Wow, the idea to start or run a Private Limited Company. seems very intriguing. Although it depends on the scale of the organization. You might want to start from the low and then start climbing the ladder to success. Also starting your own company can be very profitable. But the more profit you make the more risk you’ve taken. And Vice versa.
Firstly, some more about a Private Limited Company
A Private limited company is an organization that has a certain number of members and the company purely stands for profit purposes. Minimum numbers of members in a Private Limited co is 2 and the maximum number of members is 200. It is a legal entity and can act as an individual body, like, it can sue any member of its own company, any other company or the member of any other company -in its own name. It is separate from its own members and owners.
It has the feature of Perpetual Succession. It means coming and going of any member /shareholder DOES NOT affect the working of a company! The life of the company goes on forever.
Also, the company has Limited liability! It means that even if the company goes bankrupt or it dissolves, the liability of the company is limited to the assets and shares of the company. It can not/would not demand any of the member’s personal assets, properties and belongings! We have an advantage here-
Tips to Start your own small company and maintain it:
1) Plan your plan- Make a plan and make it easy. Highlight all the steps to be taken and achieve them with efficiency.
2) After you’ve planned what you’ve got to do, Search more about it. Learn what is to be done more effectively and how much cost you can save in doing all the activities.
3) You might want to learn about the location of the company.
For example, if you would want to choose a secluded area for your company if you know the company will make any type of pollution or you would ensure the supply of electricity and water is regular in the area where your company will be located.
How much is the Cost to Start or run a Limited Company?
It usually depends on the field of the business you want your company to start in. Is manufacturing? Is it trading? The capital varies from business to business. The more funds you have the more it is beneficial for the company only if you if you plan everything economically.
Registration is a must!
The government requires all businesses to get a number of licenses. If you offer a service, then you must charge customers service tax (for which a service tax registration is necessary) once your turnover crosses a certain amount; if you sell goods you need to charge customers sales tax (sales tax registration) once your sales cross a certain amount; if you have employees, you need to deduct Professional Tax.
You can apply for the licensing agreements online too! The capital for a small scale private limited company may include the starting cost of Rs.50, 000 to Rs.100,000. More if you’re planning to recruit.