Legalities of starting a business
I always wondered what it takes to start a business in India. Turns out that it is quite simple - no big bureaucratic red tape which I always thought India was. There are 3 major types. Sole Proprietorship: This is what I opted for. Nothing to register with the government, lawyer or auditor. You are fully responsible for your business. Liability is solely yours. What it means is you incur a huge loss - you have to pay from your personal property. You wake up in the middle of night and decide - man let me start a business. There you go - your business is born. As simple as that. Want to open a bank account. No problem - tell them your company name and give address proof and PAN card number. Done. Till 2 Lakhs of income, you pay 20% tax. Beyond that it is 30%. Partnership: You need help from an auditor for this purpose. You and your partner(s) decide what is the percentage you own the company ( and hence the liabilities ) etc. Costs some 5000Rs I guess. I did not dig deep into this as t...