Before to start any business we must know that what is the meaning of Business. Business is not just selling or Buy any product or Services or not just exchange anything. Business is quite more and large topic to not only discuss even understand. To start a new business is not just simple to just buy any product from somewhere or manufacture any product and just sell. These consist of a long process for it. Well, very first thing comes is just to understand the term Business and it’s the necessity.
“Business is work relating to the production, buying, and selling of goods or services, not for once even on regular basis, for consideration in terms of money or another product.”
“An organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.”
When we have understood the sufficient knowledge of Business term the second comes what we want to do….? Like what kind of business we want to do? What will be our product? How and from where we get sufficient funds for starting up? There are so many questions may arise in our mind.
Let discuss it,
Start a business for Indian Owners.
There is five option for us out of which we need to choose one It is the category of our Business.
Valcus Provide Some types of Businesses we can do are…
- Limited Liability Partnership
- One Person Company
- Private limited company
Take them one by one
!—Proprietorship, A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. A sole proprietorship is one of the most common forms of business in India, used by most micro and small businesses operating in the unorganized sectors. In this case, there is no need for huge capital or investment.
2—Partnership, A partnership firm is an organization which is formed with two or more persons to run a business with a view to earning the profit. Each member of such a group is known as a partner and collectively known as a partnership firm. These firms are governed by the Indian Partnership Act, 1932. Where we may need a huge capital or investment. One more thing is as compare to Proprietorship, Under Proprietorship we are the only one who has the complete control over our business but in case of Partnership we want or not we must take our Partner’s consent but on the other hand we are not the only person who has to bear all profit and loss of the Business. This will be distributed among the partners in the pre-decided ratios and as per Partnership ACT, 1932, Equally.
3—Limited Liability Partnership, A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have Limited Liabilities. It, therefore, can exhibit elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner’s misconduct or negligence. LLP is a great combination of the right and duties of Company and A Firm.
4—One Person Company, The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. In firms there is Proprietorship In Companies the One Person Company is the same. Where the owner is the only one who had complete control or right on the company. No one can interfere.
5—Private Limited company, A private limited company, or LTD, is a type of privately held small business entity, in which owner liability is limited to their shares, the firm is limited to having 50 or fewer shareholders, and shares are prohibited from being publicly traded. A company becomes an independent legal structure when it incorporates.
Starting up a new Business for Foreign Owners
When the Owner is outsider or foreigner
Then the categories of him/her are as :-
1- Start company- foreign Individual, Foreign ownership or control of a business or natural resource in a country byindividuals who are not citizens of that country or by companies whose headquarters outside that country.
2-Subsidiary of Foreign Company, , Reserve Bank of India allows 100% FDI in many of the sectors in India under the automatic route, the process for ownership of shares of an Indian Company by a Foreign National or Foreign Entity is simple. A Wholly Owned Subsidiary company is an entity of which 100 per cent shares are held by another company.
3- Branch office of foreign company, Every Branch office registered with RBI shall get itself registered with the Ministry of Corporate Affairs, It is a registration by the Branch office as a establishment offoreign company in India. On such registration a CIN i.e., Corporate Identity Number is allotted by the Registrar of Companies.
4- Liaison Office Registration In India, Setting up a liaison office in India. Foreign companies can open a liaison office in India to facilitate and promote the parent company’s business activities, and act as a communications channel between the foreign parent company and Indian companies.
5- Project Office Registration in India, The RBI has issued general permission for the establishment of a Project Office by a foreign corporation in India, provided a written agreement for execution of a project has already been signed between the foreign company and the Indian government or any other private party.
- Foreign Direct Investment in India, Foreign direct investment(FDI) in India is a major monetary source for economic development in India. Foreign companies invest directly in fast growing private Indianbusinesses to take benefits of cheaper wages and changing business environment of India.
- Public Limited Company, A limited companygrants limited liability to its shareholders and, to a lesser extent, its management. Being a public company allows a business to sell shares to investors in order to raise capital.
- Section 8 Company, Section 8 Company is named Section 8 of the Companies Act, 2013, which pertains to a established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Therefore, Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes.
- Trust Registration, A trustcan be created by execution of a trust deed; there are two types of trust. A public trust (charitable trust) is created for the benefit of the general public whereas a private trust is created for the benefit of a particular group of individuals known as the beneficiary.
- Society Registration, Societiesare usually registered for the advancement of charitable activities like sports, music, culture, religion, art, education, etc. Society Registration, under, The Society Registration Act, in India, lays down certain procedures for the sake of society registration & operation.