Resources 5 Reasons why company registration is NOT a good idea!

Is it mandatory to register a company before starting a business in India? The answer is no!

Registering a company is not the only way to start a business in India. There are many other ways to start your business in India, but people are not familiar with.

PRIVATE LIMITED COMPANY REGISTRATION IN INDIA

registration

The simplest way to start your own business is to acquire any tax license, like service tax registration. Here are four steps that need to be followed to start your own business in India:

If you are a services provider (for example, a tech startup, etc.), service tax registration is necessary (maximum cost will be Rs 3,000 including registration and it will take four to six working days).
Open a current account with any bank of your choice with the license obtained. Now, you can run your business easily.
For service tax, you just need to file the two half-yearly returns, which can cost you Rs 2,000 max.
Further, once your business is established, you can easily convert it into a private limited company, LLP or any other form of your choice.
Now, here are five reasons why you should not register your company to start your business in India.

Costly affair: A startup has limited funds with many ideas. Hence, in the beginning, you must spend your money on the value additions rather than incurring on company registration. Company registration is a costly affair, further the yearly annual compliances, accounting, stringent penalties only makes it worse.
Let us compare the cost incurred to run a private limited company and the service way.

Particulars	Private Limited Company	Service tax way	Difference
Incorporation cost	15,000	3,000	12,000
Annual maintenance cost	15,000*	2,000	13,000
Average fees for changes like director change, etc.	5,000	-	5,000
Penalties and interest	6,000	1,000	5,000
Grand total	41,000	6,000	35,000

We have accepted the least conceivable expense for the organization. The figures may increment contingent on the income numbers 

Aside from the cost distinction above, there is 25 percent of individuals who additionally strike off the organization as they are not ready to maintain their business openly. 

Likewise, in the year 2015-16, in excess of two lakh, individuals have picked the administration charge approach to begin their business in India. 

Complexities of Companies Act: Once you are enlisted as a private restricted organization, at that point you will undoubtedly pursue the stringent and restricting arrangements of the Companies Act. 

Here are not many confinements that you should agree on bombing which may wind up you in a tough situation: 

The Director or investor can't take cash straightforwardly from the organization. Any sum taken from the organization will pull in the punitive activity. 

Chief isn't permitted to take advance from the organization. 

You can remove cash from the organization, just on the off chance that you are procuring satisfactory benefits. 

You can't take credit or any sum from any outsider. 

You can take payments from the organization, however that too in consonance with the Companies Act, 2013. 

These are the only a couple of confinements. There are various exchanges that are under the focal point of the law. Be that as it may, when you begin your business just with duty enlistment, there is no law limitation. You are allowed to do anything! 

The consistency trouble: To jump over the business, you should be free in all faculties with all the attention on the prime goal. Be that as it may, this isn't accurate when you pick the organization as your type of business. 

The consistency load on business visionaries is high to the point that they will in general waste a ton of time into lawful inconveniences. Further, the substantial punishments on ignoring of any arrangement just make things most exceedingly awful. 

The conclusion cost: In India, it is anything but difficult to begin however hard to exist. Shutting a private constrained organization isn't simple. On the off chance that you have carried on the business for quite a Tandoor Manufacturer while and now you need to close it, at that point you may need to complete a ton of diligent work. 

Some of the time, the government introduces a few plans under which an organization gets broke down effectively. In any case, those plans are not changeless and after that, you need to pursue the most exceedingly terrible and the longest system to strike off your organization. 

The MVP difficulty: Before coming to any resolution or overwhelming burning through, one should check the base suitability of the item. Consequently, in the event that you had joined an organization and procured every one of the licenses and, at that point, you are checking your MVP, at that point you may need to reconsider before you are intending to do these things. 

There is no point dawdling, cash, and vitality on something which isn't deserving of it. Henceforth, one should begin a business as an owner at the outset and afterward bit by bit update it to a full-fledged company. Conclusion

ONE PERSON COMPANY REGISTRATIONS

We have disclosed to you the upsides of beginning as an owner. Resemble a lean startup and bit by bit advance your business. We prescribe enlisting for administration charge first and after that, you manufactured your business and bit by bit update yourself to a completely fledged organization.