How to Register Startups in india (single person)

As India rapidly becomes a #Startup Capital in the world,  many young guns are really looking for starting their own ideas into business

how to start own business in india
 but they don't known how to proceed and what is the legal procedure to start a business in India.. Today i am sharing those in my article !

How to Register New Business or Shop or Proprietorship Firm in India for startup

if you want to start a new online or offline Startup, sole proprietorship firm is the best option for you. its a very simple business formation for small entrepreneurs who want to test their ideas or start with small capital with low cost of formation.

Basic Steps to register sole proprietorship firm for Startups in India

#Advantages of Proprietorship Firm(Single Person Owned Firm)
  •     1 Person Required as Single Entrepreneur.
  •     Single Owner of the Business.
  •     Easy to Start and Easy to Close.
  •     Complete Control.
  •     Lower Cost of Formation and Compliance.

#Disadvantages of Proprietorship Firm
  •     Lack of Resources.
  •     Unlimited Liability.
  •     Lack of Credibility.
  •     Can not raise funds easily.
  •     Can not add Partners.

As a sole proprietor, main objective of the firm is opening a current bank account on the name of business. so basically most of the banks ask for any legal certification for the business/Startup.

Mainly Business startups are of two kinds
a) Services Based Business/Startups   b) Product/Manufacturing/Sales Business
business types for indian startups

a) Service Based Business -These type Business are providing services Online and Offline to users.for Example Startups Ideas like -
 Website Development/Affiliation marketing/ Digital Marketing/Consulting/ECommerce Marketplace/Marketplace Business Models/Tickets and Hotel Bookings/Classifieds Websites 
or any other type of business which providing the services online example are JustDial/Shuleka/Makemytrips(All these are becomes Companies but here included for example purpose only).
# Service Based  Business mainly need 2 thing open a current account.
  •     Service Tax Certification
  •     Chartered Accountant Certification regarding nature of business. (*Required by some private banks)
b) Product/Manufacturing/Sales Business -  
These type Business/Startups are selling any product to customers through own website or offline. They are selling VAT* applicable products to consumer so these type startups fall in this category.
Example are- ECommerce Website/Importer/Exporter/Selling on ECommerce Marketplace i.e Flipkart/Snapdeal or offline trading business.

#Product or Sales category business needs 2 things -
  •     Shop Act License ( In the Madhya Pradesh or Maharashtra or Gujarat its called Gumasta and in WB State its called Trade License)
  •      VAT/Sales TAX/TIN Registration.   

###Common Documents Required in Both above cases register as Proprietorship Firm :-
  •     ID and Address Proof as Pan Card/Passport/Voter ID/Aadhar Card/Driving License Copy of the Proprietor.
  •     One Business Place Address proof :-

  •     if Property on Rented :- Need Rent Agreement and NOC from Landlord.
  •     if Property is own :- Need Electricity Bills or any other Address Proof.

Note : Proprietor Business place and home place can be same
    For VAT : - Needed Security Amount as Fixed Deposit or needed minimum two  surety of dealer which already registered in that state VAT Registration.

Note : In Some State Security Amount or Surety is not applicable like in Delhi but in Most of the State its applicable and FD Amount or Guaranteed Amount Very as State wise Rules and Regulations.

How to Register New Proprietorship Firm Online ?
a)For the VAT/CS Registration or Shop Act License in some state user can apply online but again problem is during the Physical verification officers takes the bribe or raise the issues. 

b)For the Service Tax Registration user can apply yourself via Online Procedure but problem is user have to submitted physically basic documents and professional documents in the department.

Next time i will share Legal procedure to Start a business in Partnership AKA Partnership firm in India!

Let Make India a Business Hub!!

1 comment:

Do you have any opinion, please leave a comment or share this post in your social network Also feel free to contact us OR drop your problem below in comment section.!!

Related Posts Plugin for WordPress, Blogger...