Select Your Location
Starting and managing a business may be painful for startups if you are not aware of the right legal structure of your business and also compliance is necessary to know. In setting up a business, the 1st milestone is to choose the right legal structure for your business. In this article, we will discuss “how to choose the right legal structure for the business in India?”
Answer – The business registration is mandatory whether you are planning to start a small business or large scale business. If you are planning to start a small business simply go for Proprietorship apply for GST Registration or if you are willing to do business under partnership then simply go for partnership registration & GST Registration if you expect annual turnover more than Rs. 20 lac.
If you are willing to have a corporate structure then it is recommended to register your business as a Private limited company. In private limited, it is easy to raise funds from Angel investor / Venture capitalist. Even you can hire better resource in a private limited company. Private limited is the best business structure in India. Other alternatives of the private limited company are Limited liability partnership (LLP) registration. However, in LLP structure of the business, you will not be able to attract venture funds/ Angel investments.
Company Registration in India is 100% online process hence no needs to visit any government office you just need to provide Aadhaar, pan card & Election ID card along with bank statements or any utility bills of two people to form a company. Team Enterslice we will handle your end to end process. From Name approval of the company, it will take 5-7 working days to secure a certificate of registration from the registrar of companies.
We would need minimum 2 directors to form a private limited company and one person in case of OPC (One person company) the same person can be directors as well as members / Shareholders in the company. The maximum members in a company can be 200 and maximum directors 15.
The director should have attained the age of 18 years; the directors can be both Indian citizens as well as foreigners.
There is no minimum capital requirement hence it may be Rs. 100 to any amount. However, in normal culture usually, for company registration minimum capital we keep 1 lac to 10 lac as Authorized share capital.
Authorize share capital is the maximum amount of Capital that is available to be issued / available for allotment in the form of equity share capital or Preference share capital.
Up to 10 lac authorize share capital government fees are same Approximate Rs. 1000 except company registering in Punjab, Kerala, and MP. In Kerala, Punjab, and MP there is an additional Rs. 8000 fees payable to the government. Hence, Package for company registration in these states will increase to Rs. 19000 from normal Rs. 11000.
If your company name is unique, you can finish company registration in 7-10 days.
The timeline is based on time documents collection.
Company registration is valid for lifetime subjectively you file your annual returns on time before its due date 30/09 of following financial year.
Yes. Foreign national can form a company in India but mandatorily he should have minimum one Indian director (Non-Executive or Executive) usually the consultant who is handling your company registration can provide the services for non-executive directors.
As per the companies act, every company proposed to be registered in India should have its official address to receive various correspondence like notices forms a government, correspondence from bank I.e.
The Stamp duty payable on authorized share capital shall be calculated based on the registered office of the company. The registered office may your residence (Own and rented) or a commercial space
Usually, company registration services offered by CA/CS includes the following:
In order to sell goods or services, it is recommended to apply for GST Registration and GST Registration can be obtained after bank /ac is opened of the newly incorporated company. However, GST Registration is only optional up to annual turnover Rs. 20 Lac in a financial year. But in the interest of business, it is recommended to apply for GST Registration. After GST Registration, you can take inputs on all goods or services you purchase from the market for your business use like computers, furniture’s e.tc. you can use your input tax and can utilize when you are in business. After GST Registration, the next step is to start sell of goods and services, then you need to file GST Returns on a monthly or quarterly basis depending upon the turnover of the entity.
After Registration of a private limited company, your next milestone was bank account opening then GST Registration before you start the purchase of assets and then you start selling of goods or services. The most critical things which usually startups miss is to apply for trademark registration. When you have a plan to set-up business and invest your hard-earned money it is necessary to go for trademark registration in a minimum 2 to 4 class. Need to carefully study the trademark class before filling application for TM. Always try to hire an agency who invest time in research before filling of the trademark application.
For a business with a turnover of less than 1 cr in a financial year, the ROC Fees shall be Rs. 3000 to 5000 in a year. Audit fees may be in the range of Rs. 25000 to 100,000 depending upon the experience of the statutory auditor. GST returns & Compliance may cost you around Rs. 20,000 in a year. In total, the annual maintenance cost will be Rs. 50000 to 80,000 p.a.
Up to Rs. 1 cr turnover it is recommended to use quick books 100% automated Accounting software. Its cloud base accounting software, you can authorize your CA to view the statements and you can operate it without the much knowledge of accounting. Simply watch Quick books YouTube channel, you will learn everything in just 3-4 days. Quick books offer a high level of reporting, MIS, Dashboard, Real-time P &L, Balance sheet, bank statement too updated on a real-time basis.
Auditor Appointment – The statutory auditors of the company must be appointed within 30 days from registration of the company
GST Returns – GST returns you can file on a monthly basis or on a quarterly basis if your annual turnover is less than 1.5 cr.
Income tax returns – As a business, you need to calculate your profit/loss for the financial year ending 31/03 and mandatorily income tax returns of your company must be filled before 30/09 of following financial years.
ROC Returns – ROC Returns is mandatory it should be submitted online by or before 30/09 of following financial year. In ROC returns you have to submit audited financial statements, Auditors report, Director’s report and updated shareholding pattern of the company
We suggest not to wait for a last-minute rush, hire a reputed CA Firm / Consultancy firm who will take care of your legal structure and compliance issues and focus on your business.
A company who is registered in India is eligible for registration under the startup India program
Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.
On 18th May 2023, the Securities Exchange Board of India (SEBI) released a Consultation Paper o...
Infrastructure and real estate have been regarded as India's "sunshine sector" since the turn o...
On 22nd May 2023, the Central Board of Direct Taxes (CBDT) issued a new circular under secti...
Anyone can have different sources of income. With globalization and the opening up of economies...
The Reserve Bank of India (RBI) is crucial in regulating NBFC, including branch openings and cl...
In India, Non-Banking Financial Companies are subject to certain restrictions from taking publi...
It's usually a good idea to diversify the assets in your financial portfolio, especially during...
A nation is being built by the non-banking finance company through the development of wealth, t...
A corporate entity known as a portfolio manager complies with a contract or agreement with the...
Identifying and analysing risks associated with individual portfolio investments, such as equit...
Are you human?: 2 + 9 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
This whole discussion will be about Annual Audit & Compliance requirements pertaining to the Foreign-invested e...
14 Feb, 2018
In the saturated labour market, there is always a dearth for skilled men and hence the business organizations inves...
04 Dec, 2021
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!