TaxUdyogStart A Business

Are you new to the finance world? Are you having trouble deciding which business style you should prefer for your business? Are you wondering how to start a business? Don’t worry we got you covered. At Taxudyog, we take pride in making the complex legal terminologies easy for you so that you can kick start your business without fearing the complex terms. Our aim is to help you understand the various ways in which you can explore the different possibilities of the financial world. In today's dynamic environment, there is a pool of opportunities lying for you. But are you aware enough to grab them? Let's make you understand how we can help you start a business?
Sole Proprietorship
Partnership Firm
One Person Company
Private Limited Company
LLP Registration

How we can help you start a Business?

In this fast pacing world, we are the right people you have encountered because we help you grab the right business opportunity.
We are associated with IR Global
What is IR Global?

IR Global is a global platform offering various financial, accounting, and legal services to people from all walks of life. It is a group of multi-disciplinary professional service network that is built to cater for the needs of people who are interested in getting accounting or financial aid around the world. With its existence in 155+ jurisdictions and the expertise of over 70 unique practices, they aim to provide the highest quality work with maximum customer satisfaction. It was established in 2010 and since then it has only grown and now they are a proud community of over 1000 members worldwide.

How can we help you grab the right business opportunity?

To help you with the right business opportunities, first, we’ll get you in the details of how to look for the right opportunity. As people say, there are always blessings in disguise. To give you an example of this, like in the covid era a lot of people switched to remote working. Thus, they were stuck to computers for hours and a lot of companies were benefitted from this who already had a virtual presence. Companies that provided video-conferencing services had a boost in their shares and their market value skyrocketed.  This is a good example to grab the right business opportunity at right time. At Taxudyog, we help you discover such services and widen your horizons of expansion. We are proud to tell you we have helped several small business owners start their businesses and they are all proud members of Taxudyog.

Start a Business with TaxUdyog

Now that you have a little knowledge about Finance world, are you wondering How to start a Business? We got your back on this. So, let's get into the technicalities of starting a business.

How to start a Business?

To start a Business, the first and the very important thing is Market research. If you have your research of the market, you can pretty much ace everything that you have on your plate. Good market research has characteristics that include scientific methods which are observation, hypothesis, prediction, and testing. It helps the owner receive helpful information about the market he or she wants to put his or her foot into.

Good market research can never hurt anybody. If your research has creativity, it can also help you get more results than you expect and that is obviously the cherry on the cake. The more results you have, the better understanding you develop of the customers you want to cater for the needs of. To already have a business plan is another good way to start a business. in this way, we can help you by suggesting if it’s the best plan and if it’s not then we can help you modify it for the better. Having required funds and the knowledge of the source of funds is another important aspect that is considered white starting a business. Taxudyog helps you at every step from market research to choosing your business style.

From introducing yourself to the finance world to now having all the required steps for your business, let’s now understand what are the various business styles available for starting a business.

Private Limited Company

A private limited company is a type of business that enjoys uninterrupted existence, has limited liability, is easy to do and has free transferability of shares. It is a separate legal entity and the partners that are involved in this has a limited amount of shares that are held by them.

Sole Proprietorship

It is the type of Business structure where one person has control over the overall activities of the business and the risk that it has is also endured by the same person.

Partnership Firm

Here, two or more people are involved in conducting all the activities that are related to business. Thereby, the profits are shared between the two or more partners that are involved and the risk and losses are also shared amongst them.

One Person Company

A lot of people actually get confused between a sole proprietorship and a one-person company. While these two are two different things, it can be really confusing for people at times.

A one-person company is the type of company that is incorporated by one person only but the company and an individual are two different legal entities and the same is not true for sole proprietorship as there is no difference between the business and the owner

LLP

The full form of the LLP is a limited liability partnership and as the name states, LLP is a type of business that offers the limited liability of a company and the flexibility of a partnership. The partners involved in LLP have to contribute according to their agreed contribution. It is a separate legal entity that is a legal business structure designed to offer flexibility to the partners involved.

