Most people have a dream of being their own boss by starting their own business. Having that sense of freedom is great but the fear of taking things further is the only setback that many entrepreneurs face. There are many other reasons that prevent people from starting their own businesses including lack of capital, lack of ideas, fear of quitting their job, and other life situations. Starting a business in India is not hard, but you need to consider different factors before you start.
Sole proprietorship and partnership
A sole proprietorship is suitable when you want to start a business alone and start small in India. On the other hand, a business partnership is good when two or more people plan to start a business together. In a sole proprietorship, you can start with a small amount of capital and benefit from 100% profit. The same goes for losses, a sole proprietor bears it all alone. You can also decide to do Shopify low investment business with the smallest inventory possible. All you need to do is to open a current account and submit all the documents that the bank requires you to.
Partnerships are suitable when the business you want to do requires more than you have and become part of something bigger than a sole proprietorship business. To open an account with the bank, you will be required to present the partnership agreement alongside other documents. The risk is lesser in partnership as the profit and losses are shared equally among the partners. In the case of debt, the partners have equal responsibility for paying it.
Starting a Company
Private limited – In this kind of business, several stakeholders are involved. There is a structured method of doing business where each stakeholder has an obligation. A private limited company has a board of directors whose main responsibility is to advise the chief executive officer. Its operation should be registered with the registrar of companies and a certificate of incorporation.
Limited liability Company – This one has reduced liabilities compared to private limited companies. Entrepreneurs involved have restricted obligations and their personal resources are safe in case of bankruptcy or the company’s closedown. It also has other advantages such as easier incorporation, minor paperwork, smaller fees, etc.
Single person company –A one-person company allows businessmen to treat their business as a separate legal entity. It should have one director and its functioning is similar to that of a limited liability company. It is a safer approach to those people who wants to start a business on their own. It is a way of starting a business in India without considering the risk factor or trouble that sole proprietorships face.
Things are changing in India with many people coming forward to fulfill their entrepreneurial targets. Success and failure depend on how you build the foundation of the business. Starting a small business in India is very simple it is just a matter of focusing on things that will help you advance and grow your business with time.