You need to hire different professionals for the above work. The charges may vary. lllp is better option
New business setup paperwork needed with cost
Hello Myself and my friend wants to setup a company(personal small amount investment only) which will have multiple brands under it dealing with hair care, skin care, personal care etc. We will have 3rd party manufacturers to manufacture our new ideas. We will be using e-commerce to sell the products. 1. what are the paperworks needed for the same and the cost for it? NDA, GST, CIN, Trademark reg. etc etc? 2. What we shud register this company as and cost for it? LLP, OPC etc etc. What will be the tax implications in future? 3. What will be the annual maintenance expense to maintain the company registration? 4. Who will be the best professional to make above documents? CA or a corporate lawyer or just an attorney?
Asked 1 year ago in Business Law
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6 Answers
1) contact a CA for formation of company
2) you can set up a LLP or private limited company
3) costs local CA would be the best guide in this regard
1. GST and Trademark registration is necessary
2. You can register LLP . Contact a CA for getting property information of the tax implication
3. The average cost of yearly maintenance of Private Limited Company is between 10,000 to 15,000 depends upon your turnover, and the average maintenance cost would be around 8000 to 10,000/- in case there is no turnover.
4. CA
If you want to incorporate your startup as a partnership business, you need to follow the normal procedures for registration of a partnership firm. Then, it is advisable to also register your business as a startup with StartUp India.
According to the Companies Act, 2013, the minimum number of members required to form a partnership business is 2 while the maximum number of members can be 100 and not more than that.
it is possible to start a startup with multiple products under one private limited company.
The following steps to be followed
Step 1: Incorporate your Business
You must first incorporate your business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership. You have to follow all the normal procedures for registration of any business like submitting the registration application and obtaining the Certificate of Incorporation/Partnership registration.
Step 2: Register with Startup India
Step 3: Get DPIIT Recognition
The next step after creating the profile on the Startup India Website is to avail the Department for Promotion of Industry and Internal Trade (DPIIT) Recognition. This recognition helps the startups to avail benefits like access to high-quality intellectual property services and resources, relaxation in public procurement norms, self-certification under labour and environment laws, easy winding of company, access to Fund of Funds, tax exemption for 3 consecutive years and tax exemption on investment above fair market value.
Step 4: Recognition Application
On the ‘Startup Recognition Form’, you need to fill the details such as the entity details, full address (office), authorised representative details, directors/partner details, information required, startup activities and self-certification.
Register with Startup India Then the business must be registered as a startup.
Step 5: Documents for Registration
- Incorporation/Registration Certificate of your startup
- Proof of funding, if any
- Authorisation letter of the authorised representative of the company, LLP or partnership firm
- Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup)
- Patent and trademark details, if any
- List of awards or certificates of recognition, if any
- PAN Number
Step 6: Recognition Number
That’s it! On applying you will get a recognition number for your startup
Step 7: Other Areas
Patents, trademarks and/or design registration: If you need a patent for your innovation or a trademark for your business, you can easily approach any from the list of facilitators issued by the government.
For business through ecommerce: You don't need to register a company but you will have to register your business as some form of organisation to run your ecommerce business smoothly.
Dear Client
Setting up a company involves several legal and administrative steps. Here are some legal remedies and considerations for starting your e-commerce business with multiple brands under it:
Required Paperwork and Costs:
a. NDA (Non-Disclosure Agreement): If you plan to share proprietary information with third-party manufacturers, it's advisable to have them sign an NDA to protect your intellectual property. Legal costs for drafting an NDA can vary but are typically reasonable.
b. GST Registration: If your annual turnover is expected to exceed the prescribed threshold (which varies by country), you may need to register for Goods and Services Tax (GST) or its equivalent. The cost for GST registration can vary depending on your location.
c. CIN (Company Identification Number): If you choose to register your company as a Private Limited Company or Limited Company, you'll receive a Corporate Identification Number (CIN). The cost of incorporating such companies can vary but is usually higher compared to other business structures.
d. Trademark Registration: To protect your brand names and logos, it's advisable to register trademarks. The costs for trademark registration vary based on the number of classes you register under and the region/country in which you seek protection.
Choice of Business Structure:
You mentioned considering Limited Liability Partnership (LLP) or One Person Company (OPC). The choice of business structure should be based on various factors, including your long-term business goals, tax implications, and liability. Here are some points to consider:
LLP: Provides limited liability for partners and is relatively easier to set up compared to a Private Limited Company. Tax implications can be favorable, as LLPs are often taxed similarly to partnerships. Annual compliance costs are generally lower compared to companies.
OPC: Suitable if you want to operate as a single owner. OPCs also offer limited liability. Tax implications depend on your income and may be similar to those of sole proprietorships or individual taxation.
Consult with a chartered accountant (CA) or tax consultant to assess the tax implications based on your specific circumstances.
Annual Maintenance Expense:
The annual maintenance expenses for a company can vary depending on its structure, size, and compliance requirements. Generally, an LLP has lower annual compliance costs compared to a Private Limited Company. Expect to incur expenses related to accounting, annual filings, audits, and other statutory compliance requirements. Consulting a CA can help estimate these costs more accurately.
Choosing a Professional:
Chartered Accountant (CA): CAs specialize in taxation, financial planning, and compliance. They can assist with GST registration, tax planning, and financial matters.
Corporate Lawyer: Corporate lawyers specialize in legal aspects of business, including drafting contracts, agreements, and ensuring compliance with laws and regulations. They can help with drafting NDAs, shareholder agreements, and other legal documents.
Attorney: An attorney can provide legal advice and draft legal documents, but their expertise may vary depending on their specialization.
It's often advisable to consult both a CA and a corporate lawyer to cover both financial and legal aspects of your business. They can provide comprehensive guidance on the setup and ongoing compliance requirements of your company.
Where you want to set up the Company ? Which city ?
