Starting Your Own Company? Read On
An aspiring entrepreneur needed help on following questions. I thought a wider audience would benefit from our conversation through mail. I'm posting questions and my answers here -
1) How did you get your company's name registered?
K: If you want to incorporate a company, you'll need partners (board of directors). The first step is to get Director Identification Number (DIN) from MCA's official website. The simpler way to do all this is to get in touch with a local Company Secretary or a CA and have them do it for you.
2) M currently located in Raipur but since ma whole idea is of online type can i get it registered from other place i.e. out of the state for eg: bangalore
K: You need to provide an address for your office. You sure can register anywhere, but then talk to your bank before you do that. There might be few problems with the bank account opening in the name of your company. I won't recommend registering office in another city - if you're doing it just for the big-city name's sake.
3) How did you handle all the legal aspects of the corporate stuff?
K: I won't recommend forming a company unless you 'really need to'. The CA will help you with everything but it's a long learning process. If you're just starting, focus on building your product/service/offering first, make it work, find customers and so on. As for CrazyEngineers, we formed company after 4 years in actual business. Until then it was all on my own name.
4) What was the approximate cost one need to invest before actually investing in your idea. I mean the expenditure in all the registration & legal procedures.
K: Company formation process may take anywhere between 12k - 20k INR. Legal fees are are ongoing and mostly yearly. It will depend on the nature and scope of your business. I'd strongly advise not wasting your time forming a company if you're still in 'idea' stage. Use your personal finance, borrow money from your parents and trusted friends ONLY if you need to.
It's awesome to get 'CEO' title and all, but it should come later - when you've something 'working' and actually ready to be a 'business'. I hope you got my point. More about this, on CE Forums 😀
1) How did you get your company's name registered?
K: If you want to incorporate a company, you'll need partners (board of directors). The first step is to get Director Identification Number (DIN) from MCA's official website. The simpler way to do all this is to get in touch with a local Company Secretary or a CA and have them do it for you.
2) M currently located in Raipur but since ma whole idea is of online type can i get it registered from other place i.e. out of the state for eg: bangalore
K: You need to provide an address for your office. You sure can register anywhere, but then talk to your bank before you do that. There might be few problems with the bank account opening in the name of your company. I won't recommend registering office in another city - if you're doing it just for the big-city name's sake.
3) How did you handle all the legal aspects of the corporate stuff?
K: I won't recommend forming a company unless you 'really need to'. The CA will help you with everything but it's a long learning process. If you're just starting, focus on building your product/service/offering first, make it work, find customers and so on. As for CrazyEngineers, we formed company after 4 years in actual business. Until then it was all on my own name.
4) What was the approximate cost one need to invest before actually investing in your idea. I mean the expenditure in all the registration & legal procedures.
K: Company formation process may take anywhere between 12k - 20k INR. Legal fees are are ongoing and mostly yearly. It will depend on the nature and scope of your business. I'd strongly advise not wasting your time forming a company if you're still in 'idea' stage. Use your personal finance, borrow money from your parents and trusted friends ONLY if you need to.
It's awesome to get 'CEO' title and all, but it should come later - when you've something 'working' and actually ready to be a 'business'. I hope you got my point. More about this, on CE Forums 😀
Replies
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CIVILPRINCESSeven if it is a venture which has nothing online do you recommend the forming of company after some time. i mean when you go and visit clients they may be more convinced if you have a proper company name right:?:
also you are saying you need partners. what if it is a students venture? then there are no financial partners right? what about this case:?: 😀 -
Kaustubh Katdare
I believe a company needs to be formed only when the ventures reaches a certain level where having a company name can get you an advantage. It's nothing to do with you with your business's online presence. The best way to get started would be to form a proprietorship firm (in India) and do the business in its name. Because once you form a company there are tons of formalities you'll have to worry about.CIVILPRINCESSeven if it is a venture which has nothing online do you recommend the forming of company after some time. i mean when you go and visit clients they may be more convinced if you have a proper company name right:?:
also you are saying you need partners. what if it is a students venture? then there are no financial partners right? what about this case:?: 😀
A partner could be anyone - your friend, your mother, your sister or anyone. You need partners to form a company. Even students can form company - it isn't a rocket science at all. You just need a professional to help you with the formalities to form a company. Actually, you can do it on your own without needing anyone and even stepping out of your home. Everything you need is available on MCA website and they accept payments through web.
See, a company gives you a better standing in front of your customers, clients and also brings in more professionalism in your operations. But a startup need not waste time and money in forming a company. Work on the first problems and find the client. Ask your first client whether he'd like to deal with you or a company formed by you. 😀. You may even start a partnership based venture where you'll share the liabilities.
I'm happy you asked this question. I guess we can start many such doubt clearing threads to help and educate all CEans who want to start their own business. -
CIVILPRINCESSok. so you would say form a group and start of with the building of the company. when the venture flourishes we can do the formalities like forming the company. right:?: could you please provide the link to the MCA website and list the procedures there? 😀
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