{"id":4229,"date":"2023-12-26T10:34:36","date_gmt":"2023-12-26T10:34:36","guid":{"rendered":"https:\/\/enterprisehub.org.in\/?page_id=4229"},"modified":"2024-01-25T11:58:47","modified_gmt":"2024-01-25T11:58:47","slug":"starting-an-enterprise","status":"publish","type":"page","link":"https:\/\/enterprisehub.org.in\/index.php\/starting-an-enterprise\/","title":{"rendered":"Starting an Enterprise"},"content":{"rendered":"\t\t
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Starting an Enterprise <\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Register your business<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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In India, there are five main kinds of legal entities from which to choose when conducting business. These are the Limited Liability Partnership, Sole Proprietorship, Partnership Firm, Private Limited Company, and Public Limited Company. The selection of the company entity is influenced by a number of variables, including taxation, owner liability, compliance requirement, investment and funding, and exit strategy. A step by step process for registering a company is given here<\/a>.<\/p>

Entity Incorporation \u2013 Documentation\/Approval<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\"\"<\/p>

A sole proprietorship is not a separate legal entity. Incorporating a sole proprietorship in India, which is often referred to as a proprietorship firm, does not involve a formal registration process like corporations or partnerships. The proprietor is personally liable for all business liabilities, and the business is essentially an extension of the proprietor’s personal legal and financial status. The proprietorship firm is governed by various acts depending on the nature of the business, such as the Income Tax Act, GST Act, Shops and Establishments Act, etc.<\/p>

It’s important to note that a sole proprietorship is not a separate legal entity from the proprietor, meaning that the proprietor is personally liable for all the business’s liabilities.<\/p>

However, there are several steps and requirements that a sole proprietor needs to follow to legally operate in India:<\/strong><\/p>

Choose a Business Name
<\/strong><\/span>Select a unique name for the business. There’s no formal process for registering this name, but it’s advisable to ensure that it doesn’t infringe on existing trademarks.<\/p>

Business Registration
<\/strong><\/span>While registration of the business itself isn’t required, the proprietor may need to register under specific government schemes depending on the type of business. For example, if it’s a shop, registration under the Shops and Establishments Act is required.<\/p>

PAN Card<\/strong><\/span>
The proprietor must have a personal PAN (Permanent Account Number) card, as there’s no separate business entity in a proprietorship.<\/p>

Opening a Bank Account
<\/strong><\/span>It’s advisable to have a separate bank account for the business. For this, banks may require the proprietor to furnish proof of the existence of the business, like registration under the Shops and Establishments Act or GST registration.<\/p>

GST Registration<\/strong><\/span>
If the business turnover exceeds the threshold limit (INR 40 lakhs for goods and INR 20 lakhs for services, with variations for some states), then GST (Goods and Services Tax) registration is mandatory.<\/span><\/p>

Other Registrations and Licenses
<\/strong><\/span>Depending on the nature of the business, other registrations like Udyog Aadhaar (for small and medium enterprises), FSSAI License (for food-related businesses), Import Export Code, etc., might be required.<\/p>

Tax Compliance and Accounting<\/strong><\/span>
The proprietor must file income tax returns and comply with GST regulations if registered. Maintaining proper accounts for the business is also crucial.<\/p>

Compliance with Local Laws<\/strong><\/span>
This includes adhering to local municipal regulations, environmental guidelines, and labour laws, if applicable.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\"\"<\/p>

The partnership is not a separate legal entity from its partners. Partners are jointly and severally liable for the firm’s liabilities. Incorporating a partnership firm in India is governed by the Indian Partnership Act, 1932 which outlines the rights, duties, liabilities of the partnership firm and its partners.<\/p>

The process of setting up a partnership firm involves several key steps and requirements:<\/strong><\/p>

Partnership Agreement (Deed)<\/span><\/strong><\/p>

\u2022 Requirement<\/strong><\/span>: Draft a comprehensive partnership deed.
\u2022 Contents<\/strong><\/span>: It should detail the name and address of the firm and partners, nature of the business, capital contribution by each partner, profit-sharing ratio, rights, and duties of partners, etc.
\u2022 Legality<\/strong><\/span>: The deed should be on stamp paper according to the state’s Stamp Act and ideally should be notarized.<\/p>

