If you are planning to start a company in Patna and are still unable to understand clearly, this article will help you. Starting a business in Patna can be a vast understanding. But with the right approach and the right advice from a chartered accountant in Patna, the journey can be broken down into manageable steps. Further, we have developed a step-by-step guide on the easy way to start a company, where we discuss the critical seven steps, such as
- Selecting the right business entity for your company
- Registering your business properly
- Getting all the necessary licenses and permits
- Creating and opening a company bank account
- Start giving jobs and hiring employees
- Comply with regulatory requirements and laws
- Start brand building and promotions
Select The Right Business Entity For Your Company
In the early phases of your entrepreneurial journey, picking the right business entity is crucial. This choice shapes the nature of your company’s legal, financial, and operational framework. In India, we can broadly classify business entities into five categories – Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company, and Public Limited Company.
Each entity type carries unique benefits and challenges. For instance, a Sole Proprietorship requires minimal setup processes, but the proprietor holds unlimited liability for business debts. On the other hand, a Private Limited Company offers limited liability and a separate legal entity, but it involves more compliance requirements.
Therefore, when choosing your business entity, you should consider factors like your business scale, investment requirements, growth aspirations, and liability concerns. Taking advice from legal and financial experts may also be beneficial in making an informed decision. Make sure to weigh all options and select the best fit for your business plans and goals.
Registering Your Business Properly With Experts Assistance
Registering your business marks its official birth in the eyes of the law. The business registration process in India varies based on the chosen business entity. It is best to connect with a CA in Patna to understand which business entity will suit your company type.
For instance, if you choose a Sole Proprietorship, you can start your business with just a trade license from the local municipality and your PAN card. For an LLP or a Private Limited Company, you will need to register with the Ministry of Corporate Affairs (MCA) through an online process, which includes obtaining a Digital Signature Certificate (DSC), Director Identification Number (DIN), and filing for company incorporation.
Remember, having a unique and relevant company name is crucial. You must ensure that your desired company name is not already registered with the MCA.
Getting All The Necessary Licenses And Permits
Getting relevant licenses and permits is next. These permissions grant your company the legal right to operate within specific boundaries defined by the government.
The requirements for licenses and permits vary greatly depending on the type of business and the state where you intend to operate. Typical requirements include GST Registration, Professional Tax Registration, and Shops & Establishment Act License. Additional licenses like FSSAI Licenses or Drug License are required
for specific industries like food and beverages or pharmaceuticals.
Obtaining these permits is crucial for your business’s legality and legitimacy despite being time-consuming. The licenses you’ll need depend on the nature of your business and the regulations in your state and locality. Be sure to research thoroughly and apply for all required licenses and permits before you start operating.
Create And Open A Company Bank Account
Once your business is registered, opening a business bank account is essential. This step helps to keep your business finances separate from your finances, providing a clearer financial picture and aiding in tax planning.
To open a business account, most banks require your company’s registration certificate, Memorandum of Association (MoA) and Articles of Association (AoA), PAN card, and proof of the registered office. Make sure to explore different banking options to find one that suits your business needs best.
Some banks offer special accounts designed for small businesses, which might come with added benefits like lower fees or increased transaction limits. Do your research and choose the best option for your needs.
Start Giving Jobs And Hire Employees
For a business to flourish, the right team is indispensable. To hire employees in India, it’s vital to know labour laws and rights, such as minimum wage regulations, working hours, and leave policies.
Creating a clear and comprehensive job description, conducting thorough interviews, and carrying out reference checks are essential steps in hiring the right people. Once hired, employees must be covered by necessary insurance like Employee’s State Insurance (ESI).
As a company, you must ensure you meet all employer responsibilities, including paying the right taxes and providing a safe work environment.
Comply With Regulatory Requirements And Laws
Staying compliant with regulatory requirements is vital for the smooth operation of your business. This includes filing your business taxes on time, following employment laws, maintaining proper financial records, and adhering to any industry-specific regulations.
A successful business isn’t just about great products or services; it’s also about compliance with legal and regulatory requirements. This includes regularly filing tax returns, maintaining company books and records, and meeting sector-specific regulations.
Non-compliance can lead to legal consequences, heavy penalties, and a tainted business reputation. Therefore, ensure you know all your legal obligations and consider seeking help from legal experts if needed.
Start Brand Building And Promotional Activities
Promoting your business effectively is as crucial as setting it up. In today’s digital era, online marketing methods – such as social media marketing, search engine optimization, and content marketing – can be powerful tools to reach out to your target audience.
Remember, your marketing strategy should align with your business goals and customer needs. Whether through traditional channels like print media or digital platforms, consistent and creative engagement is critical to standing out in the competitive market.
In conclusion
Starting a company might be a big step, but breaking it down into these manageable steps makes the process easier. By following the steps given in the guide to the easy way to start a company, you’ll be on your way to building a successful business.
Building a company for yourself can be an exciting yet challenging journey. But by taking these steps into account – choosing the right business entity, registering your business, getting necessary licenses, opening a business bank account, hiring the right employees, complying with regulations, and promoting your company – you can pave the way for a successful entrepreneurial journey. Remember, starting a business is just the beginning. The real work lies in running and growing it.
