The spirit
of an enterprise lives in most of us and the desire
to make it big as an entrepreneur is a common goal
most of us possess. All one really requires to start
an enterprise is an idea and a vision to make it
click.
To a person
wanting to set up a new enterprise, one of the most
important hindrances is lack of awareness of the
various option available for setting up an enterprise
and the various options available. This aims to
give a brief insight about the various modes in
which an enterprise can be started and the various
funding options available.
TYPE
OF ORGANISATION
SOLE
PROPRIETORSHIP: One of the ways of
starting a one man-show is through a sole proprietorship
concern. Just think of a name for the concern
and start. The greatest advantage of such an
organization is that it requires minimal of
legal documentation. The risk in such a setup
is solely in the hands of the sole proprietor.
The liability of the proprietor to pay all creditors
and lenders is unlimited.
PARTNERSHIP
FIRM: Two or more people coming together
may start through a partnership firm. A deed
of Partnership in writing paper must be made.
This deed must clearly specify the name of the
partnership firm, the names of the partners,
the capital to be contributed by each partner,
the profit or loss sharing ratio between partners,
the duties, rights, powers and obligations of
each partner and other relevant details.The
partnership deed must be made on paper which
is duly stamped as per the laws prevalent at
the place of signing . It must be signed by
all partners and witnessed by independent persons.
The maximum number of partners which are permissible
in firm is 20.A partnership firm must be registered
with the Registrar of Firms. This entitles the
partnership firm to contract in its own name.
The advantages of this form of set up is that
two or more people can come together and start
a new business. The disadvantages of this set
up is more or less the same as that a sole proprietorship
concern.
COMPANY:
The legal status of a company is different form
that of its members. The risk which any person
takes by investing personal money in a company
is restricted to the amount of his investment.
The creditors and lenders of company cannot
force the member to pay debts due to them by
the company out of the member’s personal
funds. A company may either be a private limited
company or it may be formed as a public limited
company. The members of the company appoint
directors who are responsible for the management
of the company. The Directors are collectively
known as the Board of Directors. A private limited
company can be formed with a minimum of 2 members
and a public company may be formed with a minimum
of 7 members. A private limited company can
have a maximum of 50 members excluding employee-members
whereas there is no maximum limit on the number
of members of a public company.
A memorandum of association and articles of
association have to be filed with the Registrar
of Companies in order to incorporate a company.
The memorandum of association is the charter
of the company and specifies the name of the
company., the business and activities it can
carry, its address, the capital of the company
and details of the persons who have formed the
company. The articles of association of the
company specify rules and regulations of the
company, the rights, duties and liabilities
of the members and directors.
The major advantage of a company set up is the
liability of the members is restricted to the
extent of members ‘ investment in the
company, his personal property is not put at
risk. The company form of organization is most
suitable for modern times because it provides
a route whereby ownership (members) can be separated
from management (directors). Though members
can become directors it is not always necessary.
Even outsiders can be appointed as directors.
The funding may be provided by the investor-members
and the management may be in the hands of the
promoter-members.
Haryana
ranks first among all states, as per CMIE Capex database, with investment under implementation of Rs.78,500 per capita (Rs. 1,86,045 Crores on June,2007).
full story…
Haryana
nod for two SEZs - one in Gurgaon and the other in Jahjjar by Reliance.
full story...
Gurgaon
Gurgaon may beat Bangalore Karnataka, the epitome of knowledge-based India, is damaging itself through public squabbles. Haryana is an up-and-comer for the knowledge-based mantle, and the state's leadership has identified its objectives and strategy with clarity.
full story…
