What Kind of a Business do You Want to Start Up? - PowerPoint PPT Presentation

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What Kind of a Business do You Want to Start Up?

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When a person decides to start a business, there are various options to consider before he/she takes the plunge. Business consultants in Chennai helps to decide that. For more details about Visit: – PowerPoint PPT presentation

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Title: What Kind of a Business do You Want to Start Up?


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Introduction
  • When a person decides to start a business, there
    are various options such as
  • Sole Proprietorship
  • Partnership Firm
  • Limited Liability Partnership
  • Joint Venture
  • Limited Company which could be a One Person
    Company or Pvt Limited or Public Limited
  • The choice of any particular legal structure
    would impact mainly the capital structure, ease
    of doing business, its scalability, compliance
    aspects and long term vision of the business.

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Disadvantages of sole proprietorship
  • The name of the legal entity cannot be preserved.
    Anybody can use the name.
  • Business cannot be easily expanded. Business
    loans from banks and financial institutions will
    be difficult to obtain,
  • since there is no distinction between the
    business and the owner. The personal assets of
    the owner cannot be protected
  • Even Though RBI has allowed foreign direct
    investment under approval route, it is difficult
    to attract equity investors to sole
    proprietorship.
  • The only advantage seems to be in fewer
    compliances and easy to start.

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Unlimited liability partnership
  • This is governed by the partnership Act of 1932
    and the partnership deed is the legal document
    which lays down the framework for the business.
  • The deed should be registered and a trade licence
    obtained for doing business. There are certain
    major disadvantages if the deed is not
    registered.
  • The main disadvantages are unlimited liability,
    difficulty in raising funds, and discord among
    the partners can affect the business.

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Limited Liability Partnership
  • The advantage is that the partners have a limited
    liability.
  • There are also fewer compliances as compared to a
    Company and the cost of formation is also less.
  • FDI is permitted in LLPs through automatic route
    in sectors where 100 FDI is allowed.

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Private Limited Company
  • A Minimum number of 2 shareholders and 2
    directors are required to form a Pvt ltd Company.
  • ( however the directors and the shareholders can
    be the same person) A big advantage is the
    liability of the members is limited to the amount
    contributed towards its share.
  • There are certain steps to be followed for
    incorporation of a Company including obtaining a
    digital signature and a director identification
    number.

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Private Limited Company
  • For the Assessment Year 2016-17 and 2017-18, a
    domestic company is taxable at 30. However, for
    Assessment year 2017-18, tax rate is 29 if
    turnover or gross receipt of the company does not
    exceed Rs. 5 crore.
  • Before opting for any particular form of
    business, an understanding of the advantages,
    disadvantages, legal compliances and method of
    accounting that would be followed would help in
    making it a success.
  • We would be glad to help answer any questions
    that you might have, please feel free to email or
    call us.

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Contact Us
Chennai Main Office 91 98402 77503, 91 98403
56270 info_at_vramaratnam.com 21, Rukmani St
Kamatchi Puram, West Mambalam Chennai, Tamil
Nadu 600033 Chennai Branch Office 26, Ground
Floor, 4th Street, Abhiramapuram, Chennai - 600
018.
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