Business setup in India is never so easy as now due to recent government policies in relation to ease of doing business in India. India, being the fastest growing economy of the World, launched lot of policies and incentives to the entrepreneurs who wish to start their own business in India whether in manufacturing, processing, assembling, services etc. We are here for you to nurture your dreams by assisting to answer your obvious finance and tax related questions to give up a head start. We are ready with the answer of all your questions such as.
The most appropriate legal structure for a business in India depends on various factors like the nature of the business, number of owners, liability protection, and tax implications. Each type of legal structure has its own advantages and disadvantages. For example, a proprietorship is easy to set up but does not offer limited liability protection, while a company offers limited liability protection but has higher compliance requirements.
The information and documents required vary depending on the legal structure chosen and the type of business. However, some common requirements include PAN card, identity and address proof, business address proof, and bank account details.
Yes, an entity can get the benefit of MSME registration if it meets the eligibility criteria defined by the government. MSME registration offers various benefits like access to government schemes and subsidies, lower interest rates on loans, and priority in procurement from government agencies.
Getting a trademark is not mandatory, but it is recommended to protect the business’s brand and reputation from infringement by competitors. It also helps in creating a distinct identity for the business in the market.
Trademark registration is not mandatory but is recommended to protect the trademark from unauthorized use. Registered trademarks have legal validity and can be enforced in case of infringement.
The taxes applicable to a business in India vary depending on the legal structure and the nature of the business. Some common taxes applicable to businesses are Income tax, GST, and TDS.
The government offers various tax incentives to businesses depending on the sector, location, and size of the business. Some common tax incentives are tax holidays, investment allowances, and accelerated depreciation.
All businesses with an annual turnover of more than Rs. 20 lakhs (Rs. 10 lakhs for North-Eastern states) need to register under GST. However, businesses with turnover less than Rs. 1.5 crores can opt for the composition scheme.
Depending on the nature of the business, the entity may need to register under other laws like the Shops and Establishments Act, Factories Act, and Pollution Control Board.
The equity structure of a company depends on various factors like the number of owners, the amount of investment, and the ownership distribution. It is recommended to consult a professional for advice on the ideal equity structure for a company.
The debt and equity ratio of an entity depend on various factors like the nature of the business, the stage of growth, and the risk appetite of the owners. It is recommended to maintain a balanced debt and equity ratio to avoid financial instability.
Using personal savings to fund a business is a common practice, but it is recommended to evaluate the impact on personal finances and take appropriate measures to minimize risk.
The right source of debt funding depends on various factors like the nature of the business, the amount of funding required, interest rates, repayment terms, etc. Some common sources of debt funding are banks, NBFCs, venture debt funds, and government
The decision to go public depends on various factors such as market conditions, company’s growth and financial performance, and regulatory requirements. It is advisable to consult with legal and financial experts before making a decision to go public.
One way to reduce compliance burden is to adopt technology and automation tools for compliance management. Additionally, outsourcing compliance management to a third-party provider can also help in reducing the burden.
Unforeseen expenses can be managed by maintaining a contingency fund, having a robust financial planning and budgeting process, and seeking external financing options such as loans or lines of credit.
Cash flows and liquidity can be managed by having a disciplined approach to cash flow management, maintaining adequate working capital, and monitoring and forecasting cash flows regularly.
The requirement for registration under Shop and Establishment Act varies from country to country. In some countries, proprietorship businesses may need to register under this act depending on their nature of business and number of employees.
The profit-sharing ratio in a partnership firm can be decided based on various factors such as the contribution of each partner, nature of business, and agreed terms between partners. It is advisable to consult with legal and financial experts before deciding the profit-sharing ratio.