Tips:Before you start your own business

Every body wants to do his own business.But, most of the people don’t know exactly what are the initial formalities to be completed before starting a business. I am sharing brief stepwise suggestions to start a traditional business:

1. Concept: First think about your future business, the concept of your future business as much as you.
2. Selection of business: If you decide what type of business you want to start then only you could be able to decide from which place/market/shop you would like to start. If you need a office/shop then arrange to hire one office/shop or purchase one at suitable place/market. If you decide hired one then do hiring in writing on due agreeable terms and conditions to both side.
Decide a name for the business, you want to start. Name should be transparent enough so that it clearly reflect your business.

You think if it is possible, your business can flourish from any where with out a office/shop, then you need a address only for legal formality.

3.Local permission/License:
First, get registered in shop license from local office of
labour commissioner.
4.Opening Bank Account: On the basis of that certificate you can get opened your Current Account with any pvt/nationalised bank of your choice.
5.Legal structure:
If your choice for business structure is proprietorships then its OK but, if you like to have your friend,wife, or bro as your partner in your business then you would require a partnership deed where everything will be in writing whatever consequences comes in decided on
the basis of this partnership deed. Capital sharing, profit/loss sharing ratio, etc. will be written in the partnership deed. Do not forget Notary Attestation of partnership deed.
Company Registration under company act 1956: You can get registered your business under company act as Pvt Ltd Company/Public Ltd Company.

6.PAN Card Registration: It is must for any type of business now a days. There is benefit also, many a times PAN No. Asked for any legal formality.

7.Sales Tax Registration is also required if you are in selling business or if you are starting some service/consultancy related business and annual turnover will be more than Rs. 10,00,000/- then you require Service Tax registration also.

Now, almost you are ready to move on the track.

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