Starting your Own Business
Starting your OWN BUSINESS? What? That surely sounds terrifying yet electrifying! Starting up a business is like starting a new life from A, with an aim to reach the final Z. The in-between alphabets need to be perfect in order to make it a successful journey.
We are here to provide you with a one-stop solution! From setting up your entity to formulating a business plan, to getting the right amount of funding, to fulfilling all the legal necessities. We’ll make your journey a cakewalk!
From the get-go, you must focus on adhering to the requisite regulations and the inevitable legal process to avoid unnecessary government regulation and to carry on the business smoothly. No worries when Vakilgiri is here!
Steps involved in Starting Your Business
Formulate a business plan/model
The first and foremost step is to devise a business plan, that is how you intend to run your business in the future. Create a blueprint for your future operations. This would help you track your business performance from time to time. Your plan must be flexible yet objective. Make sure that you clearly state the objectives of your business, whether long-term or short-term. DO NOT keep them vague.
The key points to keep in mind while formulating the plan for your business include:
- Key partners
- Key activities
- Key resources
- Unique value proposition
- Customer relationships
- Channels (medium through which the product would reach the consumer)
- Cost structure
- Revenue streams
Set up the right entity, it’ll be your identity!
Most businessmen tend to make a blunder in choosing the suitable entity for their business! Think of it as the first step of the stairs to success!
Yes, it plays a pivotal role in various business decisions ranging from ownership to profit sharing to management control. It is essential that you analyze your requirements thoroughly and then decide on the type of entity. We help you choose the perfect structure for your business, and aid you in complying with all the required registration procedures.
A business structure may take the form of:
Proprietorship – Sole proprietorship is the simplest form of business entity, also known as a one-man business organization. The entire ownership and management of the business are in the hands of a single person. The owner is the sole risk bearer, and thus, enjoys all the undivided profits of the business (or losses!). Here, the owner and the business have no separate legal entity, and thus, the business does not enjoy perpetual succession.
One-person Company(OPC) – Such a company has a single shareholder, who looks after the management of the entire company. OPC enjoys all the advantages of a company including perpetual existence and independent legal identity.
Isn’t OPC the same as SOLE PROPRIETORSHIP?
It is quite natural to assume that OPC is the same as a sole proprietorship.
They may look the same because the ownership and management are in the hands of a single person. But, they vary considerably!
One of the major differences between a sole proprietorship and an OPC is that a sole proprietor has unlimited liability towards his business. That is, his private property can be used to pay off the debts of the business. However, in the case of OPC, the promoter (owner) is NOT personally liable for business liabilities. This is because here, the owner and the business are 2 separate legal entities.
Partnership firm – You must have definitely heard the term ‘Partner’ or ‘Partners’ at least once in your life. This is because a partnership firm is the most common type of business in India!
It is essentially an agreement between two or more persons who have agreed to share the profits of a business carried out by all, or any one of them acting for all.
Limited Liability Partnership – This is a hybrid of a partnership firm, and a company (since it offers limited liability, which is a basic feature of a company).
Other types of entities include Private Limited Company, Public Limited Company, Partnership firm, Section-8 Company, Nidhi Company, Producer Company, etc.
Various business entities often necessitate the discussion and signing of a contract. We offer the best service for the registration of your business!
When forming a partnership firm, the partners may decide to have an oral or, a written agreement. This written agreement is known as a partnership deed. Even though the deed is not compulsory, it is advisable to have one since it provides the business with various perks. It clears out the rights and responsibilities of each partner and helps in settling any future disputes that may arise between the partners. It can also be used as a piece of evidence in court in case of any disagreement.
Similarly, to register a company, steps have to be followed as per the guidelines of the Companies Act 2013. The major steps include:
- Obtaining DSC (Digital Signature Certificate)
- Acquiring DIN (Director Identification number)
- New user registration on government portal
- Incorporation of the company
The steps may seem like a mountain to climb! It’s not too tough of a task when you have Vakilgiri at your service. We serve you at every step until your company is registered and running. Our service even extends to changing the nature of your business during the life of your business, or even to close down your business (Yes even that is a hefty task)!
It’s time to fund your business!
Any and every business requires funds to operate. One cannot thrive without the existence of required money. It is the incentive that keeps a businessman going. So, how do you obtain the required funds easily and quickly? We help with that too! Below are some of the ways in which a business can acquire funds in the most simplified manner.
Acquiring funds from your friends and family, or using your own savings.
You must have heard of Kickstarter, right? That is an example of a crowd-funding platform. Through such sites, you can raise money from a large pool of people who wish to invest in your business. (even at the pre-revenue stage)
Affluent individuals with large sums of money are known as angel investors. They generally invest with some equity in return. They could help boost up your business.
These are the safest and the most popular source for raising funds. Banks provide you debt in return for an interest on the same.
Obtain the obligatory licenses!
Depending on the nature, size, and location of your business, you may require certain licenses and permits to lawfully carry out your business. The license is obtained through the regulatory authority for that specific issue. The licenses are business-specific and industry-specific.
A business involved in the manufacturing or sale of food products requires an FSSAI (Food safety and standard authority of India) license. It ensures the standard quality and safety of the food products. Similarly, a business involved in the export or import of goods/services requires an Import export code (IEC) from the DGFT Department.
Get a GST Registration
GST was introduced as an integrated indirect tax regime in 2017, and since then it has eased the way people carry out their business. It provides simplification of tax compliance which is imposed on the sale of goods and services and gives a trader the benefit of the netting of input and output GST.
Any business, company, or firm whose turnover is:
- More than Rs. 20 lakhs (supply of services)
- More than Rs. 40 lakhs (supply of goods)
is required to have GST (Goods and Services Tax) registration. Also, businesses involved in inter-state supply of goods, and those making taxable supplies by the agents and brokers of that taxable person, are required to have GST registration.
Such registration allows you to carry out inter-state trade with no or minimal hindrances, simplified tax compliance, improved credibility, and many more benefits.
Get your TRADEMARK and/or PATENT registered
Trademark is an intellectual property right that protects distinct names, signs, symbols, etc. It helps to protect one’s brand value and goodwill.
For example, when you look at ‘a black tick’, you are immediately reminded of only ‘Nike’. Why can’t any other brand use the same symbol? It is because of the registered trademark. Nike can bring a lawsuit upon anyone that uses a similar symbol or name.
A patent provides you exclusive rights over the innovation of your brain. It prevents others from making, copying, using, or selling your invention for the period for which you own a patent on the same. For obtaining a patent, the business has to approach the Indian Patent Office, which works under the aegis of the Department for Promotion of Industry and Internal Trade (DPIIT)
All these steps must sound confusing and lengthy, but don’t worry! You have us by your side.
We simply simplify all these legal burdens for you, and, help you meet all the criteria at the most affordable prices. Reach out to us NOW, and let’s set up (or, refurbish) your business together! Become a part of the most trusted legal family at Vakilgiri.