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Private Limited Company
A PLC is viewed by the law as a distinct legal entity from its founders. Directors are the company’s officers and shareholders (stakeholders). Every person is considered an employee of the business. Private limited companies must comply with the Companies Act of 2013 and should have a minimum of two directors, two shareholders, and one director who is both an Indian citizen and a resident of India.
One Person Company
If there is just one promoter or owner, a one-person corporation is the ideal option to launch a business. It permits a lone owner to continue working while being a member of the company structure. It’s a new concept introduced in India by The 2013 Company’s Act. Just one member and one director are needed. The Director and member may also be the same individual.
LLP Registration
In an LLP, which is a separate legal organization, each partner’s liability is limited to the amount of their agreed-upon contribution. It was created by the Registrar of Companies (ROC) in accordance with the Limited Liability Act of 2008. It is a contemporary, beneficial company type that provides the ease and flexibility of a partnership. Due to the asset protection they provide for their partners and the simpler legal requirements, LLPs have grown in popularity among business owners across a variety of sectors.
Partnership Firm
A partnership is a relationship between parties who have consented to split the earnings from a business that is operated by all of them individually or by any one of them acting on their behalf. This trade, which involves at least two parties, can only result from a contract and not from status. The Indian Partnership Act of 1932 outlines the partners’ obligations to one another as well as other legal relationships that arise incidentally to the creation of a partnership.
Sole Proprietorship
One of the oldest and simplest business structures to be launched in India is a sole proprietorship. One individual, the proprietor, owns, runs, and controls this kind of company. Since the owner and the company are one and the same, it cannot have partners or shareholders. It is most suitable for small businesses with up to 5 employees because it does not provide limited liability protection for the proprietor from business operations.
DPIIT – Startup India Recognition
In order to obtain a variety of tax incentives, simpler compliance, IPR fast-tracking, and other benefits, eligible businesses can apply to have DPIIT identify them as startups. To support the Indian startup ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) initiative has carried out a number of projects and implemented recurring models.
80IAC – Startup Tax Exemption
Startups in India with DPIIT recognition have the opportunity to avoid paying millions in taxes. The exclusive Income Tax Act (Section 80 IAC) permits recognized startups to receive a 100% tax exemption for three consecutive years of profitable operations. One could argue that this is one of the most significant advantages. It attempts to reduce tax avoidance and motivates young business people to pay their fair share of taxes.
DPIIT – Seed Fund Application
This program intends to offer funding help to start-ups during the early phases, such as concept proof, prototyping, product testing, market entry, and commercialization. It increases the possibility that the business will grow to a size where funding from banks, venture capital firms, and other financial institutions can be sought. This program is continually under observation by the Department for Promotion of Industry and Internal Trade (DPIIT).
GEM Portal Registration
The GeM portal, also known as the Government e-Marketplace, is a website that was developed by the government via which it publishes tenders for a variety of daily requirements of government agencies, companies in the public sector, and ministries. The GeM website’s main objective is to increase the openness and effectiveness of government hiring and procurement processes.
ESOP Policy
Both the corporation and its employees gain from ESOP. It is advantageous for startups when workers may receive rewards after the business goes public. If they meet the requirements, any employee of the company may be given an ESOP offer. It is distributed by the business to its staff in an effort to promote employee ownership of the business. Employees receive discounted prices on the shares of the companies.
GST Registration & Amendments
In India, the GST has mostly superseded other indirect taxes including excise duty, VAT, and services tax. Based on the Goods and Service Tax Act, which was approved by the Indian Parliament on March 29, 2017, GST became effective on July 1st, 2017. In some circumstances, if incorrect information regarding the taxable person under GST has been altered on the GST Portal, a GST registration amendment may be necessary.
MSME Registration & Renewal
The registration of Micro, Small and Medium (MSME) businesses enables these businesses to take advantage of numerous government perks for their launch and development. The MSME sector is the foundation of the economy. Although MSMEs are not required to obtain this registration, it is advised to do so because there are numerous advantages in terms of taxation, company setup, credit facilities, loans, etc.
IEC Registration & Renewal
An import-export code, also known as an IEC, must be obtained from the central government by any company or dealer who intends to import and export products and facilities. Any business must register with the Central Government’s Directorate General, Foreign Trade (DGFT), which acts very similarly to a PAN verification. The IEC code must be updated every year between April and June in order to ensure that your import-export firm runs smoothly.