According to Section 3 (1) (i) of Companies Act, 1956, “company is the organization which is formed and registered under this law or any previous law.” The company is an artificial person having separate legal entity made up of an association of persons for carrying on an industrial enterprise. It can purchase assets or sell it and assets of the company are not the property of its members. It can open a bank account and can take debt. The company exists even if its members die, so in other words, company liquidation is possible by law only.
Before starting a company, you need to consider certain important points to succeed.
Evaluate certain things– before starting, just analyze whether you have the capacity to become an entrepreneur, are you ready to take risks, how much money you can invest at the initial stage. You should have the traits to handle a firm for the long run.
Pick one idea– don’t start your company with an idea that everyone already has. Because they are earning money out of their idea is not the basis for starting a company. Chose an idea that you can perform with due diligence. You should have personal knowledge regarding your services.
Incorporate idea– after selecting an idea, now start making a plan. How are you going to target market with right tools? Who will be your customers? What will be your criteria for selecting employees? What will be the manner to provide services? How much time your product will take to establish in the market?
Identify your market– you cannot market your product everywhere. Choose relevant market. Prepare a competitive assessment. How much time your product will take to establish in the market? Determine the cost budget and find investors who are willing to invest in your idea.
Interact with investors– search investors who are willing to understand your idea and listen to them if they have a better strategy. Investors provide a huge financial assistance in incorporating a company.
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