All you need to question yourself the following:
- The objective of doing the business?
If the objective of doing your business is to “skim the cream” and make money immediately and wipe of the business – then Sole propriety business is best apt for it , if not, then go for a Corporate like Private Ltd or semi corporate like limited Liability Partnership (LLP). - R u planning to do all by yourself or want to take the help of others?
If You have good knowledge about the market of your product – then can go for sole proprietary concern, or if somebody is there to help you for it – then can go for Partnership or if you are looking for corporate identity the go for LLP/Private Limited company. - Do you have sufficient own funds to start up or you have angel investors who can invest in your business?
If you have sufficient own funds to run your business –go for sole proprietary concern, if you know any person to support – then go for Partnership or a LLP, if you have angel investors – then can opt for a private limited.
There is an important hidden parameter for any kind of an entity,i.e.,
All business runs on understanding. So you need to be clear on what is your work profile and the others for that we must have an agreement to be drafted.
- For a sole proprietary
you are the boss – so, there is no requirement for any kind of agreement. - For a partnership
a partnership deed is to be drafted but the strength of deed is quite low in our economic conditions. - For a private limited company
share holders will have shares divided based on their contribution and can create job description. - If you want a via media solution, can go for LLP it is still a partnership ,it does not have a disadvantage of having unlimited liability but has an advantage of corporate having limited liability.
Commonly raised questions:
Q) Is it simple to start a business?
A) Yes.
Q) How to start a sole proprietary concern?
A) Simple, put a name board and start your business, that it.
Q) What about all the registerations like VAT, PT, Shops and Establishment Act
A) Hire a Chartered accountant or a company Secretary to do it, being business owner, you need to concentrate on generating business.
Q) What is the right way to do a business (which entity suits me?)
A) Meet a right person to get a right advice.
Q) Is exit is difficult?
A) No, Exit is also as simple as Entry.
