Why is business registration in Lakhimpur is essential?
Before getting into business registration in Lakhimpur, first, tell me why you aspire to start your own business. Is it for fun? Obviously not, everyone like you starts a business to make more money, to spend effective time for their growth, to follow their passion and most importantly to acquire a unique identity. Let’s see how will you get your identity. Think that, if I asked you about “Apple”, what would you say? Without any doubt, you would start talking about “Apple phones”. How does this happen? That’s the power of business registration. Elaborately says that the full name of “Apple” is “Apple Computer Inc. the end name “Inc.” indicates that they have registered their business as a company and that the biting Apple logo indicates that they have registered their logo under intellectual property registration, this is also a business registration. However, business registration is necessary in order to obtain a distinct identity. To set up your business, four business registrations are necessary.
- Company Registration
- Intellectual Property Registration
- Mandatory Licenses,
We will look at business registration in detail, through this article.
WHAT IS BUSINESS REGISTRATION IN Lakhimpur?
Everyone has a dream about a career. In our childhood, we aspire to become a doctor or an engineer, but in our adolescence, we take professional courses according to marks and after completing our studies, we go to 9 am to 5 pm jobs, without knowing why we are doing that job. In this situation, only a few bravely quit their job and started to build their own empires. However, quitting your job and starting a business is not a small thing. But before starting a business, it is important to know about the legal process of setting up a business. The most important first step register a business in Lakhimpur. It includes four main components. They are,
- Company Registration
- Intellectual Property Registration
- Tax Registration
- Government Licenses
All the registration is essential and also these registrations possess some advantages. Let’s see them one by one.
WHAT IS COMPANY REGISTRATION?
- Sole Proprietorship Firm
- Partnership Firm
- Limited Liability Partnership
- Private Limited Company
- One Person Company
- Public Limited Company
SOLE PROPRIETORSHIP FIRM IN Lakhimpur:
A sole proprietorship firm is the basic form of an entity. Only a few steps are needed to incorporate the business and it is possessed by a single person. So, most young entrepreneurs prefer this, sole proprietorship firm. Here the proprietor and the entity are treated as one person. The PAN card of the proprietor is used as the company’s PAN card.
PARTNERSHIP FIRM IN Lakhimpur:
A partnership firm is a kind of firm which is incorporated by two or more individuals with mutual understanding. Drafting a partnership deed is mandatory to form the entity and the deed should contain the basic details of the partners and firm. It is registered and administered by the Registrar of Companies.
LIMITED LIABILITY PARTNERSHIP:
Limited Liability Partnership was introduced by the central government which gives the pleasure of limited liability. No minimum capital is required to incorporate the firm. The minimum eligibilities are minimum of two partners, two authorized partners, and an office location in India.
A private limited company is considered as a separate legal entity which offers credibility and believability to your firm among consumers and investors. By registering your business as a private limited, you can get bank loans easily. Minimum eligibilities are two shareholders, two directors, one lakh share capital, and an office location in India.
ONE PERSON COMPANY:
One Person Company is a kind of private limited company which is briefly known as OPC. It is a revived form of proprietorship and private limited implemented in 2013. It is incorporated by a single person and one nominee must. It has protection against liability and no limit for share capital.
PUBLIC LIMITED COMPANY:
A public limited company is generally suitable for large-scale industries. A public limited company listed its shares on the stock exchange. It requires a minimum paid capital of five lakhs, three directors and seven shareholders to incorporate. Legislation meeting is mandatory. The financial report and annual report of a public limited company are transparent to the public.
WHAT IS INTELLECTUAL PROPERTY REGISTRATION?
- Trademark Registration
- Copyright Registration
- Design Registration
The term trademark means the company name, brand name, logo, wordmark, phrases, tagline etc. Register a business in Lakhimpur as a trademark is not mandatory but registering it helps to protect the company’s brand name. It prevents duplication, repetitions, fraudulence, and confusion. Trademark registration is valid for ten years after that it needs to be renewed.
Copyrights are specific and legal rights that protect the original works of the author and creator. Copyrights were governed and regulated by the Ministry of Commerce. Any work such as literary, musical, artistic, or software can be copyrighted. It is valid for the lifetime of the author and 60years from the death of the author. It is a territorial right, so once you get the copyright certificate it is valid in 164 countries.
A design registration protects your product’s unique shape or unique design. only the manufacturer can obtain this compliance. This registration provides a distinctive identity and adds additional value to your products. This restricts the third party from using your peculiar design.
WHAT IS TAX REGISTRATION?
The government levied direct and indirect taxes on the citizen for various requirements such as lay roads, providing adequate education, paying salaries to government employees etc. Every individual and company have to pay tax. In India, a significant tax revolution taking place in the name of GST.
In India, GST was introduced in 2017 with the concept of the “One Nation One Tax”. GST is the abbreviation of Goods and Services Tax. It is an indirect tax that replaces multiple indirect taxes. It reduces tax evasion and creates a stable tax system. It is a fifteen-digit unique number. The entity which obtains income of more than forty lakhs must register for GST.
WHAT ARE GOVERNMENT LICENSES?
- FSSAI License
- IE Code
- Drug License
FSSAI is an abbreviation for Food Safety and Standard Authority of India. It is administered by the Ministry of Health and Family Welfare. This license ensures the quality and safety of food products. Every Food Business Operator (FBO) must obtain this license. There are three types of Fssai. They are Basic Licenses, State Licenses, and Central Licenses. Depending on your capacity of the business, you can obtain the license.
Importer and Exporter Code is an extended form of IE Code which provides the authority to the traders to import and export the products. It is administered and provided by the Director General of Foreign Trade (DGFT). IE Code is mandatory for all importers and exporters. IEC is a perpetual license that does not require renewal.
A drug license is usually obtained for the sale of medicine. The State drug license is regulated by State Drugs Standard Control Organization (SDSCO), the Central drug license is regulated by Central Drugs Standard Control Organization (CDSCO) and the Ayurvedic and Siddha drug license is regulated by the Department of Ayush under the Drugs and Cosmetics Act, 1940. Medicines can be sold in India only with this license. It is valid for 5 years after that you have to renew it.