Benefits

Liability

Tax Rate

Ease in Registration

Separate Legal Entity

No. of Members

Time Involved in Registration

Sole Proprietorship

Unlimited liability

NIL upto 2,50,000

Extremely Easy

NO

1

10-15 Days

One Person Company

Limited Liability

25%

Easy to Register

YES

1

10 Working Days

Partnership Company

Limited Liability to Each Partner

30%

Easy to Register

NO

2 to 100

10-15 Days

Private Limited Company

Limited Liability Partnership

25% upto Rs 400 crores and 30% after Rs 400 crores

Moderate

YES

2 to 200

10 Working Days

LLP

Liability Partnership

30%

Moderate

YES

Minimum 2 and Maximum Unlimited

15-20 Working Days

Which Business form you should prefer?

There are 5 business forms that Taxudyog has the expertise of and they are Sole Proprietorship, Partnership company,
One Person Company, Private limited company, Limited Liability Partnership.
  • Sole Proprietorship
  • One Person Company
  • Partnership Firm
  • Private Limited Company
  • LLP Registration

What is Sole proprietorship?
It is the type of Business structure where one person has control over the overall activities of the business and the risk that it has is also endured by the same person. After sole proprietorship, Taxudyog also helps in Partnership company.

The other names for the sole proprietorship are sole tradership, individual entrepreneurship, or proprietorship. It is the type of business that is owned and controlled by the same person. The legal distinction between the business and the owner is not there. A sole proprietorship is a business where the profits are enjoyed by the same person and the risk that it has is also borne by the same person. It is not necessary for a person in Sole proprietorship to run the business on its own but he or she can always employ some more people to work for him and of course, it will not violate the definition of the sole proprietorship as it means the single person running the person. Employing people is completely different from having a partner to share your profits and losses with.

So, What are the advantages of Sole proprietorship?

* Easy to establish
Unlike many other businesses, a sole proprietorship is easy to establish and it does not require any specific registration requirements, and the legal identity of the person is used by the business.

* Profits
The profits that the sole proprietorship generates is enjoyed by a single person with no other person to share the profits with

* Operation is easy
It is the type of business that is easy to operate and the decisions are made quickly as there are no other people involved and their opinions.

* Quick decision making
There is quick decision-making as the single person is required to take all the decisions related to business whether it’s small or big.

* Tax
If the firm generates a profit of more than 2.5 lakhs per annum only then it is required to file for income tax otherwise it doesn’t have to be under the tax slab that we have right now according to law. Further, there can also be a deduction in a tax liability if the sole proprietor has various insurances, have to pay rent, has medical expenses, etc.

People often get confused between a one-person company and a sole proprietorship.

So, What is a One-person company and what is the difference between a Sole proprietorship and a One-person company?

While both the terms may sound the same but they aren’t the same because in sole proprietorship the owner and the company are the same. They are considered the same legal entity. In a one-person company, however, it is not the same. In a one-person company, the person conducting all the business activities and the company are two separate legal entities. They are not one or are considered the same. The person has their own identity and the company has its own identity. The business is run by a single person here.

What are the benefits of one person company?

* Requirements are minimum
The requirements of the one-person company are very less. One 1 shareholder and director is required for it to conduct its business operations. Here, the director and shareholder can be the same person in the company. There is no minimum share capital that is required.

* Limited liability protection to the shareholder
In a sole proprietorship, if the business is at loss then the personal assets of the owner are at risk since they are not different according to the law. In a one-person company, there is no personal threat to the owner and its assets even if the company will have losses.

* Loans are easy to get from the Banks
Banks generally prefer to give loans to companies rather than individuals. And in some cases, banks ask entrepreneurs to convert their companies to private limited companies before deciding or sanctioning the funds. The process of getting the loans gets very easy and efficient if the startup is registered as a one-person company

* Complete control
There is complete control of the single person over the company and the profits that the firm produces are also enjoyed by the single person. However, the losses and risks are also then borne by the same person if the firm is a one-person company. But then, just like everything in life, one person company also has its share of pros and cons.

