- A business bank account is very significant asset to a small business as it helps to maintain the separate personal transaction from the trade. It shows more professionalism in front of clients to mention the trade name for payment instead of owner’s personal name.
How many types of business entity prevail in indian laws?
In India a person can choose from five altered natures of legal entities to start business. It comprises partnership firm, sole proprietorship firm, limited liability partnership, private limited company and public limited company. A type of entity commands about the organization structure and how that company is taxed.
How to select which kind of entity you should registered?
When starting a business, one has to select the type of legal structure to select for business. Generally this will depend on three primary factors are liability, taxation and record-keeping. Various other criteria are also to be considered like cost of formation and ongoing administration and flexibility..
What are the benefits from business registration?
There are various benefits that a person can avail from business registration.
Goodwill :In general, business having registration certificate has higher goodwill than non-registered business.
Limited personal liability : Members liability is limited to amount of shares purchased by them in case of company.
Financing: It is easier to raise funding in registered business than other forms of business.
Easy to start: It is easy to start a business in case of sole proprietorship firm.
Fulfill buyer norms: Big businesses that have supplier selection criteria incline to prefer to make sure the business must be registered than an unregistered business entity.
How many people are required to start a business?
It really depends on the type of business a person wants to start. If he desire to do a business as a sole trader and keep the profit to ownself then no another person is required. In case of partnership, LLP or private company, minimum two people are prerequisite to register the business but in public company, minimum requirement is three.
How much capital is required to introduce in business registration?
There is no minimum requirement of capital to register the business. The person can infuse the funds as per the size of business model. Formerly, the person had to pay a minimum of one lakh as a payment to start a private limited company. Observing this, many startups picked to switch to sole proprietorship. Nowadays, the government management has removed these criteria at the time business registration.
To whom, a person can contact for business registration?
Kodexive (a team of professionals) helps to register the business in an efficient manner. Startups become very attractive in india. In order to develop indian economy and attract talented entrepreneurs, one must have to register the business with us to avail the benefits.
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