By Mashum Mollah
Numbers of businesses are created to provide for the needs of the people who are in search of reliable solutions and services that can help them with obtaining satisfactory results. These organizations and businesses tend to take care of the clients and serve them properly. Some businesses are established to support small and newly developing businesses to improve and expand their functions, guiding them to get stable and much bigger. With this aim, efficient entrepreneurs continue to discover new ways of starting their own ventured which incapacitates them to have more competent and better businesses.
This is one of the leading reasons for increased need for company registration. Registration of a company is imperative in order to make their acts legal and to understand the rules of the business world. It is also indispensable to assist entrepreneurs in making their business much more stable and encouraging them to enhance their influence as they start the business. When you know your competition, you are sure of creating a venture that can metamorphose into one of the most trustworthy corporate business in near future.
Before starting a business, the entrepreneur must be sure about the ideal type of registration, their business need. There are a number of registrations available like Private Limited Company, Limited Liability Partnership, One Person Company. You also have to be sure about the apply trademark online on behalf of company. If the mark you use is registered, a lawsuit can be filed against you for Trademark infringement.
Questions you should ask while choosing a prompt business structure:
You need to question yourself these questions of clarification so that you are aware of registering a company in India.
1. The number of owners your venture will accommodate?
If you are planning to own the business and you have the initial investment required for starting the venture, you should then go to One Person Company. Au contraire, if you are thinking of having 2 or more directors or owners for the business and are also require them to bring investment for the business, it is best if you go for Limited Liability Partnership or Private Limited Company.
2. Ready to bear the liability of the business?
Venture structures like One Person Company and partnership have immeasurable liability. If there comes a case of default on the loan from the company’s side, the entire sum of money will be retrieved from you and the profit sharing partners. The risk of losing your personal assets is quite high in this case. LLPs and Companies have limited liability. This infers that your responsibility is solely restricted only to the contribution’s amount or the share’s value.
3. Income Tax Rates which are applicable to the business :
The tax rate applicable to One Per Company and HUF (Hindu Undivided Family) is the normal rate with no extra tax. Also, in the case of One Person Company or sole proprietorship, the income of the business is combined with the person’s other income except for the business. In the case of entities like a partnership, the tax shoots up to 30%.
You have to assure yourself to choose the best structure. You can also seek out the advice of expert’s guidance for this.
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