Two or more than two people are involved in a partnership company who agree to share their resources and form a business where they will share the profits, losses and will bear the risks together. There are also different types of partnerships where partners have limited liability according to their shares in the company. The one very interesting type of partner is the silent partner. A silent partner is the type of partner that is not involved in the day-to-day activities of the business but has shares in the company. 

What are the types of businesses that are best for partnership? 

When there are a group of professionals that are in the same line of work and each partner has an active role in running the business then it is suitable for the partnership. The types of professionals that are included are medical professionals, consultants, architects, finance and investing, lawyers, accountants, etc. 

What are the advantages and features of Partnership?

* Two or more people can be there
According to the Partnership Act, 1956 association of more than 10 people if the company is a banking business and 20 people should be there in another type of business otherwise it will e considered illegal according to the law. More than 20 people should be registered as joint-stock companies. In the earlier act, that is, Partnership Act 1932, the maximum limit on the partner was not mentioned.

* Registration
Registration of the company is not legally required. However, if it is not registered then there are certain legal benefits that a company can not enjoy.

* Profit sharing
The profits that are earned by a company are shared amongst the partners in a proportion it has been agreed upon. If some employees or creditors are sharing the profits then they are not considered partners unless there is written proof or agreement between the parties.

* Lawful activities
The business and the partnership can only be considered legal if the lawful activities are carried out by the partners. Not only the business must be conducted legally but also the activities that it carries and the goods and services it offers should be legal and according to law.

Taxudyog offers its’ services for a business style like a Private limited company as well. Now, What is a private limited company?

The incorporation of a Private limited company is done under the Companies Act, 2013. Ministry of Corporate Affairs in India governs it. The owner and the business are two different legal entities here and they are not considered the same according to law. The company has its own legal identity and the owner has its own. Minimum 2 directors and shareholders are required to start a company and the maximum number of its members can extend up to 200. The liability of the shareholders is limited to the shares that are held by them and there is a restriction on the transferability of the shares. In private limited companies, the general public can not subscribe to any securities that the company has.

What is the difference between a private company and a public company?
  • In a private company, the minimum number of members should be 2 whereas, in a public company, the minimum number of members are restricted to 7
  • The maximum number of members can be there in a public company while the same is not true for a private company as the maximum number of members should be 200.
  • At least 2 directors must be there in the private limited company and a minimum of 3 are required in a public company
  • The suffix in the name of the private company should be ‘private limited’ and in the case of a public company, the suffix ‘limited’ is required.
  • If you have the shares of a public company, you can freely transfer them while the same is not possible in the case of private limited as there is a restriction in the transferability of the shares.
  • Public subscription is not allowed in a private company but it is allowed in a public company

What is LLP and what is the full form of LLP?

The full form of LLP is a Limited liability partnership and as the name suggests the partners that are involved in LLP have limited liability in the firm. LLP is the best choice for people who wants flexibility and less liability. The liability of the partner is the amount they have in the firm. it is a very common type of business style amongst Accounting firms, Wealth Managers, and law firms. Not just this, there are also several tax benefits if you have registered your company as a limited liability partnership. It is very convenient for the people who want to enjoy more by being involved less.

Why you should choose LLP? & What are the benefits of LLP?

* Convenient
It is very convenient to start and manage as there are few legal obligations when compared to a private limited company. There are fewer annual meetings, legal complications, and resolutions than other types of business styles.

* No minimum capital required
There is no minimum capital required if your business is registered as a Limited liability partnership or LLP. The best thing about LLP is that it can get started with the minimum amount of capital and it can be in various forms like tangible, movable, or in intangible form.

* Members are not limited
In LLP there is no limit on partners as such as the maximum number of partners that can be there is not mentioned anywhere like a private limited company where the maximum number of members can be 200 and a minimum of 2 members are required.

* Registration cost
The registration cost of the LLP is very low compared to other types of businesses like One person company, private limited company, partnership company, etc. It is often seen as one of the most efficient ways of doing business.

Focus on what can help you to solve your problems

Let’s build the future together

Are you worried that you’re not meeting the legal requirements to run a company? or it's hard for you to keep up with a dynamic environment? Don’t worry, we got you covered. Contact Taxudyog to get a seamless experience for your business needs.

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