Few of us immediately on finishing school education or after obtaining a professional degree, get a job for making a living. The pay package depends on so many aspects evaluated about the candidate in the interview by the panel. Many people wish to become entrepreneurs. Instead of going to a job, they create a source of income and turn into an entrepreneur, paving their own ways and means to start a business, or to take off from their parents or ancestral trade, for their fast upliftment of the standard of their life. Some do not want to work for someone rather they would love to work for themselves and inch towards their own dream / goal. Some of them achieve in a big way and for some achievement is yet to be dawned on them in their own business. Precisely
they wish to be bosses in their own way.
Proprietorship: The proprietor and the business are one and the same
Partnership: If two or more people joint together and starts up a business
LLP: A separate legal entity in partnership with share holders
Private Limited: A separate legal entity formed with minimum share holders
Public Limited: A separate legal entity with public at large as share holders
Each type has its own merits and demerits. Various criteria has to be looked in to for choosing an appropriate business type. Once the Company is formed, it's just like a just born baby, several other legal registrations are required to give a complete status.
The legal requirements varies depending upon the field of business activity, it varies from industry to industry. Some of the basic things that are required in common are:
Now the just born baby has grown high, there are several other care that need to be taken as that of IT returns submissions, protecting confidential information from staffs, having business relationship with other organizations via agreements, mergers, acquisitions etc.
Out of these things, mergers and acquisitions plays a vital role in big grown organizations.
Business acquisition and merger are the process to strengthen our own organization with the goodwill or the strength of the acquired company, in simple words it’s a corporate strategy.
Once you have chosen the field of interest, the next step is to decide the business structure ie. the type of ownership of the business.
Do you want to start a new business in India?
Before starting any business, certain basic questions will click your mind such as
What type of organization to be formed?
What is the procedure for setting up?
What is the post set up actions?
What are continuous essentials for business?
SERVICE & TRADING
IA company is registered in accordance with the Companies Act and is a separate legal entity, distinct from its shareholders, directors and managers. The liability of the shareholders is limited to the amount paid or unpaid on issued share capital. A company has unlimited life and no limit is placed on the number of shareholders.
Foreign entity may set up subsidiary companies in India which can be private or public limited, with or without limited liability.
A Limited Liability Partnership, popularly known as LLP combines the advantages of both the Company and Partnership into a single form of organization. LLP is a partnership with liability of partners limited to contribution. It is also a Body Corporate means partners and LLP are distinct entity. LLP is formed pursuant to LLP Agreement between the partners.
Partnership is combination of two or more proprietorships, who have agreed to pool their resources for a common objective and with a view to earn profit. Partnerships are established pursuant to partnership deed between the partners and they can be formed for particular time duration or particular project and according to the will of the partners.
A sole proprietorship is the oldest and the most common form of business. It is a one-man organization where a single individual owns, manages and controls the business. Sole Proprietor is run and managed by its owner and he is primarily responsible for its success and failure. The capital to get the business going must come from either you or from loans.
Companies Incorporated outside India can establish their Liaison Offices in India.
Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up a branch office in India with specific approval from Reserve Bank of India to undertake the permitted activities only.
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