New Business Setup in India
While starting business in India, one of the major decision comes as to select the form of entity the business be running in. This question also become very important in view of compliance level in different entities.
Factors to consider while selecting Legal Structure of Business
- Scale of operation: Whether business will be limited to cities, state or be at All India level or globally.
- Tax implication: There are different rates of tax for different entity.
- Source of funding: Whether capital infusion will be from self or taken form market. Market prefer formal structure.
- Nature and Complexities: Different business has their own set of challenges.
- Regulators: Like Business of lending is regulated by RBI. You have to fulfill their norms including legal structure of business.