As you all may be knowing that there are different ways to start a business/startup in India
- Sole Propreitorship (Single person)
- LLP (Limited Liability Partnership, 2+ persons)
- Company (Private Ltd, 2+ people)
Based on your requirement, you can choose any of the above. If you start business without registering, you can’t get many benefits a regular registerd business gets like credibility, value, financial support, govt schemes like startup India, etc.
A single person is the owner and manages the company. This person is responsible for paying any losses in the business or his assets are sold to settle the debt. Tax is calculated as the tax on a normal income.
2 or more persons are the owners and take collective decisions. Assets of partners are safe and can’t be used to settle the debt. A flat 30% tax rate is applicable for LLP. Financial audit is not required if total income is less than 25 Lakh rs.
2 or more persons are the owners and take collective decisions. Assets of partners are safe and can’t be used to settle the debt. A flat 30% tax rate is applicable for LLP. The only difference from LLP is that Pvt companies can have equity and can accept funding. Financial audit is necessary.
Registration of companies is done entirely on MCA (Ministry of Corporate Affairs) website. Now the questions come how we can register any of these free. I will give you a hint – connections.
I will cover the following details in the coming posts. I will especially take the example of LLP.
- Free Registration
- Registrations steps (may be divided into several posts, even though it is simple)).
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