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 😀
