Best Business Model – Forming a Private Limited Company
Have you know about Best Business Model.
Are your still confused for how I start up my business ?
Here we are going to share with you best suitable business model in current economic scenario.
In India, the most common business model are as:
- Sole Proprietorship – Business managed and operate by a Single Person
- Partnership Firm – Business Managed and operated by two or more person.
- A Private Limited Company – A Corporate Model of Business that managed by Company Directors.
If you are having a long term business vision and more specific on your desired business then you should adopt a Corporate Model for your business operation.
What are the key benefits of Company:
- Create Brand and Corporate image:
By Forming a Private Limited company you can give a Corporate Image and Brand of your Business. Once you got approval of business name, no one get opt such name in India. You can take the advantage of your business brand building.
- Separate Legal Entity:
A Company is a separate legal entity form it shareholder. A Company can buy property on its own name. Company have the Right to enter into contracts and Sue also. It will give a difference between owner and management. Through this Owner can save their personal interest from the business affairs. The liability of a shareholder shall be limited to his ownership. In other owner can enjoy the limited liability in a company. While he can not enjoy this in the Proprietorship and Partnership Model.
- Easy Transfer of Shareholding:
In a Company, you can easily transfer your share with other person and enjoy the benefits of quick change in ownership. While change in ownership in a Partnership firm is too much complex. Being a Shareholder you can easily disinvest your share.
- Larger Market in India:
By having a Company Platform, you can access the large market of India and Promote your business at larger scale. Your Company Information will be available on Govt. Website that create a Public Trust on your business. It will help you indirectly procuring more business.
- Low Tax Rate:
A Company can enjoy the benefits of lower tax rate in India. Right now applicable tax rate is between 15% to 22% on Company. While it is 30% on a partnership firm.
- Other Benefits:
Apart from the above said benefits, by forming a company you can enjoy the following additional benefits such as:
- Easily Access the Bank Loan at lower rate of interest
- Execute Inter – State Business Contract.
- Scale up your business in Multiple product line.
- Access more skilled manpower.
- System led working environment.
Few basic things to be kept in mind while starting a Company:
There are some basic points that you should keep in mind before going to start a company as:
- Director: By forming a company, you will be known as Director rather then a Partner. You will receive a Director Identification Number (DIN) that give you a unique identification in throughout the India.
- Shareholders and Directors: A Private Limited Company can have maximum of 200 shareholders and should have minimum 2 shareholders at a time. A Public Limited Company has no restriction on the maximum number of shareholders and but minimum number of shareholders must be 7.
- Registered Office: You need to choose a Registered office for having all communication related to Company. Such address shall be available at the Ministry of Corporate Affair’s Website.
- Separate PAN: A Company shall need to obtain a separate PAN for the purpose of Income Tax Compliance.
- Memorandum & Articles of Association: The Memorandum of Association (MOA) states the main, ancillary or subsidiary along with other objects of the company. In other words, MoA define the business activities that a company can do. The Article of Association (AOA) covers the rules and procedures for the routine conduct of the proposed company, the authorized share capital of the proposed company and also the names of its first or permanent directors.
- Share Capital: By forming a Company you can fix up the shareholder money need to invest in the Business. Such share capital shall be divided in Equity Share of small amount. You can easily transfer such share with other person as per the need of your business or personal interest.
Decide to Form a Company:
Many times, most of person feel that formation of a company is very difficult task. But right now, it is not ..
Just decided the suitable name of your Company and Get it approved within 3 to 7 working days. You need to fix up the following basic Points as:
- Director Name
- Registered Office Address
- Type of Business Activities
- Share Capital
So don’t delay and share with us your dreamed business plan.
We at KIP Will assists to you in formation of your Dreamed Company. Not Just Company Formation, you will get a complete package of services in which we will give you the following additional registration as:
- PAN of Company
- TAN of Company
- GST Registration
- MSME Registration
Apart from Company Formation, we will help you in taking various subsidy and incentives benefits provided by Central and State Govt. on your proposed business.
You can submit your interest of Company Formation at: https://forms.gle/NS7n94hHxDcmPnqr6
Our team will connect with you for more discussion.
To know more about subsidy benefits, You can also subscribe our Subsidy Scheme Update Plan: https://kipfinancial.com/subscribe-kip-yearly-plan-of-subsidy-schemes-subscription/
For more detail, Contact us:
90177-51780, 86838-98080, 90171-51780
KIP FINANCIAL CONSULTANCY PVT. LTD.
DSB – 38, KIP Complex, Red Square Market, Hisar – 125001 (HR)