Registration (Optional but Recommended)<\/span>
<\/strong><\/p>

\u2022 Action<\/strong><\/span>: Register the partnership firm with the Registrar of Firms.
\u2022 Advantages<\/strong><\/span>: Registration provides legal recognition, the right to sue third parties, and protection under the Partnership Act.
\u2022 Documentation<\/strong><\/span>: Application for Registration of Partnership (Form 1), original and copy of the Partnership Deed, proof of principal place of business, and identity and address proofs of partners.
\u2022 Process<\/strong><\/span>: Submit these documents to the Registrar’s office of the state where your firm is located.<\/p>

PAN Card<\/span>
<\/strong><\/p>

\u2022 Requirement<\/strong><\/span>: Apply for a PAN (Permanent Account Number) card in the name of the partnership firm.
\u2022 Documentation<\/strong><\/span>: Partnership deed and identity\/address proof of partners.<\/p>

Opening a Bank Account<\/span>
<\/strong><\/p>

\u2022 Action<\/strong><\/span>:<\/span> Open a bank account in the name of the partnership firm.<\/div>
\u2022 Documentation<\/strong><\/span>:<\/span><\/span> Partnership deed, PAN card of the firm, and KYC documents of the partners.<\/div>
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GST Registration (if applicable)<\/strong><\/span><\/p>

\u2022 Requirement<\/strong><\/span>: Mandatory if turnover exceeds INR 40 lakhs for goods (INR 20 lakhs for services, with variations for some states) or for inter-state business.
\u2022 Documentation<\/strong><\/span>: PAN card of the firm, partnership deed, proof of business address, bank account details, and authorization letter for signatory.<\/p>

Other Registrations and Licenses<\/span><\/strong><\/p>

\u2022 Depending on Business Type<\/strong><\/span>: May need to apply for Udyog Aadhaar, FSSAI License, Import Export Code, Professional Tax registration, etc.
\u2022 Documentation<\/strong><\/span>: Varies based on the specific registration or license.<\/p>

Professional Tax Registration (if Applicable)<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Register for Professional Tax as per state regulations.
\u2022 Documentation<\/strong><\/span>: Varies based on state requirements.<\/p>

Set Up Accounting and Bookkeeping<\/span><\/strong><\/p>

\u2022 Action<\/strong><\/span>: Establish an accounting system for your firm.
\u2022 Note<\/strong><\/span>: Consider using accounting software or hiring a professional accountant.<\/p>

Tax Compliance<\/strong><\/span><\/p>

\u2022 Requirement<\/strong><\/span>: File annual tax returns and comply with GST regulations if applicable.
\u2022 Documentation<\/strong><\/span>: Financial statements, audit reports (if applicable), and other relevant documents.<\/p>

Compliance with Local Laws<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Comply with local municipal regulations, environmental guidelines, labor laws, etc.
\u2022 Note<\/strong><\/span>: Specific compliance requirements depend on the nature of the business and local laws.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\"\"Incorporating a Limited Liability Partnership (LLP) in India is governed by the Limited Liability Partnership Act, 2008. The act governs the establishment and regulation of LLPs in India, providing guidelines on structure, operations, and compliance. This act provides a legal framework for the establishment and operation of LLPs in India.<\/p>

Here are the key requirements for incorporating an LLP:<\/strong><\/p>

Partners<\/span><\/strong><\/p>

\u2022 Minimum Number<\/strong><\/span>: At least two partners (individuals or entities).
\u2022 Designated Partners<\/strong><\/span>: At least two designated partners who are individuals, with at least one of them being a resident in India.
\u2022 DIN for Designated Partners<\/strong><\/span>: Designated partners need to have a Director Identification Number (DIN) or a Designated Partner Identification Number (DPIN).<\/p>

Obtain Digital Signature Certificates (DSC)<\/span><\/strong><\/p>

\u2022 Action<\/strong><\/span>: Acquire DSC for all designated partners.
\u2022 Documentation<\/strong><\/span>: Identity and address proofs of the partners.
\u2022 Providers<\/strong><\/span>: Authorized certifying agencies.<\/p>

