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What is start up?
Startups are businesses which have been started with a idea behind it and which have very limited operating history. Even business idea, which has not really taken a form of business but supported with diligent facts and plans can also be termed as Startup. Startup can also be termed as seed, which has a mentor to be become a full grown tree. It is always not necessary that startup will turn into a real business.
How start up can set up their business?
Setting up Business is an important decision and it involves considering various types of factors and any wrong decision, may affect the business on a long term. Therefore in order to know everything about setting up business in India, please use the “Start Your Business” or click here.
What are assistance schemes of government for start ups?
The Government of India has introduced various schemes for providing financial, technological and marketing assistance for development and growth of young and dynamic entrepreneurs. In order to check out the same, please click here
What start up need?
In case of startup, though the business to be carried is supported with strong idea and diligent planning but they generally lack the necessary resources, which are required to carry a business and one of the basic requirements is that of funds. Though startup generally have the initial capital to run the business but not to expand and take it to higher level. Moreover, startup are basically a business idea and therefore there is always a huge potential of risk involved, which to some extent acts as hindrance in raising necessary funds for the business.
In order to provide the necessary support to startup to give a concrete shape to their ideas, there are organizations like angle investors , venture capitalist and funds, which provide the following type of capital to startups:
- Seed capital: This type of capital is introduced at very early state of start of business to provide the preliminary support to the business, in which no equity participation is generally asked. This type of capital is generally provided by individual or organization, who have the knowledge of the business in which the investment is made. Seed capital provides generally acts as a mentor to the business. Angels help entrepreneurs shape business models, create business plans and connect to resources but without stepping into a controlling or operating role.
Checkout the list of Angel Investors
- Venture Capital: Venture Capital is provided by venture capital funds. These funds invest in fast moving and high risk involving business. Venture capital goes through defined process before putting the necessary capital and in most cases, venture capital is in form of equity in the business. Venture capital goes through the fundamental and various dimensions of the business and they generally invest, when they feel that your business have high growth potential.
Check out the list of Venture Capital firm
Incubators for Start up:
Just like newly born babies are placed in incubators during their initial days of birth for providing the required support & environment, startup are placed under business Incubator to assist them to establish and stabilize themselves during their start up phase. Incubators generally provide shared premises, business advice, business services, access to investor, market and international networks, mentoring and a full-time, hands-on management team.
Business incubators helps in accelerating the successful development of entrepreneurial companies through an array of business support services, developed and architect by incubator management and offered both in the incubator and through its network of contacts. Incubators vary in the way they deliver their services, in their organizational structure, and in the types of clients they serve. Successful completion of a business incubation program increases the likelihood that a start-up company will stay in business for the long term.
Business incubators provide their resident companies with business support services and resources such as guidance, assistance with business planning and help obtaining financing. Incubators usually also offer companies rental space with flexible leases, shared basic office services and access to equipment all under one roof.
Check out the list of Incubators in India.
How we can help Start up?
We understand that as a startup, you have a business idea to carry on but may not have necessary support and knowledge to execute your business. After considering your needs, we have created customized service packages that can help you in executing your idea into realty. We also offer the facility, where after considering the business prospect, we provide all our services in consideration of minimum fees and equity shares in the business based on valuation of our services.
Our Service package consist of
- Startup Setup package
- Startup Setup and Support Package.
- Startup Finance Support Package
Startup Setup package:
It includes the following:
- Advising you the business structure (company, LLP, partnership) after analyzing your business needs
- Assisting you in establishing the business structure
- Assisting in procuring the approvals /licences , if nay required to start up the business
- Assisting in getting the preliminary tax and commercial registrations.
- Assisting in drafting necessary JV/Partnership Agreements
Startup Setup and Support Package:
It includes the following:
- All services covered under Startup Setup Package
- Assisting in Drafting of legal agreement, organizational policies etc
- Assisting in Trademark and Copyright Agreement and registrations
- Managing your accounting and pay roll requirement 5. Legal Compliance Management
- Maintenance of corporate secretarial records (periodic statutory filings, Board papers, maintenance of statutory registers, interacting with statutory auditors)
- Assisting in preparing organization for due-diligence by venture capitalist and other investors
- Assisting in drafting shareholders Agreement with venture capitalist and other investors
Startup Finance Support Package:
We can help startups in arranging the necessary funds required for their business through the following:
- Assisting in preparing the Project Report /Information Memorandum about the business
- Assisting in preparing organization for due-diligence by financial institutions ,venture capitalist and other investors
- Arranging in meeting with financial institutions, venture capitalist and other investors.
- Assisting in pitching the business plan before the financial institutions, venture capitalist and other investors.
- Assisting in entering into negotiations with financial institutions, venture capitalist and other investors.
- Assisting in drafting shareholders or other agreement with investors
Preliminary Business Set up Checklist
As a startup, you have to undertake following activities for establishing your business as a company:
Pre-Set up Activities:
- Prepare a business plan
- Hire a legal consultant to take care of the entire business set up process and to advise you on other issues. It is always better to hire a consultant instead of trying to execute things on your own, you will end up getting stucked.
- Ask your consultant to incorporate a private company and undertake the following process:
- Procure Directors Identification Numberfor Directors
- Procure Digital Signatures for any shareholder & Director
- Draft your Memorandum & Articles of Association of Company
- File Incorporation papers
Post Set up Activity:
- Open a Bank Account
- Get the necessary tax registrations. Obtaining PAN and TAN will be mandatory and other registration will depend upon the nature and size of your business.
- In case , you don’t intend to employ large number of employee initially, start your operations from your residence
- In case initial operations are large, take a suitable office space on rent by executing a registered lease deed.
- Apply for necessary power, telephone and internet connection for the office.
Administrative Finance Activity:
- Install any accounting software like Tally to carry out the necessary accounting entries.
- Prepare annual budgets and plans
- Periodically generate MIS as to various financial components like expenses, revenue etc , to have an idea as to the financial position of the business
Administrative HR Activity:
- Finalize standard employment contract terms in consultation with your consultant
- Prepare a employee manual (HR Guidelines) to explain standard benefits, code of conduct and related issues to current and future staff.
- Enter into contract with employee pursuant to appointment includes clauses relating to confidentiality of information
- Register with PF & ESI Authorities in case , they are applicable
- Carry out the necessary compliances under the Tax Laws and Companies Act.
- Deposit the yearly and advances tax and other dues under Income tax Act
- Carry out the necessary compliances under PF and ESI.
Do you need funding , contact us