If you are thinking to start a business of your own or believe partnership might work well for you, then this article will help you understand the basics of the business world. There are different ways of doing business. However, entrepreneurs should always abide by the law and climb the success ladder step by step.
As soon as you are sure to enter the market with your unique ideas or methodology, you will require setting up a few things according to the state or country you want to work. Let us get back to the basics of how to set up your business.
The Ministry of Corporate Affairs handles all the legal procedure that needs to be done while incorporating a business in India. All the companies in India need to be registered under the Companies Act 1956. Before starting any business in the commercial market, it is necessary to get the company registered depending upon its type or capital invested.
Company registration will help in specifying the source of funding, partners involved, ownership, shares etc. making it easier for you to maintain transparency within the organisation. For registration, an application is filed to the Registrar of Companies along with the related documents like Memorandum of Association, Articles of Association etc.
In India, there is no formal procedure for registering a sole proprietorship. You need to open a bank account in the name of the firm and obtain few licenses required for the respective business. In case you want to start any private or public company getting it registered is a must.
In case you want to register your business as a private limited company there are a few pointers that you need to know.
• The company should have minimum two partners or directors with an individual DIN number.
• It should have a unique name ending with pvt.ltd.
• All the directors of the company should possess a DSC.
The registration process for a public company is different from that of a private company. This is what you need to remember while opting for a public company.
• There should be at least 7 members or shareholders in the company.
• At least three directors in the company are compulsory while one of them should be a resident of India.
• The name of the company should specify its business and have ‘limited’ at the end of its name.
• A registered or temporary office address along with the objectives of the business in which the company wants to operate.
• A DSC for checking the authenticity of all the legal documents.
If you are still exploring the right opportunity to begin your business endeavor, then you might need to think again. As soon as you decide your trademark, it becomes a stepping stone for you. The initial stage in the growth of any business is trademark registration, and it is necessary to get it done so that it is protected from any infringement.
Before deciding your trademark, it is always favorable to conduct a thorough search to get a distinct name or logo for your business. Trademark forms the identity of your company and is used to communicate with the audience, to market and promote the business.
Different business types are practised in India and the process of registration changes according to its nature. Many people go for partnership firm, LLP or even One Person Company and the requirements for them changes accordingly. However, it is always better to take help of a legal advisor before you initiate any of the legal proceedings.