Self-employment or entrepreneurship is exciting yet challenging in many ways. Every new venture has its set of risks and loopholes. Startup registration in India is one of the prime concerns while starting a business. But an intelligent choice can help you move away from unnecessary pressure and focus on only what is essential.
You need to know if you are choosing the correct business entity and ensure a safe founder’s agreement process. Having a startup India company registration assistance will reduce your stress.
Therefore, choose a great service provider for your business and leave documentation processes and organization on them. Here are a few things that will help you choose well:
1. Helping You Choose The Perfect Business Entity
Unsure about the kind of startup you prefer. They will be by your side and make you understand the differences, advantages, pitfalls of the various entities. Here is a guide to help you choose:
- Sole Proprietorship
It is a prevalent and straightforward business entity and doesn’t require much process. In this business model, there is one person who is responsible for the business. Therefore, the owner is answerable for operations and is in charge of the liability and profits.
- Partnership Business
For a partnership startup registration in India, you need two or more owners. Each partner can decide their share of liability and responsibility and based on that a legal agreement is prepared which shall bide them.
- Limited Liability Partnerships
It is not much different from a general partnership and retains the benefits of corporate tax exemptions. The founding partner has the company name attached to them and mainly controls the business.
2. Assistance for Drafting The Founder’s Agreement
A founder’s agreement is a legal document that binds all the co-founders. It is essential because it creates a proper demarcation between the partners regarding responsibilities, profit sharing, and liabilities. Therefore, a business can avoid legal issues as well as disagreements between the founders.
Drafting a founder’s agreement requires sound technical, legal knowledge, and you require professional assistance in this matter. Therefore, choose a service provider with experience and expertise in this particular field.
3. Guides You With The Process Of Taxation
Filing the taxes is an essential part of the startup India registration process. As a service provider, you need to be aware of the tax process to be followed in the state and central.
Your service provider does not just ensure tax guidance is followed but keeps you aware of the exemptions, tax credit optimization as well.
4. Managing Your Payroll
Having a service provider who can also handle the remuneration process and is aware of ESI, PF, professional taxes, and TDS and other laws of the land can be helpful.
You will need payroll assistance because you have to understand the legal nuances. There are frequent amendments in labor laws, and it isn’t easy to keep track. In contrast, expert service providers are always up to date with all changes and can make timely moderations.
5. Assistance With Borrowing Funds
In case of a financial crunch, you might need to sell your company shares, add members, or take a loan from a financial institution. A seasoned service provider has the perfect knowledge of the market, understands its pitfalls, ups and downs. So you will get precise information regarding choosing the best funding source without much hassle.
Accumulating funds involves ample documentation which can be challenging for you. But if you choose the proper service assistance, your approach will be systematic. They maintain your book of accounts and have complete knowledge about your business.
6. Maintaining GST Compliance
GST is the goods and service tax that you need to pay on behalf of your business. It is a complicated process and requires monthly filing within the due date. In case of failure to maintain deadlines, you might have to pay fines. But a service provider will help you avoid such a situation.
To Sum It Up
Startup registration in India needs professional guidance to mitigate the frequent problems that may arise in due time. With SetMyCompany, you can leave your worries and focus on business expansion.