How to starting a business in india from home – 6 Simply Steps Guide 2018
In India, the entrepreneur starting a business in india is increasing day by day with new innovative ideas. some entrepreneurs know how to start a small business but some people don’t know. So, the post is published for all those persons.
Documents Required to Start a Business in India
- Copy of Pan Card of Director(s)
- Copy of Voter Id Card of Director(s)
- Copy of Aadhar Card
- 2 Passport size photo
- 6 months bank statement
- Electricity/ water bill copy of registered office
- Rent agreement if the registered office is on rent
Types of Companies in India :
1. Sole Proprietorship
Sole proprietorship is the best and easiest way to start and operate the business. you don’t need to register your business with your state, unlike corporations or LLCs. In sole proprietorship includes some advantage and disadvantage. Startup grows with new business ideas in india.
For example 1. All the profit take owner but of course must the owner take all the loss there are no other options available to distribute the loss.
2. There is no need to register your business in any place but I don’t suggest you.
In partnership, there is necessary to minimum 2 number of partners and the maximum number of partner is 20. In partnership, there is no need to register your business. but I don’t suggest you. Rigister is not important but the registered company is better rather than the unregistered company. The partnership includes some advantage and disadvantage.
For example 1. All the profit share between all the partners in capital ratio.
2. All loss share between all the partner in capital ratio. Means the burden is divided into partners.
3. Limited Liability Partnership (LLP)
Limited Liability Partnership is a part of a partnership . in Limited Liability Partnership one more benefit as compared to a partnership. the liability is limited in Limited Liability Partnership this is the benefit in Limited Liability Partnership. in Limited Liability Partnership, there is no limit in maximum no. of partners. Limited Liability Partnership is compulsory to registered your business.
4. Private Limited Company
Private Limited Company is very time consuming to register your business. if you think to register a private limited company then you know the required document at the time of registration. Pan card, Adhar card, residential proof, digital signature, etc document required. Ministry of Corporate Affairs ask the name of your company then you tell not one name but you tell 3 to 4 names then Ministry of Corporate Affairs chooses the best name according to your best business ideas or business work. The minimum number of 2 Shareholders and 2 directors are required. The maximum number of Shareholders is 200 according to the Companies Act, 2013. Private Limited Registration to be renewed every year.
Cost and fees for Company Registration in India?
Sole proprietorship Rs. 4,799
Limited Liability Partnership (LLP) Rs. 3,999
Private Limited Company Rs. 6,299
Steps to Register a Company :
After deciding that which type of business you need to starting a business in india. then get ready to start the registration of your company. But in case you choose Sole proprietorship company and partnership then you don’t need to register your company. But I don’t suggest you. the registered company is better as compared to the unregistered company. If you start with small business ideas in india then the approval is really easy.
Step 1. Before the company registration, you need to require director identification number (DIN) by filling Form DIN-1.
Step 2. Digital signature certificate is also required before the registration system under MCA 21.
Step 3. Apply in the Registrar of Companies (ROC) for business name approval.
Step 4. Submit the Memorandum of Association and Articles of Association is very important for approval of your business.
Step 5. You also need to apply for Employer Identification Number (EIN).
Step 6. Pay all required fees according to the document.
Finally, all document submit and pay all fees. Now, are you waiting for the approval? The Ministry of Corporate Affairs answer after 2 or 3 days later. After the approval, you can starting a business in india.