Ways To Start A Startup In India? Well, this has questioned its own wide range. I am saying this because it actually depends on what you want to start I mean a startup in India as Sole Proprietorship, partnership, company, one person company, and LLP. I mean how?
Don’t worry at all I will explain all these things in details here so, you get the answer of “how to start a startup in India”.
There are five ways to register a startup in India:
- Sole Proprietorship
- Limited Liability Partnership
- One Person Company
- Private Limited Company
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1.) Ways To Start A Startup In India, No. 1: Sole Proprietorship
This is the easiest way to start a startup in India. If you are going to start your business alone then this is for you. Easy to register with no extra (or I can say no) compliance. In Sole Proprietorship, there is no need to registered with GST or any other. Because it is owned and managed by a single person.
You can apply for registration with GST but it is not mandatory. You are required when you cross the minimum threshold limit (i.e, 20 lakhs). This is the biggest benefit to start a startup in india.
2.) Ways To Start A Startup In India, No. 2: How Partnership
If you are going to start a startup in India with someone and want them to be the partner of the firm, then this most suitable for you. The general business structure of partnership is for 2 or more person. The partnership is registered on stamp paper.
The Partnership deed has to be printed on a Stamp Paper and has to be notarized. After this, an application is to be made to the registrar of Firms of the state to get registered. The registrar of firms accepts the request and allot a registration number to the firm.
This registration can be done anytime i.e. either at the time of starting the company or during the continuation of the operation of the company. In layman’s term, you can register under partnership act on, before, or after the start a startup in India.
The main benefit of this act is a partner can sue (file case) the other partner. And a partner can file a case against anyone on behalf of the partnership.
But if any partner finds guilty in anything, then that liability of that thing is not limited to the partnership but the person who is actually responsible for the act is solely liable from his own property, not the whole partnership. It means the liability of partners is unlimited.
Also Read: Why own business is better then job
3.) Ways To Start A Startup In India, No. 3: Limited Liability Partnership (LLP)
LLP is a significant improvement on Partnership firms, which give Limited Liability to the Partners involved and also it has lesser compliances compared to a Pvt Ltd Company since the working of an LLP is solely dependent on the Partnership deed that is drafted between the partners and is filed with RoC.
In simple terms, it is same as Private Limited Company and Partnership because it has the similar feature of both jointly. It means the liability of partners is limited like in Private Limited Company.
4.) Ways To Start A Startup In India, No. 4: One Person Company
One Person Company is the improvement over Sole Proprietorship firm which gives complete control to one founder and gives a benefit of Limited Liability to the founder.
OPC is registered with Registrar of Companies (RoC) under Ministry of Corporate Affairs (MCA)
5.) Ways To Start A Startup In India, No. 5: Private Limited Company
Private Limited Companies are the most preferred option for any startup that is looking at scaling up by external funding as it is very easy in Private Limited Company to issue fresh equity shares in lieu of funding received.
But the limitation to registered under this act is if your business is too small and you do not have that much of funds or investor then you’ll shut down only because of compliances because compliance under this act are too much longer and need a pretty much big amount which is not good for very small startups.
And that’s all to start a startup in India or register a startup in India and I hope you like these “Ways to start a startup in India. if you still have any question that How to Start a Startup in India then feel free to ask I will be there every time only for you..!!
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