LegalWizin's blog

Entrepreneurship is a journey by itself and just like any other journey, it has its own do’s and don’ts. I too, started this journey to provide business professional services a few years back. It’s only then did I realize that it would have been an added advantage for me to know the rule book beforehand! But to make the startup journey easier for all aspiring business minds reading this, here are the 5 things you must look forward to polish right from the beginning.

1. Keep Your Focus & Dedication Intact

2. Watch Out For Data Trends

The question is quite brief to understand the situation.

The professional consultant can only help you for the way out after understanding the whole issue.

In case of corporate structures like a company or LLP - the majority stakeholder may take the matter in hand as per the previous agreement.

For a voluntary partnership as well, there is surely an agreement in place. You are required to refer the said agreement to find a way out.

Any way, you need to consult the professional with details of the matter and find a way out.

Service based businesses generally required lower investment compared to product based. But not sure in all cases. The scale of business plays important part to decide “how to start.”

Generally, based on such factors like, scale of business, investment needs (initial and long term), risks and returns, you need to decide the appropriate business structure. i.e. Proprietorship or partnership or LLP or Pvt co.

A Partnership can be created, certainly, with another distinct individual. That means, it takes minimum 2 persons to form a partnership.

The maximum number of partners is 50, which is prescribed under Companies Act, 2013. Any business organisation having more than 50 members is declared illegal association unless it is a body corporate like an LLP or a company.

However, this ceiling limit does not apply to HUF or an association of professionals, such as CS or CA - who are governed by special Acts.

A partnership firm can be formed either with oral or written agreement. However, in most of the cases written agreement i.e. partnership deed is feasible as well preferred.

Normally, on death of one of the partner, the partnership is dissolved. However, if it is agreed that the partnership will continue even after death of a partner with his successor, you may continue the partnership with little changes.

You need to first check the dissolution clause and clause related to death of a partner first to understand the future course of action. You may also take help of a professional to understand the matter. Based on same, GST registration can be amended accordingly.

No. You may not file the annual compliance forms of LLP because that requires signature of both Designated Partners at the same time.

Therefore, your are required to reactive the DIN by filing DIR-3 KYC. As the due date has passed already, you the partner is required to file the form with additional fee of INR 5,000 for its reactivation.

Once the DIN is reactivated, you may file the forms for annual compliance or for any other requirement.

Plan your business.

As you decide to start a business, you need to foresee the operational scale and scope of the business activities to prepare a business plan. It is not necessary to draft a business plan with a professional, but you may take help, if required.

Following will be considerable factors for creating a business plan and research.

Most likely, it is no. Because Government jobs put restriction as to running business or engaging professionally alongside.

However, that completely depends on the service agreement or your appointment contract with the employer. Therefore, first refer the agreement signed or policy and take decision.

If required, you may also contact your employer for clarification or otherwise to a professional.

Multiple startup and business activity under a single Private Limited Company is not a good idea because with word Startup, I catch the need of investment.

Having multiple distinct activities in a single organisation will lead trouble to attract investors. Even the financial statements will not be able to represent the fair position from one activity.