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EDE Practical 10

Entrepreneurship development practical

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361 views5 pages

EDE Practical 10

Entrepreneurship development practical

Uploaded by

deepakgaund
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Practical 10

Q Compile the information from the financial agencies that will help to set
your business enterprise.

Financial Agencies Information


1. Why is necessary to have a Business plan?

A business plan including key business milestones, financials and


timelines. It acts as a blueprint of your business. Some of the essential
components that a business plan contains are as follows:

 Company description
 Services and products available
 Market analysis
 Implementation process and business strategy
 Team management

2. What kinds of businesses are registered ?

In India, there are seven different forms of company registrations.

 Private Limited Company.


A private limited business has a membership cap of 200 people. A
private limited corporation must have at least two members to be
incorporated. It is appropriate for companies that choose to register as
private corporations because the members cannot transfer their shares.

 Public Limited Company.


A company that allows the general public to own company shares is
referred to as a public limited corporation. A public limited company
may have as many shareholders as it chooses, but it must have a
minimum of seven members to become incorporated. The number of
directors for the corporation must be at least two and never exceed
fifteen.

 Partnerships Company.
A partnership business, by definition, consists of two or more people
who combine their resources to form a business and agree to share
risks, profits and losses. Common partnership business examples
include law firms, physician groups, real estate investment firms and
accounting groups

 Limited Liability Partnership.


LLP or Limited liability partnership is a type of business that allows
the partners to administer their internal management on the basis of a
mutually arrived agreement just as in the case of a partnership firm.
But in an LLP no partner is liable on account of the independent or
unauthorized actions of other partners, thus protecting the personal
assets of individual partners.

 One Person Company.


The One Person Company concept was introduced by the Act (OPC).
According to the Act, an OPC is a business with just one member, and
the company’s director may also be a member. Although there should
only be one member of the OPC, there can be up to fifteen directors.

 Sole Proprietorship.
A sole proprietorship, also known as a sole tradership, individual
entrepreneurship or proprietorship, is a type of enterprise owned and
run by one person and in which there is no legal distinction between
the owner and the business entity.
 Section 8 Company.
It is referred to as a Section 8 Company since it is a company
registered under Section 8 of the Companies Act. It is registered as a
non-profit organization and for charity purposes. Due to its
registration as a Section 8 Company, this company has a special status
and specific exemptions

3. How to Register a Company in India?

Registering a company in India is now a simple 4-step process-

Step 1: Digital Signature Certificate

As the registration process of the company is completely online, Digital


signatures are required to file the forms on the MCA portal. DSC is
mandatory for all the proposed directors and the subscribers of the
Memorandum of Association (MoA) and Articles of Association (AoA).

DSC can be obtained from government recognised certifying authorities.

Step 2: Director Identification Number


The Director Identification Number (DIN) is an identification number for
a director and it has to be obtained by anyone who wants to be a director in
a company. The DIN of all the proposed directors of the company along
with the name and the address proof are to be provided in the company
registration form. DIN can be obtained while filing the SPICe+ form, i.e.
company registration form.

SPICe+ is a web-based company registration form, through which DIN


can be obtained for a maximum of three directors.

Step 3: Registration on MCA Portal

To apply for company registration, the SPICe+ form is to be filled out and
submitted on the MCA Portal. To fill out the SPICe+ form and submit
documents, the director of the company has to register on the MCA portal.
After registration, the director can log in and will obtain access to the
MCA portal services which include filing e-forms and viewing public
documents.

Step 4: Certificate Of Incorporation

Once, the registration application is filled and submitted along with the
required documents, the Registrar of Companies will examine the
application. Upon verification of the application, he will issue the
Certificate of Incorporation of the Company.

4.How to acquire Funding/Loan for your Business?


For acquiring business loan/funding here is a list of finest from financial
institutions/banks:-

 SBI (Small Business Loans)


 HDFC Bank (Company's Growth Loans)
 ICICI Bank (Commercial loan)
 Citibank (Commercial Loans)
 IDFC (Commercial Loans)
 Kotak Bank (Commercial Loan)

Conclusion
We learned information from financial institutions to setup Business like
need of Business Plan, what kind of businesses are registered, step-by-step
procedure to register our business and about different financial
institutions/banks for which could be used to acquire funding/loan for
setting up our business.

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