The common question in the mind of any person is “How to start a business in India”. “Thing Big Think fast, Think ahead, Ideas are no one’s monopoly”. If someone who has already made up their mind to start a business in India would need to keep in mind how concrete the foundation of their vision is? One needs to be clear with the business idea i.e. what type of foundation one is looking for to be an entrepreneur. To start a business in India online there are various platforms to be an Entrepreneur like Private Limited Company, Public Limited Company, Limited Liability Partnership, Sole Proprietorship Firm, Partnership, E-commerce business, and a new concept of One Person Company.
One needs to be clear with the following 4 things in mind to start a business in India :-
- Business Idea
- Make your Business Plan
- Register and make it Legal
Before taking any move let us get a quick view of various platforms to start a business in India:
1. Private Limited Company:
A Private Limited Company in the eyes of the law is regarded as a separate legal entity from its founders. It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company.
2. Public Limited Company:
The Public limited company in India is a voluntary association of members which has a separate legal existence and the liability of whose members is limited. A Public Limited Company can either be an unlisted Company or listed Company on the Stock Exchange. Public Limited Company also enjoys wide options to raise funds through bank loans, the general public, and Institutional investors.
3. Limited Liability Partnership (LLP) Company:
A separate legal entity, in an LLP the liabilities of partners are only limited only to their agreed contribution.
4. Sole proprietorship firm:
A Sole proprietorship is a form of business entity where a single individual handles the entire business organization. He is the sole recipient of all profits and bearer of all loses. There is no separate law that governs sole proprietorship.
Partnership registration is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. It is owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium-sized businesses in the unorganized sectors.
6. E-Commerce Business:
Starting an e-commerce store is a dream for many aspiring entrepreneurs. Also with the enormous growth of e-commerce players in India and thanks to Internet connectivity, it is also an easy choice for Indian youth. Business registration is the first step towards your dream of setting up an online store. For registering your business, you need to decide which type of entity you should form.
7. One Person Company:
OPC or One Person Company is one of the easiest forms of corporate entities to manage. OPC is a hybrid of Sole-Proprietorship and Corporate form of business. It has been provided with concessions in compliance requirements under the Companies Act. It is a form of a company where the compliance requirements are lesser than a private company.
Various benefits of starting a business in India:
- No minimum capital requirement
- Separate legal entity
- Limited liability
- Minimum compliances.
- Builds credibility
- Various tax benefits
- Fund raising