Every business is born from an idea. An idea that aims to provide something different, something unique. A monetizable solution to a problem that people are willing to pay for. But only a few business ideas make it past the first phase – Becoming real.
Over 99% of business ideas never get past that barrier. But if you’ve made it this far, you are in that 1% willing to take the next step and move forward.
Registrations are a core part of what we do here at Mukunda Shiva and Associates. Businesses come in all shapes and sizes. From sole proprietorships to Private Limited Companies. But they’re all made official after registration.
But registrations are not as simple as they might seem. Based on the type of business, its nature, scale, purpose, impact and many other factors, the clauses and requirements associated with the registration of different types of businesses are highly unique.
That’s where we come in. Instead of having to worry about what paperwork you need to file, what permissions you need and other blockers, all you need to worry about is what you need to do to make your business work. Leave the complex procedures to us. We’ve been doing it for 20 years and we can seamlessly take care of it for you.
It’s all you. A sole proprietorship is ideal for those who want the organisation to be under just one person. That means that the business and the owner are one and the same and aren’t separate entities.
Ownership is solely owned by an Individual and no conflicts
Business owner has a power to control the business operations.
Owner will receive all the profits and bear all the losses.
Easy to setup
Owners and business are referred to as one of the same entities (no separation)
Cannot add another founder in business
Unlimited Liability
No synergy
If two or more people want to come together and start a business, getting yourself registered as a partnership firm under Indian Partnership Act, 1932 would be ideal. 10 partners is the upper limit for a banking firm, but for others, the limit is 20.
Two or more individuals share cost & responsibilities
Terms of partnership recorded in partnership agreement
“Silent partner” concept is possible
Easy to setup
Synergy is high
Share of profit is possible without being subject to tax
Liable for the action of another partner
Unlimited liability
Benefit of slab rate taxation is not possible
LLPs or Limited Liability Partnerships are entities separate from the owners. It’s a hybrid organization that falls somewhere between a partnership firm and a company. It is an attractive option due to limited liability and the flexibility of organizing internal affairs as a partnership based on a mutually arrived agreement.
Two or more individuals share cost & responsibilities
Terms of partnership recorded in partnership agreement
“Silent partner” concept is possible
Easy to setup
Synergy is high
Share of profit is possible without being subject to tax
Benefit of slab rate taxation is not applicable
More legal compliances required than simple partnership Firm
Regular and annual filings with MCA applicable same as body corporate
Audit under MCA will be required after some milestone
Get Registered under the Company’s Act 2013. Ideal for small or medium businesses wherein the liability of a member is limited to the shares held by them.
A separate legal entity
A company is ruled by its charter documents of MOA & AOA
Those who buy shares are Shareholders
Board of Directors runs the corporation
Brand Protection
Aids long Term Planning
Looser Corporate Governance
Shareholders have limited liability, not responsible for debts.
Preferred structure to bring in more and more investments
Double taxation on Net profit if distributed as Dividend
Various restrictions like taking loan or giving loan from unrelated person is prohibited
Regular and annual filings with MCA applicable
Winding up is not easy. Shares cannot be quoted in Stock Exchange
With a public limited company, you can acquire share capital from the general public in large scale. This is ideal for mega corporations with big operations and objectives. Liability here is limited to the shares owned by a member.
Raising capital through public issue of shares
Other Finance opportunities
Growth & expansion opportunities
Prestigious profile & confidence
Shares are more easily transferable
Compliance costs are very high
More vulnerable to a hostile takeover if a majority of shareholders agree to a bid
Initial financial commitment is higher
Ownership & control issues
Not suitable for smaller organizations
GST Registration GST stands for Goods and Services Tax. GST or Goods and Services Tax is an indirect taxation system in India. It was started in India in 2017 with several purposes. GST Registration is basically an application form to register under GST. Every business as per the eligibility criteria has to get GST Registration and formerly submit taxes through GST Return Filing .
GST reduces the number of Indirect Taxes.
The GST Registration is completely online.
The number of GST Compliances is less so you don’t have to invest a lot of time for GST Return Filing.
Ease of doing inter-state business using e-commerce operators after getting GST Registration in India.
GST has regularized unorganized business sectors in India through online procedures.
It provides a single GSTIN that can be used for all the aspects of GST.
It offers a composition scheme to pay taxes at a fixed rate and reduce the tax liability and tax rates..
The threshold limit of GST Registration is quite high i.e. Rs. forty lakhs annual turnover or Rs. twenty lakhs annual turnover for special states under GST.
You can claim Input Tax Credit easily after fulfilling the compliances.
It is easy to detect tax evasion under GST Registration.
The GST has increased the business operational costs.
Late GST Return Filing can result in penalties. You can use Tax Panchang to remind yourself of the due dates of all the tax compliances.
The GST Regime is strict and without filing a GST Return you can not generate e-way bills. Thus, you can not transport your products inter-state without enrolling under GST and filing returns on time.
Multiple businesses find it cumbersome to maintain online records, generate invoices, etc.
It is still difficult for businesses in remote areas to enroll under GST.
It has increased the burden of compliances.
The easiest way to get your Personal Identification Number (PAN) or Tax Deduction and Collection Account Number (TAN) is by getting it done with our help. Our dedicated branch has processed and delivered hundreds of PAN and TAN registrations and we can deliver it to you with 0 hassles. You are eligible for TAN if you need to deduct tax at source for payments like rent, salaries or payments to contractors or are a business branch or non-profit that’s making payments above a certain limit.
1. A micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
2. A small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
3. A medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
The Karnataka Shops and Establishment Act regulates the operations of shops and commercial establishments. The Karnataka Shops and Establishment Act was introduced to regulate the hours of work, annual leave with wages, wages and compensation, employment of women and children and other aspects of shops or commercial establishment.
Trade license is a permit issued by a municipal corporation granting permission to a person or entity to carry particular business at a specific premise. It ensures that the citizens are not adversely affected by health hazards and perils brought forth by the improper conduct of trade. It is a system that also ensures the manner of business pursued by a company is following the specified rules, safety guidelines and standards.
Factory License, FSSAI, Trade Mark License, Trust Registration, Association Registration, GEM Registration, ICEGATE, Society Registration, FRRO, PT, PF, ESI etc..
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