Top 5 business ideas to start with low investment - PDF document

Top 5 business ideas to start with low investment Businesses can be started within a few days in India as the process of business set up has become easier and prompt. There are different companies that provide step by step guidance from the application filing to online company incorporation . These companies give the right advice and provide consultation services too. In this article, we will talk in detail about one of the most common types of companies, private limited company. This company is consider ed by most individuals because of the ease in which the company can be started. What are the business ideas that can be started with own investment? These are some of the businesses that can be started with low investment. All these businesses can be start ed as a private limited company. • Selling digital products or courses • Sell a service • Launching a book • Starting an e - commerce business • Bookshops • Cafes Let us talk about how an individual can set up a private limited company. What is a Private Limited Compan y? A company is defined as a private limited company if it is owned and incorporated by an individual or a group of individual under private ownership. This company is formed as per the provisions of companies act, 2013. Section 2 (68) of the act defines p rivate companies as a company that restricts the transfer of shares and prevents the public from subscribing to them. What are the ty pes of a Private Limited Company ? The first step in the establishment of a private limited company is to select the type o f company. The three types of private l imited company are as follows: • Limited by shares In this type of company, the liability of members is limited to the amount unpaid to the company considering the shares they are holding. • Limited by guarantee I n this type of company , the liability of members is limited to the amount of money they guarantee at the time of company closure. • Unlimited liability In an unlimited liability, p ers onal assets can be sold easily. What are the advantages of Private Limited Company? A private limited company has several benefits which individual enjoy throught the run of the company. In this section, we will talk about s ome advantages of the company: • Separate Legal Entity • No annual report needed for general reports • Mi nimum requirement of directors is two • Perpetual Succession • Limited liability of the members of the company What is the registration process of Private Limited Company? The process of registration in the incorporation of any company is the most crucial part . This section will specify some steps involved in the registration process of Private Limited Company. Digital Signature Certificate (DSC) A digital signature helps in the signing of significant documents, thus is a major requirement of all directors and shareholders. Name Application After receiving the signature, the applicant must fill up Spice plus form (Spice Part A) for name reservation. Drafting of MOA and AOA MOA is the constitution of the company and defines various clauses that are compulsory. T he AOA governs the internal rules and regulations for the functioning of the company. SPICE - Part B This form is for the incorporation of the company and must contain all details related to the company such as names of directors and shareholders, registered office etc. AGILE – Pro This form must contain details such as GST, ESIC, EPF registration, professional tax registration etc . INC - 9 This form is a declaration by the directors and shareholders regarding their records Grant of Certificate of Incorporation The authority reviews all the documents and details submitted including the application form and ensure that it is correct. After th ey are satisfied , they will g rant the Certificate of Incorporation (COI) along with PAN and TAN. What documents are required to establish Private Limited Company? Documents are an important in the registration process and the incorporation of a private limited company. • ID proof such as Pan card, Passport • Address proof such as voter ID, driving license, passport, latest bank statement, latest electricity bill, water bill or gas bill • R egistered office address proof - latest electricity bill in the name of director or shareholder and NOC. • If the property is rented, the applicant must submit the rent agreement, latest electricity bill and NOC. Conclusion Setting up a Private Limited Company requires several steps, requi rements and submission of forms and documents. The establishment is quicker and individuals consider this company as it proves to be beneficial. This article has been contributed by Mahiya Ahmed who is a content writer. She is working for SwaritAdvisors. S waritAdvisors is legal & financial services provider such as Online NBFC Registration , Online Nidhi Company Registration in I ndia , Online FSSAI Registration , Online Public Limited Company Registration , etc. Digital Signature Certificate Name Application Drafting of MOA and AOA SPICE - Part B AGILE – Pro SPICE - 9 Grant of Certificate of Incorporation