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Sir i would like to start a micro business in food segment having investment of Rs.6 lacs. Wanted to know the procedure . Which organisation i should register sole proprietorship or private limited.
- Considering that your initial investment is Rs. 6 lacs, it would be advisable to initial start the business as a sole proprietorship. The main benefit of a sole proprietorship is that there is no requirement under law for registration of a sole proprietorship. The only requirement would be to have a PAN card, GST registration etc. The costs inv...
W Network
caSir i would like to start a micro business in food segment having investment of Rs.6 lacs. Wanted to know the procedure . Which organisation i should register sole proprietorship or private limited.
-
W Network
ca- Considering that your initial investment is Rs. 6 lacs, it would be advisable to initial start the business as a sole proprietorship. The main benefit of a sole proprietorship is that there is no requirement under law for registration of a sole proprietorship. The only requirement would be to have a PAN card, GST registration etc. The costs involved in fulfilling these requirements are not very high.
- Further since you would be engaging in food business, necessary registration/license, (as the case may be and depending on the annual turnover etc.) under the Food Safety and Standards Act, 2006 would be required to be taken.
- Later on, in case you intend to scale up business, attract investors or there arises a requirement for you to have an incorporate entity, you can convert the sole proprietorship into a Private/Public/One Person Company. In such a case, the company would be bound for compliances and Corporate Governance under the Companies Act, 2013.
- Further, in case you want your entity to be recognised as a Micro, Small or Medium Enterprise, you can take necessary registration under the Micro Small and Medium Enterprises Development Act, 2006 by fulfilling the criteria provided therein, which would entail hosts of benefits such as preferential treatment in government tenders, quicker payment schedules as per the Act, etc.
For any legal or Accounting requirement, happy to help 'Get your Wazzeer'
over 3 years ago
View answer
Sir i would like to start a micro business in food segment having investment of Rs.6 lacs. Wanted to know the procedure . Which organisation i should register sole proprietorship or private limited.
-
W Network
ca- Considering that your initial investment is Rs. 6 lacs, it would be advisable to initial start the business as a sole proprietorship. The main benefit of a sole proprietorship is that there is no requirement under law for registration of a sole proprietorship. The only requirement would be to have a PAN card, GST registration etc. The costs involved in fulfilling these requirements are not very high.
- Further since you would be engaging in food business, necessary registration/license, (as the case may be and depending on the annual turnover etc.) under the Food Safety and Standards Act, 2006 would be required to be taken.
- Later on, in case you intend to scale up business, attract investors or there arises a requirement for you to have an incorporate entity, you can convert the sole proprietorship into a Private/Public/One Person Company. In such a case, the company would be bound for compliances and Corporate Governance under the Companies Act, 2013.
- Further, in case you want your entity to be recognised as a Micro, Small or Medium Enterprise, you can take necessary registration under the Micro Small and Medium Enterprises Development Act, 2006 by fulfilling the criteria provided therein, which would entail hosts of benefits such as preferential treatment in government tenders, quicker payment schedules as per the Act, etc.
For any legal or Accounting requirement, happy to help 'Get your Wazzeer'
over 3 years ago
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