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Services for Startups

FOR STARTUPS

Individuals or a group of enterprising individuals always seek opportunities to set up a profitable business and then building it into a successful concern. Starting a business needs careful planning in terms of choosing the product / service, resources required like workforce, materials, infrastructure, study of the market etc.

An individual or entrepreneur setting up a business has to consider the following for ensuring that he/she faces no problem while setting up a business. They are:

  • Making a business plan
  • Choice of product / service
    • Business regulatory requirements
    • Selection of form of organization
  • Infrastructural set up
  • Selecting business location
  • Product pricing
  • Sourcing finance
  • Sourcing infrastructural set up

Business Regulatory Requirement

An entrepreneur must keep in mind the various regulatory requirements which must be followed while setting up a business. Public and private companies must adhere to all the regulations given under the Companies Act 1956.
The Act lays down provisions relating to:

  • Formation of a company
  • Powers of directors and managers
  • Responsibilities of directors and managers
  • Raising of capital
  • Holding company meetings
  • Maintenance and audit of company accounts
  • Powers of inspection and investigation of company affairs
  • Reconstruction and amalgamation of a company
  • Winding up of a company
  • Responsibility, power and control of the entrepreneur on the organization
  • Risk of the entrepreneur
  • Method of division of profit and loss

Therefore utmost care should be taken before registering the business as a particular form of organization.

Selection of form of Organization

The selection of the form of business is dependent on several interrelated and interdependent factors including:-

  • Nature of the Business:
    Enterprises / professionals providing direct services including restaurants, doctors, lawyers, accountants etc are generally formed as sole proprietorship or partnership firms. Medium and large manufacturing companies are generally formed as public or private limited companies.
  • Scale of Operations:
    Medium and large scale companies, catering to domestic and international markets are successfully organized as private / public limited companies. Small scaled companies are better organized as sole proprietorship firms or partnership firms.
  • Degree of Control Desired:
    An entrepreneur who wants a direct and maximum control on the organization can set up his company as a sole proprietorship. A company has a separation of ownership and management.
  • Capital Requirement:
    A business can be changed from sole proprietorship / partnership to a private public limited company as the capacity increases and also with the growth of the organization.
  • Comparative tax liability