Even though starting a business is exciting, there are some significant considerations that must be made. After all, you never want your freshly launched ambition to collapse due to a lack of compliance. Get to know more about the same!
Start Up Business: Overview
Congratulations! You have registered your company and taken the first steps towards realizing your business dreams. However, before proceeding with your activity, there are a few things that you need to take into consideration to avoid any future challenges while running your company. Know more Smooth Sailing to Success with Start Up India!
Most of these things involve processes that ensure you’re on the right side of the law and do not land either yourself or your start a business in any trouble. A well-planned and executed business set smooth sailing to success by strategically aligning its goals and objectives with a clear roadmap for growth.
In order to ensure that you are business ready, you need to check if all the t’s are crossed and the i’s are dotted, and that you comply with the rules and regulations put by the Ministry of Corporate Affairs.
Non-compliance means hefty fines and new companies do not want to begin their corporate journey paying fines because they forget to meet certain rules and regulations. These compliances are especially important when you are involved with Foreign Direct Investment. Additionally, some of the critical factors while setting up a company include the following
- Having a PAN Card
- Having a proper company bank account: However, do note that banks have to be informed of incoming remittances from non-resident subscribers
- Regular company audits
- Applying for GST
- Acquiring an Import-Export license
Required Business For Maintaining Sailing Business
1. Maintaining a Registered Office
The Ministry of Corporate Affairs has made it mandatory for all companies in India to have a registered office. Once a company is registered, the organisation should file the registered office address from INC-22 within 30 days of getting registered.
Additionally, the registered office can be a corporate building or residential complex. Likewise, it doesn’t matter if it’s owned or rented as long as you have approval documents such as NOC or proof of address to prove that you are allowed to have business operations. Embracing innovation and adaptability in the business set smooth sailing to success by staying ahead of market trends and customer demands.
2. Board Meeting for Business
The Central Government has specified that all new registered organisations have to conduct a board meeting within the first 30 days of incorporation. Moreover, the first board meeting usually has the following discussion
- Approvals to open a current account with a registered bank
- Appointing the statutory auditor
- Authorising statutory registrations
3. Letterheads
As an organisation, it is imperative that you have the letterheads of your company printed. Similarly, the letterhead should contain the registered office name, address, CIN, phone number, as well as email and website.
4. Board Outside the Office
New companies are required to put outboard outside their office premises that state their name, and the registered office. Likewise, this helps people find the premises easily and helps you find new clients.
5. Registering for GST for business
GST and IEC Code registration is mandatory as it is required for all start a business proceedings and transactions.
6. Opening a Bank Business Account
All new companies need to open a current account with a bank of their choice. Once done, the promoters have to contribute the prescribed subscription money.
7. Non-resident Inward Remittance
If your Organisation’s subscribers are NRIs, then their contribution towards the company will come via inward remittance. Moreover, you will have to inform your bank or the RBI about this within the first 30 days of registration.
8. Share Certificate Issuing
Section 10(2) of the Companies Act, 2013 indicates that all money payable by any member of the company under the Memorandum of Association or Articles of Association will be counted as a debt to the company from the particular member. Further, Section 56(4) of the act also dictates that the company should issue share certificates to the Memorandum Subscribers within 2 months of the date of the company registration.
9. For Non-residents, an FC-GPR
After reporting inward remittance, the company has to file the FC-GPR form.
10. Stamp Duty
Stamp Duty has to be paid within 30 days of issuing the share certificates. Moreover, stamp duty varies from State to State and therefore the amount is determined by the state in which the office of the company is registered.
11. PF
If your organisation has over 20 employees, then you can deduct a PF contribution.
12. Maintaining Registrars and Minute Books
According to the 2013 Companies Act, if a company fails to maintain the prescribed books they might be looking at some fines under the penal provisions of the act.
13. Member Registration in Business
Names and details of subscribers have to be detailed and documented in the Register of Members with the date of incorporation of the company as the date.
Conclusion
if you observe the following signs in your startup, then it is likely business set smooth sailing to success:
- Strong customer demand and positive feedback indicating product-market fit.
- Stable and healthy financial metrics, such as revenue growth and profitability.
- A talented and committed team with a positive and collaborative culture.
- Successful execution of a well-defined business plan with a clear path to scalability and growth.
- Positive industry recognition and media coverage, indicating a strong brand and reputation in the marketplace.
- Building strong relationships with customers, suppliers, and partners is vital for a business set smooth sailing to success, fostering trust and loyalty.
While there are no guarantees of success, these indicators suggest that your startup is on the right track and has a strong foundation for achieving sustainable growth and profitability.
For further information about the start a business, visit Vakilsearch.
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