How women can start business in India – Company Registration for Women

 

Feminism isn’t about making women strong. Women are already strong. It’s about changing the way the world perceives that strength. Women are not going to be seen in their kitchen with their knife and vegetable anymore. With the help of media and social networking, these modern women are heading fast from job seekers to job creator.

Now, India has countless talented female entrepreneurs in their treasure that despite from facing challenges in their day to day routine stands themselves in this harsh market.

According to Dell Women’s Global Entrepreneurship Study conducted among 450 women entrepreneurs across India, the US, and the UK, by research firm Penn Schoen Berland, found that Indian entrepreneurs are more confident of their business growth, as compared to counterparts in the US and the Uk.

Things are changing in India, and more or more women are coming forward to fulfill their dreams to become entrepreneurs and starting their business.

Steps to take for starting business in India

1. Choose the Business Idea wisely

Necessity is the mother of all inventions and hence, sells what people need. Deciding on your business idea is the most important part and yeah its quiet time taking, so think twice thrice or hundred times before shaping your idea into concrete.

Things keep in mind while deciding your business idea,

• Keep your eyes open and observe things around you, 
• Check what market needs and do not have
• Check  customer pain and problem they are facing,
• See how you can ease out their life with your product

So, after choosing your idea wisely, let’s move to next step.

2. How to start – Choose your type of business

There is a number of options available to start your business in India like a sole proprietorship, partnership, LLP etc. However, one must choose one of them based on their pros and cons. This is because choosing a business entity is a choice a vehicle and you cannot buy a cycle to travel 500 km.

As said, there are basically three types of form of business which should be analyzed, i.e. proprietorship, LLP, and company.

Hence, to help you choose the business form wisely, we have prepared a table analyzing certain parameters based on which you can take the decision.

Point	Sole Proprietorship	LLP	Company
Meaning	It has no legal registration. It is basically the individual himself.	LLP is registered under LLP act, 2008 and it has a separate legal existence in the eyes of law.	The company is registered under Companies, act 2013 and also enjoys separate legal existence in the eyes of law.
Registration	It can register with any local license like GST registration etc.	It has a separate procedure prescribed. The process is 100% online.	Companies are registered online on mca.gov.in. You need a CA to register it.
Time	It takes around 3 to 4 days	It takes around 15 to 20 days.	It takes around 5 to 10 days
Cost	It cost around Rs.1500/-	It cost around Rs.8,499/-	It cost around Rs.9,999/-
Tax rate	Individual slab rate	30% plus surcharge	25% plus surcharge
Recommendation	Least recommended	Moderate	Highly recommended

 

Why do we recommend Private Limited Company registration?

Private Limited Company is one of the finest forms of business available in India. The private limited company offers you the most flexibility and an advantage to carry out any type of transactions like ESOP’s, Fundraising etc.

Further, a private company is the most trustworthy type of business form and recognized worldwide. Also, it helps you to draft clear terms between the founders which help to create healthy relations between the founders.

Company Registration Procedure

The company registration (also known as ‘mca registration’) has become very easy and it can be done in very less time. Nowadays, there is no need to waste your time waiting in the government offices for your turn to come, by this I mean, you can register your company online while sitting in the parlor too.

With the guidelines of the MCA, India has made the process very efficient and effective and you can get our company in just 5 to 10 days. But for that, you must follow the procedure as explained here:

• Documents required- the very first step of the company registration is to prepare and arrange all the documents which are required for registration of companies. The list of the documents are following –
  • Photo
  • PAN (Permanent Account Number)  
  • Identity proof - (Aadhar card, Voter –id, driving license – Anyone)
  • Address proof - (Electricity Bill, Bank Statement - Anyone)
    
    You can upload the soft copy of these documents electronically on the government website.
     
• Digital Signature Certificate (DSC): DSC is an electronic signature which is necessary when filing the form online on the government site. You will get your DSC in 1 to 2 days and it will charge a very minimal amount of around 600 to 1000 to your pocket.
   
• Company name approval: After getting your DSC, the next step is to give your company a name and for that, you need to file a RUN form in the prescribed manner by accessing the MCA portal online. ROC will check and verify the duplicity of the name and if it finds its ok, then it approves it.
  
  Read: 10 rules for picking up a Company name

 

• Get the paperwork done: There are certain things which you need to draft and finalize before you can move to final incorporation form:
   
  • MOA & AOA - Memorandum of Association and Article of Association are the most important document for your company registration, basically, they are the root of the company. They contain the power and rules of the company.
     
  •  PAN& Tan-   Permanent Account Number & Tax Deduction and Collection Account Number are required for company registration. It is mandatory to have PAN and TAN, who has taxable income in India. 
     
  • Authorised capital - the authorized capital is the maximum capital you can invest in the company. Higher you go with capital higher you need to pay the cost of registration.
     
• File for Company Registration: After all documents and approval, the final step is to incorporate the company. You need to file an application form for registration of a company to MCA on its portal. All documents MOA, AOA and DSC are submitted here with the SPICE FORM. If all goes well, the company is incorporated; ROC will issue a certificate of incorporation online.

Other important things to remember

There are certain things you need to keep in mind while going for registration of the company.

• Registered office: While you are going for the company you need a registered office. It will work as your head office, all your important documents and information going to be reaching you here.
   

• Bank account: After the incorporation of the company, you need to open a bank account in the name of the company to start your transactions.

Budgeting and Finance 

It is very important in business to have finance, without finance the company will be a fish without water, so budgeting and finance are one of the important things which you need in your company, they work as the pillars of the company.

And, here you got something exclusive from the government it is for those enthusiastic female entrepreneurs who wish to come forward to taste the thrill. The government has provided various finance and budgeting scheme for the female entrepreneurs.

Mudra Yojana Scheme  for women

Under this scheme, the government has provided finance facility for those female entrepreneur wanting to start the small new enterprise like a beauty parlor, tailoring unit, tuition centers, etc.

This loan doesn’t require any collateral security and can be availed as per the three schemes.

• Shishu: Under this scheme, the loan amount is limited to fifty thousand rupees and can be availed by that business that is in their the very first stage.
   

• Kishor: Under this scheme, the loan amount is disbursed somewhere in between fifty thousand to five lakh rupees can be availed by those who have a well-established enterprise.
   

• Tarun: Under this scheme, a loan amount of ten lakh rupees can be availed by those businesses that are well established but require funds for the purpose of the expansion.

Women entrepreneur and marketing

Marketing is the heart of your business success, everything lies in the hands of the marketing, how excellently you can market your business is the most important task.

You may be heard of that story of that small kid who sowed a seed and reached to the sky in just one night. Same goes here, the seed is the incorporation of the company and the magic tree is your marketing skill to reach the sky. 

Your marketing skills give you the brand name, the reputation in the market and healthy competition too. It also boosts up your sale, and with the sale, the things of every good marketing should also cover advertising, promotions, public relations and too.

Conclusion

I hope you got the idea for shaping your idea into concrete from this article. The process has been made very easy and cheap for registering your company and for any info, you can email us at info@hubco.in.