Obtain Director Identification Number (DIN) or Designated Partner Identification Number (DPIN)<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Apply for DIN\/DPIN for all designated partners.
\u2022 Form<\/strong><\/span>: Use Form DIR-3 on the MCA portal.
\u2022 Documentation<\/span><\/strong>: Photograph, identity, and address proof of the partners.<\/p>

Name Approval<\/span>
<\/strong><\/p>

\u2022 Unique Name<\/strong><\/span>: The name of the LLP must be unique and not similar to existing company or LLP names.
\u2022 Application<\/strong><\/span>: Apply for name approval using the Reserve Unique Name (RUN-LLP) facility on the Ministry of Corporate Affairs (MCA) portal.<\/p>

Incorporate the LLP<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: File the incorporation form (FiLLiP).
\u2022 Portal<\/strong><\/span>: Submit through the MCA website.
\u2022 Documentation<\/strong><\/span>: Consent of partners, details of partners\/managers, proof of registered office address, subscription sheet signed by the promoters, and other relevant attachments.<\/p>

Draft and File the LLP Agreement<\/span><\/strong><\/p>

\u2022 Action<\/strong><\/span>: Draft the LLP Agreement.
\u2022 Contents<\/strong><\/span>: Define business objectives, partner roles, capital contribution, profit sharing, management policies, etc.
\u2022 Filing<\/strong><\/span>: File the agreement with the MCA within 30 days of incorporation using Form 3.
\u2022 Documentation<\/span><\/strong>: LLP Agreement.<\/p>

Apply for PAN and TAN for the LLP<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
\u2022 Forms<\/strong><\/span>: Form 49A for PAN and Form 49B for TAN.
\u2022 Documentation<\/span><\/strong>: Incorporation certificate and other necessary documents.<\/p>

Opening a Bank Account<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Open a bank account in the name of the LLP.
\u2022 Documentation<\/strong><\/span>: LLP incorporation certificate, LLP Agreement, PAN card, proof of registered office, etc.<\/p>

GST Registration (If Applicable)<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Register for GST, if required.
\u2022 Criteria<\/strong><\/span>: Mandatory if turnover exceeds the threshold or for inter-state supply of goods\/services.
\u2022 Portal<\/span><\/strong>: Register on the GST portal.
\u2022 Documentation<\/strong><\/span>: Business details, bank account details, and other relevant information.<\/p>

Additional Registrations and Licenses<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Depending on the business type, obtain necessary registrations and licenses (e.g., FSSAI, Professional Tax, Shop and Establishment Act).
\u2022 Documentation<\/strong><\/span>: Varies based on specific registration or license.<\/p>

Compliance and Annual Filings<\/strong><\/span><\/p>

\u2022 Annual Return<\/strong><\/span>: Filing of Form 11 (Annual Return) and Form 8 (Statement of Account & Solvency) every year.
\u2022 Audit Requirements<\/span><\/strong>: Mandatory audit if turnover\/receipts exceed prescribed limits.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\"\"Incorporating a private limited company in India is governed by the Companies Act, 2013. This act outlines the legal procedures, rights, duties, and obligations involved in forming a private limited company.<\/p>

Here are the key requirements for incorporation:<\/strong><\/p>

Directors and Shareholders<\/span><\/strong><\/p>

\u2022 Minimum Directors<\/strong><\/span>: Two (at least one must be an Indian resident).
\u2022 Maximum Directors<\/strong><\/span>: Fifteen (can be increased with a special resolution).
\u2022 Shareholders<\/strong>:<\/span> Minimum of two and a maximum of 200.<\/p>

Obtain Digital Signature Certificates (DSC)<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Get DSC for the proposed directors of the company.
\u2022 Documentation<\/strong><\/span>: Identity proof and address proof of the directors.
\u2022 Provider<\/strong><\/span>: Acquire from a certified agency authorized by the Ministry of Corporate Affairs (MCA).<\/p>

Obtain Director Identification Number (DIN)<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Apply for DIN for each proposed director.
\u2022 Form<\/strong><\/span>: Form DIR-3 on the MCA portal, linked to their PAN or Aadhaar.
\u2022 Documentation<\/strong><\/span>: Photograph, identity, and address proof.<\/p>

