Signature Certificate)
  • Search for the name availability
  • Application for the Company name
  • Drafting of memorandum of Association and Article of Association
  • Filing of E-forms with RoC (Registrar of Companies)
  • Payment of Roc fees and Stamp duty
  • Verification of Documents by RoC
  • Issue of Certificate of Incorporation by RoC

REQUIRED DOCUMENTS

  • Scanned copy of PAN card or Passport
  • Scanned copy of Voters ID/Driving License
  • Scanned copy of latest Bank Statement/Telephone Bill/Electricity Bill
  • Scanned passport size photograph
  • Specimen Signature of Directors

NOTE: Any of the Directors must self-attest the first three documents. In case of foreign national and NRIs all the documents must be notarized or apostilled.


DOCUMENTS FOR REGISTERED OFFICE

  • Scanned copy of latest Bank Statement/Telephone Bill/Electricity Bill
  • Scanned copy of Notarized Rental Agreement in English
  • Scanned copy of Non-Objection Certificate from Property owner
  • Scanned copy of Sale Deed/Property Deed in English

THE FAQs

  • Can we register the Private Company at our House Address?
  • Yes, you can register your Private Company at your residential address.
  • How many days are required for private company registration?
  • It takes a minimum of 10 to 15 days or more depending upon State RoC Departments.
  • Can I register my family members in the company?
  • Yes, you can register them as members of company.
  • What is a DSC?
  • The DSC is an instrument issued by certifying authorities by which you can sign electronic documents.
  • What are Article of Association and Memorandum of Association?
  • These documents contain the rules, vision and mission of your organization and define among other things, the exact business and the roles and responsibilities shareholders and directors.

PUBLIC LIMITED COMPANY


A public limited company is the largest form of business available in India. Public limited company is a large company and is formed in order to raise funding from public through IPO etc. There is no limit on maximum no. of members however, after 500 members, SEBI approval is needed.


REGISTRATION PROCESS

  • Public limited company registration require only 2 person to start. No minimum capital requirement is there, one can start with even Rs.5,000. Here are following three important points:

  • Prepare DSC and file Name Approval: The first step is to prepare DSC and DIN. This takes sometime one to two days. Thereafter, you need to file for name approval. The first word of the name should be unique and name should end with the words “Limited.”
  • File for Incorporation: After taking name approval, the next step is to file for incorporation via spice form INC 32. Further, PAN and TAN are not required to be filed separately and the same is allotted on company formation.
  • Take GST Registration: After incorporation, access your business and take necessary registration including GST registration. This is because working without tax license is illegal in India.


DOCUMENTS FOR REGISTRATION

FOR DIRECTORS & SHARE HOLDERS

  • Copy of PAN Card
  • Copy of AADHAR Card
  • Address Proof (Bank Statement, Mobile bill, Telephone bill)
  • Authorization Form

DOCUMENTS FOR REGISTERED OFFICE


  • Ownership Proof (Electricity Bill etc)
  • Utility Bill (Gas Bill, Electricity Bill)
  • NOC (Download format)


THE ESSENTIALS

  • Public Limited Company registration process is very simple with hubco.in. The whole procedure is completely online and one need not visit our office physically to get the Company registration.

  • Step 1 - Arrange all required documents: The first step is to arrange all the documents and send the same over the email to us. We will check it and if everything is fine, you will required to pay 50% advance.
  • Step 2 - DSC, DIN and Name Approval: After receiving the required documents and 50% advance, we shall start your work. We will get the DIN, DSC and the name approval.
  • Step 3 - File for incorporation: Once your name is approved, you will be required to pay the rest of the amount and then we will be file your companies incorporation. Once approval is granted, the incorporation work stands complete.


HOW TO CHOOSE COMPANY NAME

  • Company name is the most important part of registration & hence should be selected with utmost care. Here is the name format:

  • ABC (Prefix) + Technologies (Suffix) + Limited (End)



    ABC - PREFIX: The prefix should reflect your brand name and should be unique. I.e. no it should not match with any existing company or trademark. The example of prefix i.e. your first word is TATA, Reliance, Hubco etc.

    TECHNOLOGIES - SUFFIX: It is regarded as the second word of your company name. This should reflect your main proposed business. E.g., if you are into technology company, then write technology, for steel business, you can use TATA Steel Ltd.

    LIMITED - END: These are the ending words which are mandated by law. Every public company shall end his name with word “Limited”. The word indicate that company is not private and limited means capital is limited.

    Further some other conditions of rule 8 of Companies (Incorporation) Rule, 2014 needs to comply with.


    MANDATORY REQUIREMENTS FOR PUBLIC COMPANY REGISTRATION

    • Now a days, Public company registration has been eased a lot by the Ministry of Corporate Affairs (MCA), further initiatives like startup India has also boosted the company registrations all over India. Further, Public company even allows you to raise capital through public by initiating an IPO. However, to form a public limited company following are the mandatory requirements:

    • Minimum 7 persons are required to start a public limited company in India

    • Whatever is the capital amount of your company, you should invest the same within 2 months of incorporation. Public companies are large companies and hence, all the sections will have direct impact on its compliances.

    • Who can start a Public Company in India?

    • This is one of the most important question that is asked by every person who is willing to start a company in India.Through there is no restriction on anybody to form a company in India, but still, we would like to discuss some special cases:

    • STUDENTS: Students over and above the age of 18 can form any type of company in India.
    • EMPLOYEES: Employees are generally not allowed by their employers to form a company and be a director. They may hold shares but cannot take position as director. If you want to open a company, then check your employment agreement and you may also seek permission from the respective employer.
    • PERSON WITH CRIMINAL BACKGROUND: Though they are not barred to form a company, however, they need to give various declarations to the ROC.

    • How to raise funding in a Public Limited Company?

    • Finance is a lifeline of any business and in todays world every competition is neck to neck, availability of good finance is needed in order to sustain. You may refer the practical example of Flipkart, Ola etc. Hence, you must follow the following in private company in order to raise funds:
    • Build a plan and a working business model: Gone are those days when you can get funding on the basis of an idea.Now, is the time, that you should test your own idea, reach a MVP and then build a strong future plan. Reach investors and list on stock exchange: You may reach the private investors or list your shares on stock exchange. However, initiating a IPO is a very complex task.
    • PREPARE DOCUMENTS: Once you sign the term sheet, next and final step is to prepare documents like Shareholder agreement etc.
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