Hello everyone!! Welcome back to our Blog. This blog is bit different from other blogs.
During Past decade, India is moving towards Encouraging startups & Entrepreneurship. With Startup India, the Modi government is providing huge benefits & encouraging Young entreprenerrus to build startup.India registered 72,993 startups that created 7.68 lakh jobs in past six years.Top 15 startups that are formed during past decade are ruling India now
We cannot imagine our lives without these startups(.Food(Zomato), Shelter( OYO Hotels), Travel( OLA Cabs))
Many people would like to Be their own boss instead being under Boss & start their own business.Due to lack of support and knowledge on how to form business & other complainces, they will not do the same.
To help you in understanding how to get business ideas & incorporate the business we are releasing this blog.
Lets get into the topic :
Sundar Pichai, CEO of Google said that Its idea that matters, not your power, not your background, not your money.If You have Powerful & Innovative idea you can do successful business
Jack Ma said that Powerful Ideas revolves around Biggest Problems
So Business is all about Identifying problems, Finding ideas/ Solutions to resolve the same
Here are the Major 5 steps to form a successful Business with powerful idea :
Many will ask suggestions from others to suggest some business idea, Business idea should be unique and should come from your own mind, only then you can take it forward innovatively and implement
Here is how you can form Business idea and make is successful
01.Identifying Problem –
Powerful Idea begins from identifying biggest problem that People are facing in the place that you live, in the filed that you are into, in the market that you are into. This requires lots of market analysis. Problem Should be most common for all & no one would have provided solution for that.
For Ex. Before OLA or Uber Cabs, People used to Face lots of challenges to ride within cities end up paying huge amounts to Auto Drivers. Idea of OLA Cabs resolved this. Thats the reason people love the idea of OLA Cabs. You should identify the problem that people facing now not a long ago for which already someone Identified solution.
02.Providing Solution :
Once you have identified the problem, you should be able to provide the Unique solution for resolving the same, People should love the solution that you are providing and be able to ready to buy your solution. Your idea should be Unique From all
For Ex: Once upon a time, We all used to face huge problem in getting access to internet. JIO gave us a solution to get access to internet at feasible prices and made all of our lives easy. People loved & addicted to JIO Sims & can be ready to pay any price that it demand now, because users cannot shift to other service provider that easily
03.Marketing the product or Idea :
Once you found the right soultion and implemented the same, you need to make the product or your idea to reach to the right set of people who need it, This is what we call it as Marketing. Right marketing leads to success of business, only then customer would be able to know your product or solution.
04.Pricing Decision
The most crucial decision that every person should consider in building business is pricing decision. Pricing the product or service so critical.When provide your services for free initially – People consider you as God and build temple. When you start charging fees for your services the same people will spread negativity and destroy the temple. Initial stages to build trust and to enter into Market one can charge less price and once you established in the market, you can increase the same.
05. Expanding the markets
Once your product or idea got established in a particular market or segment, start expanding to other similar markets where problem exists or Customers exists. It is always good to diversify into vast markets instead of staying in single market. As we dont know when a particular market will collapse or customers expectations will change
06. Building strong team
Success of Business lies in Choosing correct people to work with and maintaining relationship with them. Establish strong team, delegate tasks and expand the operations.
So Friends here is how step by step procedure in Building a business, we just try to Finish it quickly, there are many more to discuss about Entrepreneurship
Once you have identified what Business or service to start with, you need to figure out how to start
There are various forms in which one can run a business. It is very important to choose the right form of business. Most popular forms of business in India are:
- Sole Proprietorship
- Partnership Firm
- Limited Liability Partnership
- Company
You should be very careful while deciding the form in which you want to start your business. Each form has its own benefit. There are different taxability rules. Let’s learn a little more about each one
of them.
Sole Proprietorship
Sole Proprietorship is also known as Sole tradership or Proprietorship. It is run by only one person. The owner of the business is known as Sole Proprietor. There is no legal distinction between the entity and the sole proprietor. It is the simplest form. For starting a business you just have to launch your business. The owner receives the entire profit and has unlimited liability.
Partnership Firm
Partnership Firm is one of the business forms where two or more people come together to run,operate and manage the business. The owners are known as partners. There is a partnership agreement between partners. The nature of partnership is voluntary and contractual. The liability of partners is unlimited.
Limited Liabilty Partnership
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. It can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or unauthorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership. LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.
Company
Company is a separate legal entity and has perpetual succession. The owners of the company are known as shareholders and they have limited liability. The shareholder of a company could be any person. It may be an individual, LLP or a different company. A company can be a private limited company, a public limited company or a one person company (OPC). In India, you can incorporate a company through the MCA portal. Let us discuss the process of incorporating a company.
Incorporation of a company
Companies in India can be incorporated through filing SPICe+. SPICe+ is a part of various initiatives undertaken by the Government of India towards Ease of Doing Business (EODB).
SPICe+ form is an integrated webform and an advanced version of the previous SPICe form (i.e. e-form INC-32). SPICe+ webform offers 11 services by 3 Central Government Ministries & Departments. (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and three State Governments (Maharashtra, Karnataka, West Bengal), thereby saving as many procedures, time and cost for Starting a Business in India. Once the SPICe+ is filled completely with all relevant details, the same would then have to be converted into pdf format, for affixing DSCs. Thereafter all digitally signed applications can be uploaded along with the linked forms.
Conclusion
We have discussed various forms of business and how they differ from each other. So it is very necessary to understand your business and decide which form of business will be best suited for you.
In next series we will discuss on detailed procedure on how to register each entity and which Form is beneficial considering Tax & Other Complainces.
Thanks & Regards
CA Nani Balu
CA Meghana Sudraina
Content Writers – TAX DESTINATION