Name Approval<\/span>
<\/strong><\/p>

\u2022 Action<\/strong><\/span>: Apply for the company name approval.
\u2022 Form<\/strong><\/span>: Use the ‘Reserve Unique Name’ (RUN) facility on the MCA portal.
\u2022 Criteria<\/strong><\/span>: The name should be unique and not similar to any existing company or LLP.<\/p><\/div>

Incorporation Documents<\/span>
<\/strong><\/p>

\u2022 Memorandum<\/strong> <\/span>of Association (MoA): Outlines the objectives, scope, and activities of the company.
\u2022 Articles of Association (AoA)<\/strong><\/span>: Details the rules and regulations governing the internal management of the company.
\u2022 Other Documents<\/strong>:<\/span> Affidavits and declarations by directors, proof of registered office (rent agreement or utility bill), NOC from the owner, etc.<\/p>

File Incorporation Application (Form SPICe+)<\/span>
<\/strong><\/p>

\u2022 Action<\/strong>:<\/span> Complete and submit the SPICe+ form (INC-32).
\u2022 Attachments<\/strong><\/span>: MoA, AoA, declarations, proof of registered office, and other relevant documents.
\u2022 Portal<\/strong>:<\/span> File through the MCA portal.<\/p>

PAN and TAN Application<\/span>
<\/strong><\/p>

\u2022 Integrated Application<\/strong>:<\/span> PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) can be applied for within the SPICe+ form.
\u2022 Issuance<\/strong><\/span>: PAN and TAN are issued along with the Certificate of Incorporation.<\/p>

Opening a Bank Account<\/span>
<\/strong><\/p>

\u2022 Action<\/strong><\/span>: Open a bank account in the name of the company.
\u2022 Documentation<\/strong><\/span>: Certificate of Incorporation, MoA, AoA, PAN, and other KYC documents of the directors.<\/p>

Register for GST (if applicable)<\/strong><\/span><\/p>

\u2022 Action<\/strong><\/span>: Register for Goods and Services Tax (GST) if required.
\u2022 Portal<\/strong><\/span>: Through the GST online portal.
\u2022 Documentation<\/strong><\/span>: Business details, bank account details, and other relevant documents.<\/p>

Apply for Other Necessary Registrations<\/span><\/strong><\/p>

\u2022 Examples<\/strong><\/span>: Professional Tax, Employee Provident Fund (EPF), Employee State Insurance (ESI), etc.
\u2022 Dependent on:<\/span><\/strong> Nature of business and employment.<\/p>

Ensure Compliance<\/span><\/strong><\/p>

\u2022 Regular Filings<\/strong><\/span>: Annual filings with MCA, GST returns (if registered), Income Tax Returns, etc.
\u2022 Statutory Audit<\/strong>:<\/span> Conduct an audit of the accounts annually.<\/p>

Note: For precise legal and procedural guidance, it is advisable to consult with legal experts or professional advisors or chartered accountants familiar with Indian corporate law.<\/em><\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Doing Market Assessment and Competitive Analysis<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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After understanding the need of its customers being catered to, a business should conduct a study of its market size in order to make informed business decisions. The market assessment involves studying the market size, attainable market share, product adoption rate, historical and projected market growth rates, market saturation and macroeconomic factors influencing the market one intends to target. The market assessment will help in finalizing the product placement and pricing for any enterprise\u2019s\u00a0 product.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Before entering into a market an entrepreneur should do a thorough Competitive Analysis of the market. It is important to present a realistic image of the competition and other market participants that are working on related products. The competitive analysis includes study of market share of competitors, their strengths and weaknesses, importance of target market to your competitors, entry barriers, share that can be gained in near future, product mapping to show the similarities and distinctions among various rival offerings and presence of indirect or secondary competitors who may impact a product\u2019s success.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Preparing Business Proposal<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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A sound business proposal helps an entrepreneur at every stage of a business. It ensures that the company’s offering is clearly communicated to all the relevant stakeholders and the company is able to attract new investors or business partners. A well-written business plan will act as a tool to persuade partners that working with this enterprise is the right move.<\/span><\/p>

A business plan can be broadly based on below outline and may capture below components:\u00a0<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tExecutive Summary<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

The executive summary should effectively capture key points that are mentioned in the detailed proposal helping the stakeholders get a bird\u2019s eye view of the proposal. <\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCompany Details<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

