Thursday, April 14, 2016

What is the procedure to register a startup company in India and how much will it cost?

Any Business is Registered as-
1) As a Firm    2) As a LLP    3) As a Company

1) As a Firm :-
Firm Registration is also 2 Types
a) Sole Proprietorship Firm- its a very simple process to start any business in India. if you are single owner then just go to nearby Any Bank and say them open your current bank account. in Proprietorship main Objective is "Current Bank Account".
every bank needed some documents as per RBI Guidelines i.e
need any of the followings :-
VAT Registration- if you dealing in products. example- wanna sell on Flipkart, Snapdeal etc.
Compliances say that if your turnover Exceed 5 Lakhs then it's mandatory to VAT Registration. its a state tax registration.  so compliance are very on State by State. its cost around 5k to 10k and in some states its need security also like FD.
*Service Tax Registration - if you are a service provider then you have to register under service tax registration. Compliance say that if your turnover exceed 9 Lakh in a year then you have to register under service tax registration. its cost around 2k to 4k.
*Shop Establishment Licenses- if you have a shop or office then you take this licenses. its a very cheap as compare to VAT or Service Tax.
Certificate from Chartered Accountant regarding nature of business :- in some banks they just need a Certificate from CA regarding the nature of business so its a very simple process to open a current account. 

Summery of Proprietorship- Just Must Visit nearby Bank and ask the bank policy to open current account. 
Read More Here- How to Register Sole Proprietorship Firm 

b) Partnership Firm :- its a very simple process if you have parnters but its a old tradition form of partnership. just go to nearby any notery and purchase a Stamp Paper of 500 Rupees and drafting your legal terms and conditons of partners. thats sit.
but if you want to register it then go to nearby Registrar of Firms with your partnership deed and give to bribe to babu and regsiter it then Apply for PAN & Open Current Account.
Cost - Near 3k to 4k.
Checkout more here complete procedure- How to Register Partnership Firm In India

Summery :- Parntership Registration is best if you have partners and your budget is just less than 5k for registration.

2. As a LLP :- LLP is the new concept in India. in simple words its a mixture of Parntership and Company so its has a feature of Parntership and Company. its a best for Startups. its has many advantages as compare to private limited company. the main advantage for startups is capital requirements and compliances at the year ending. in a company many compliances have to filed to MCA but in LLP just 2 statements filed to ROC.

Costing- near 9k to 10k
Checkout the Process here- LLP Company Registration for Startup in india

Summary- It's a best for startups which have partners and wanna register under partnership and take the advantage of Company.

3) Company :- as a Company your startup is registered 2 types.

a) Private Limited Company- Old Trend in India. private limited company require min 2 director and 1 lakh share capital and more compliance.
It's a best for which startup wanna raise the funds from the investors. and sell out their share in the company.
Costing- nearby 14k to 16k and more than 20k in some state like kerala or Punjab
Summary - it's a best for which wanna raise funds from investors and grow the business on global level.

b) One Person Company- same as above. just require min. 1 persona but capital is the same as 1 lakh rupees.

Summary - 
*if your budget is less than 5k- register under proprietorship or Partnership firms then when your business is grow, convert into LLP or Company.
*if your budget is more than 5k and but less than 10k - register under LLP then if you wish that you want to choose pvt ltd then go for it for expansion.
*if your budget is more than 16k and do wanna serious business then choose company as pvt ltd or opc and hire a good CA's who's take care of legal compliance of your company.

1 comment:

  1. Thank you for sharing such a wonderful information. It is a very informative and helpful post. this information is use able for people and society.

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