Forming A Business Made Easy

By Author: Devang Master
Total Articles: 3
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For those who one day wants to become the next Steve Jobs or Sachin & Binny Bansal, or the first of their name in the entrepreneurial attempt, business formation is the first step to start with. The business structure is the first step to secure financing, hire executives and provides the foundation to hold up all the pillars of the company. Although taking risks is certainly a part of the entrepreneurial scenario, it is always a good idea to nail down the business structure required.

An entrepreneur has the option to set up these common types of business-

Sole proprietorship: It is the simplest business to set up, although it offers no protection to the owner. A sole proprietorship is acceptable for businesses with minimal risks.

General partnership: This is another informal business entity that does not require more than a partnership deed. General partnerships do not provide any sort of asset protection.

Limited Liability Partnership (LLP): This business requires at least one general partner and one limited partnership. It combines the advantages of both company and partnership into a single ...
... form of organization.

Private limited company: These are closely held businesses, usually between family members and / or friends. Private companies are allowed to issue stocks and have shareholders.

Usually the formation of a business goes through a number of stages which are mentioned below-

Arrangement and verification of Documents:

At first, the basic documents of Directors who will be at the helm of the company are aggregated and verified. After that all directors or official representative create their respective digital signatures to make the process of documentation more authentic and secured. DSC also verifies and establishes the identities of parties involved in a business formation.

Documentation and approvals:

Once Digital Signatures and Digital identification Numbers are acquired, proposed name of the company is sent to the registrar of companies for approval. Only after these approvals, a company can get MoA (Memorandum of Association), which has to be printed and made public with anyone who is associated with a company.

Filing for Incorporation: After the registration of Memorandum of Association, Articles of Association, the registrar issues a ‘Certificate of Incorporation’. This certificate is the evidence that the company is incorporated and all the requirements of the Companies Act have been complied with.

One has to remember that a business cannot come into existence out of a void. The efforts of the entrepreneur as well as the rest of the team put a name to the business. The process of business formation starts with conceiving an idea and translating that idea into action. This implies the establishment of a business and its commencement depends much on the team hired and foundation members, stakeholders and other parties liable to it.

A business owner once decided to incorporate his venture, has already taken a route that’s full of challenges and possibilities. That’s why we want to tell you a secret- once you register with Filingenie, your business formation already gets under way. Filingenie ensures that business formation does not end up becoming a round -about process. Filingenie is the one stop solution for all business formation deals that too without any signup or payments gimmicks.

For more information about how we can help build up your business, visit our site.