Starting a small business: Here are 5 easy steps to start your own firm
Are you daydreaming of starting a small business?
We help you with the right information. Follow these 5 steps, and you have your sole proprietorship firm running
1. DECIDE ABOUT THE NATURE OF THE FIRM WHEN STARTING A SMALL BUSINESS:
Before starting a small business you need to decide whether you want to start a sole proprietorship firm, partnership firm, or a private limited company. The three have their own advantages and disadvantages. It is ideal to start a sole proprietorship firm if you are single handedly starting with your small investment and no one else participating. In this article, we are talking only about starting a small business by way of registering it as a sole proprietorship firm.
2. FIND A SUITABLE TRADE NAME:
For a sole proprietorship firm, it is better to find a suitable name for your business and an optional logo. Find a unique name that can be identified with the nature of your business.
3. PROTECT YOUR TRADE NAME:
If you want no one else to exploit your trade name and if you are planning to stay long term in the business, apply for Trademarks under the word marks category. Getting a trademark is a long process and you have to wait until the formalities are over. Once you apply, your trade name is safe and are not prone to exploitation.
4. OPEN A BANK ACCOUNT:
Simultaneously apply for a Current Account for your business. For this, you may need to show a trade license from the Municipality/Panchayat or GST registration. If you don’t have a licensed office, you can apply for GST with your residential address. Produce the GST registration when you apply for the Bank account.
4. GST REGISTRATION & FILING RETURNS:
Once the bank account is open with your business name, you can start transactions and file returns in the GST portal. If you don’t have any turnover, just file a zero return. File both the monthly return via GSTR 3B and quarterly return by way of GSTR 1. Ensure that you file your returns on time or else you will have to pay penalty.
5. GROW YOUR BUSINESS AND TURNOVER:
Starting a small business is somewhat easy but sustaining it is where the hard part lies. Develop your idea and enlarge your customer base, start a website and an office, market your services/products offered and increase your turnover. Once the venture starts growing and crosses INR two crores in turnover, register your firm as a private limited company.
If you need personalised help to set up your firm, feel free to contact us at email@example.com