Want to start a new business- Too many questions

Hello everyone!
Some old members maybe surprised as it has been a long time for posting. I was caught up in education and career issues. Also the ETI forums was under renovation.

Coming to the point,
I live in India, Maharastra (In a small town/village) . And Just completed my MBA.
I am doing hardware/Paints business with my dad. However, I feel the such business is not made for me and I don't feel very comfortable in that field. This whole year was full of tension and pressure because its a very big change in my life. Finally i have decided YES and I want to start my very own, new business!

My dream is to start a Solar/Electronics/Automotive business. As It is not possible to do such business in my village, i will have to move somewhere to big city for the same. Questions are many and resources are few. I am putting them forth you and hope to get the best of help and support from you all!

1)What is the process of registering a new company and what are expenses? Also, as i move to other city, I will have old address on my Documents proof and creating new documents is not a joke.

2)I was looking forward to import solar devices (Eg Lamps, Small torches) from China and sell them here. What are the requirements for the same?

3) I am looking forward to conduct the business mainly online. What are the legalities of Online business in India? how to work about the accounts and taxes/formalities of online business??

Please revv up the discussion folks!

It was actually a surprise to see you after so long. Infact I miss old pals here.

It is nice to know that after all those confusion you have finally decided to start your own business and even decided to what kind of business, I do see a great potential in Solar Energy Harnessing as price of electricity / power is rising continuously and also there still areas where electricity supply is not adequate. What I need to suggest is that there are many people who are doing same but if you want to get better success then try to do same with some of your own innovation and creativity. You may many example out there when a new player came in, did same thing what others were doing but with his new style and creativity and became market leader.

You may create a PVT. Ltd company, now you can even create with single person, however, first you need to have sales tax registration as you are going to sell goods. The process is not very hard, you have to go local sales tax office and procure forms as well instructions. I think first you should start business under proprietorship and you business grows, you may form Pvt. ltd firm and so on.

I was looking details about importers, if you going to import anything then you have to apply for VAT also otherwise VAT registration is required only when you have annual turnover of 40 lakhs or more.

Since I am from field of online business, I know it is not very complicted only initially you have to create good infrastructure, a payment processor and shopping site and you are done. Rest is normal as you do for any offline business ie. account management / ledger etc.

Do you know, even firm like TATA is dealing in solar devices, however if you can provide devices those are cost effective and actually useful in real life then I don't think there is any looking back.

Let me know what do you think about it, hope now I will see you regularly on eTI.

Quote:

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Originally Posted by Ricky

It was actually a surprise to see you after so long. Infact I miss old pals here.

It is nice to know that after all those confusion you have finally decided to start your own business and even decided to what kind of business, I do see a great potential in Solar Energy Harnessing as price of electricity / power is rising continuously and also there still areas where electricity supply is not adequate. What I need to suggest is that there are many people who are doing same but if you want to get better success then try to do same with some of your own innovation and creativity. You may many example out there when a new player came in, did same thing what others were doing but with his new style and creativity and became market leader.

You may create a PVT. Ltd company, now you can even create with single person, however, first you need to have sales tax registration as you are going to sell goods. The process is not very hard, you have to go local sales tax office and procure forms as well instructions. I think first you should start business under proprietorship and you business grows, you may form Pvt. ltd firm and so on.

I was looking details about importers, if you going to import anything then you have to apply for VAT also otherwise VAT registration is required only when you have annual turnover of 40 lakhs or more.

Since I am from field of online business, I know it is not very complicted only initially you have to create good infrastructure, a payment processor and shopping site and you are done. Rest is normal as you do for any offline business ie. account management / ledger etc.

Do you know, even firm like TATA is dealing in solar devices, however if you can provide devices those are cost effective and actually useful in real life then I don't think there is any looking back.

Let me know what do you think about it, hope now I will see you regularly on eTI.

