Emmanual@123 (IT) 11 August 2014

Sme startup

Hello,

My name is Emmanual & am planning to start up a software company which deals with computer software & mobile applications. And its a normal start up, coz, am currently working in an MNC. Depending on the growth I will quit my job. Initially I am planning to get the job done with freelancers (Have contacts).

Now I would like to know about the business registration,

Which type of registration will be suitable for me PVT LTD or may be something else...

Also I want to know how can I open a bank account in the name of the company, do I have to show any kind of registration documents for that?

And according to your opinion which bank would be better for SME banking.

Thanks in advance.

Emmanual.

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3 Replies

Vaishnavi Bhaskaran (Proprietor) 11 August 2014

Firstly, it is important to check your employment contract for any restrictions that prevent you from engaging in any other business (Most companies, especially in the IT sector, have such provisions).

In the event you are clear on this front, my suggestion would be to start off as a sole proprietorship. In case it does well and you do this full-time, you can always convert to a private limited company or LLP.

Emmanual@123 (IT) 13 August 2014

I dont think so that i will have issues doing business while working, also if I start it as a proprietorship does it has more risk?? Also which bank is better for SME..

T. Kalaiselvan, Advocate (Advocate) 13 August 2014

It is always better to start the SME on proprietorship basis, establish and then go for partnership or LLP etc. To begin with and for other formalities, you may consult a local consultant for getting into the things properly as well as legally.