In this section, the company should give details about its business model. The company should be precise in detailing the issues that the firm plans to resolve and list the people, groups, or companies that will be assisted through the same. It should include the list of enterprise\u2019s suppliers and customers and take into account factors responsible for product’s stickiness with customers, agreements with vendors, etc.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tMarket and Competition Analysis<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Market and Competition Analysis<\/a><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tOrganization Structure and Management Team<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

This section will capture the organization structure (legal and in terms of shareholding) and the management team responsible for managing the day to day operations of a business. The proposal can also include individual work experiences of team members and how its relevance will lead to success of this business.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tFinancial Assessment and Funding Requirement\t<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

A thorough business proposal should include financial projections displaying profit and loss, balance sheet and cash-flows statements over time, investment needed, break-even points, and growth rates. The assumptions used in the financial projections should be explicitly stated to the satisfaction of the investors.
If the proposal also includes a request for raising the funds, the funding requirements should be clearly highlighted capturing the end-use of funds and the payback period for an investor. The financial projections will help in making effective pitch to both equity and debt investors showing adequate returns from investing in the business and adequacy of cash flows for servicing of debt.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAnnexures<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

The Annexures can be used to provide any material that was specifically mentioned in the proposal as a supporting documentation. It may include details on sale\/purchase agreements, credit histories of founders, resumes, product images, letters of recommendation, licenses, permits, patents, and other contractual details relevant to the business.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Calculating Business profitability<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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An enterprise can calculate profitability of its business by assessing its costs and doing break-even analysis. The break-even is reached when overall costs and total revenues are equal, leaving a firm with no net profit or loss. i.e. revenue from a product equals the cost of manufacturing the product. The enterprise should organize its expenses which can broadly fall into rent, equipment and supplies, communications, utilities, licenses and permits, insurance, lawyer and accountant, inventory, employee salaries, advertising and marketing, market research, printed marketing materials or making a website. The company should organize these expenses into fixed and variable costs (cost dependent on volume of production) in order to arrive at a break-even point for the business. A sample template to do break-even analysis can be downloaded here<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Finance your business <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Due to lack of a successful track record, risks associated with the novelty and innovation involved in the product proposition, it is difficult for a business to avail funds from a traditional financing institution like a Bank, Non-banking financial companies (NBFCs), etc. At the time of starting a business, the funding requirements can be taken care of by early stage venture capital investors or under the government programs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tVenture capital investors<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Venture capital is a significant source of investment for small and medium sized firms. Venture capitalists are experts in a range of fields and will invest in a business after assessing its potential to generate profits. The venture capital investments take place through equity or equity-like products and investment is done majority of times in lieu of some stake in the business venture.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tGovernment Programs<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

The Government, both at the Central and State Levels has been adopting a number of policy actions to meet the capital needs of an entrepreneur through establishing financial institutions and devising various policies and programmes, etc. The Government of India, through Start Up India have made a conducive ecosystem for supporting the budding entrepreneurs of the country. The various government schemes for Start Ups being supported by different Central Ministries and Departments can be viewed here<\/a>.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Starting an Enterprise Register your business In India, there are five main kinds of legal entities from which to choose when conducting business. These are the Limited Liability Partnership, Sole Proprietorship, Partnership Firm, Private Limited Company, and Public Limited Company. The selection of the company entity is influenced by a number of variables, including taxation, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-site-content-layout":"full-width-container","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-4229","page","type-page","status-publish","hentry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/enterprisehub.org.in\/index.php\/wp-json\/wp\/v2\/pages\/4229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterprisehub.org.in\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/enterprisehub.org.in\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/enterprisehub.org.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterprisehub.org.in\/index.php\/wp-json\/wp\/v2\/comments?post=4229"}],"version-history":[{"count":460,"href":"https:\/\/enterprisehub.org.in\/index.php\/wp-json\/wp\/v2\/pages\/4229\/revisions"}],"predecessor-version":[{"id":5064,"href":"https:\/\/enterprisehub.org.in\/index.php\/wp-json\/wp\/v2\/pages\/4229\/revisions\/5064"}],"wp:attachment":[{"href":"https:\/\/enterprisehub.org.in\/index.php\/wp-json\/wp\/v2\/media?parent=4229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}