STARTUP

Expert Advice

Startup

Startups are the growth engine to the Indian economy. Every entrepreneur with extreme innovation and creativity had to vision to create another unicorn. 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 best legal structure for a startup depends on various factors such as the nature of the business, scale of operations, number of promoters, and liability. For instance, if you are a solo founder, a proprietorship or OPC may be a good choice, while if you have partners, a partnership firm or LLP may be preferable. If you plan to raise external funding and have long-term growth aspirations, a company structure may be ideal.

Startups can raise funds from various sources, such as angel investors, venture capitalists, crowdfunding, and bank loans. The most suitable funding option depends on the business model, stage of operations, growth potential, and risk appetite of investors.

Yes, an entity can avail benefits under the Micro, Small and Medium Enterprises Development Act, 2006 by registering under the MSME scheme. This can help the entity obtain various benefits, such as priority lending, tax exemptions, and subsidies.

Yes, getting a trademark is essential to protect the brand name and logo of the entity from infringement by competitors.

Yes, registering a trademark provides legal protection and exclusive rights to the entity to use the trademark and prevent others from using a similar mark.

The taxes applicable to a startup depend on various factors such as the legal structure, nature of business, turnover, and location. Some of the common taxes applicable to startups are GST, income tax, and TDS.

The Government provides various tax incentives and exemptions for startups, such as tax holidays, exemptions on capital gains, and deduction of expenses for R&D.

Yes, if the entity’s turnover exceeds the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for North-Eastern states), it is mandatory to register under GST.

Depending on the nature of business, the entity may need to register under other laws such as Shops and Establishment Act, Professional Tax Act, and Environmental laws.

The equity structure of a company should be decided based on various factors such as the number of promoters, the amount of investment, and the business model. Generally, it is advisable to maintain a balance between promoter’s shareholding and equity held by investors.

The debt and equity ratio for an entity depend on various factors such as the nature of business, stage of operations, and risk appetite of investors. Generally, a healthy debt-equity ratio is considered to be between 1:1 to 2:1.

Using personal savings is a common way to fund a startup, but it depends on the individual’s financial situation and risk appetite. It’s important to carefully evaluate the amount of personal funds that can be invested and the impact it will have on personal finances.

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 schemes.

Going public is a significant decision and requires careful consideration of factors like the company’s financials, growth potential, market conditions, and regulatory requirements. Typically, companies go public when they have a solid track record of financial performance, a strong market position, and a sustainable growth strategy in place.

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