Incorporation of a company needs many compliances, what are the other possible ways to start a business?
As per various rules, regulations made in the Companies Act, 2013 and other applicable legislation and amendments made therein, it has become cumbersome for small private companies to comply with changing compliance requirements each day. Considering such compliances, it’s difficult for entrepreneurs with limited skill & knowledge to start up their new venture.
So, shall include :
- Limited Liability Partnership (LLP)
There is no minimum criteria of funds required to start an LLP, with the security of funds, the organization placed in the form of an LLP, specifies for limited liability of partners and many other lucrative benefits to enhance the practice of business.
An LLP is also required to file an Annual Return showing details of holdings of designated partners, other partners, other particulars of operations on an annual basis. Filling annual return, Form 8 is to be filed showing details of assets and liabilities and operations performed during the financial year.
- Sole Proprietorship
The Sole Proprietorship is opted by the person who wants to starts a business with minimal capital and basically wants to earn for their living. It requires dealing with local vendors. This can be in the form of kirana shops, trading, wholesale business, etc.
When two or more persons who want to start a business and are willing to contribute to the firm in the form of money, assets, other assets based on the mutual understanding can start the partnership.
The partnership can be registered or unregistered. But the registered form of partnership has several advantages over the unregistered form of partnership with regard to legal advantages, preference in case of disputes between the partners and right to sue third parties.
Trust can be formed for benefit of specified beneficiary or beneficiaries in case of a private trust, thus you can secure the interest in the property and can start a business.
The Indian Trust Act governs the formation and management of a trust.
- Non-Profit Organization
Companies Act, 2013 also governs the formation and management of the non-profit organization. Section 8 company is a form of organization which secures the interest of the public and prohibits the payment of profits to members.
Persons who are willing to form NPO are required to take registrations per terms stated in Companies act, 2013.