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Hello Ricky,
I is a GREAT relief to see you back. I am proud how you are dedicated and giving valuable guidance to everyone on the forums. Yes It has been long, However I will try to frequent the forums as much as possible, because I am going for online business.

Let us have the discussion point by point-
1) Yes the confusion Was a lot, Infact it still is. I put a stone on my heart and am full fledged going for my decision. Because I feel that sucess does not come free. And If i an working hard, why not put efforts in the subject that I LOVE rather than in the old type business. Also, solar is more like hobby so I feel never tired working around devices etc. Its my passion!

2) The product i am looking after, is very unique and universal. It is supposed to have multiple Settings/Voltages so you can use the same product for your factory, House, office or even car! Since i do not have provisions for Copyright/Patent I would not disclose much. But for making such prototype,I will need HUGE amounts of money, and I want to start small by Importing small solar gadgets (Eg. Lamps, Chargers) from China and selling them here. This is where i will need most help. Kindly guide me about import procedures/Duty/Taxes etc.

3)Yes I was thinking to go for private limited company, It will be better for my future and there will be no hassle to convert Proprietorship into LTD company after few years. I will also apply for VAT as i want to work 100 Legally and I may also export or supply all over india so I do not want any legal disputes to make me busy. Problem here is, On my pan card etc i have my village address. Suppose I am to move to Ahmedabad, Gujrat (better prospect for me) Will i be allowed to setup my company there? What documents will be needed and will my old address document work?

4)Setting up a website and marketing teams seems to be a piece of cake compared to these legal procedures. I have also planned out online marketing campaign and Payment methods that includes COD (Cash on delivery). If you are in the same field, i would be blessed if we can talk on phone or Skype etc. I am sure i have a lot to learn from you.

You i will try better frequent here and will also help fellow members once i learn the process of starting a new business!
Thanks a ton!

Very nice to know that you are already planning as I wanted to explain you ie. doing ordinary things with extra-ordinary ways. So, goodluck for your devices, however, you may also look for investment, since you have done MBA, I feel you have better knowledge and experience about presenting things to people, may you consider finding someone and explain him your procedure and then start working on device.. otherwise your initial plan is also good ie. starting small and when experienced, go big.

You should start with Proprietorship and then go for Pvt. ltd as you go big, though there is no harm in starting as Pvt. Ltd, only thing is that there are few more documentations you may need.

Regarding imports, I guess I know a person who is in import business from China, I will try to get information from him for you.

For online presence, you may come to me anytime regarding kind of information and I am sure I can guide you almost in all area in that field.

Quote:

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Originally Posted by Ricky

Very nice to know that you are already planning as I wanted to explain you ie. doing ordinary things with extra-ordinary ways. So, goodluck for your devices, however, you may also look for investment, since you have done MBA, I feel you have better knowledge and experience about presenting things to people, may you consider finding someone and explain him your procedure and then start working on device.. otherwise your initial plan is also good ie. starting small and when experienced, go big.

You should start with Proprietorship and then go for Pvt. ltd as you go big, though there is no harm in starting as Pvt. Ltd, only thing is that there are few more documentations you may need.

Regarding imports, I guess I know a person who is in import business from China, I will try to get information from him for you.

For online presence, you may come to me anytime regarding kind of information and I am sure I can guide you almost in all area in that field.

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Hello there,
I met with a few CA and got information about incorporating a company. Its not as much I had thought. Max 25k ALL inclusive. I will need a VAT number too. there will be about 20~25K CA chargers per year. Also, it is not much difficult than a Proprietorship ,infact a PVT LTD is more helpful in case i want branches, for IEC code etc.

What business you are in? It would be a great pleasure if we could meet on Skype or phone?
Thanks!

Ricky? I'm waiting for ya!

Please reply.

It would be a great pleasure if we could meet on Skype or phone?

I was just not able to log into eTI from long. Hopefully tonight I will come here with peace and we can detailed discussion.

Hello Ricky,
Did you manage to get information about import?

The guy I was referring was not very helpful in giving out information, though he is importing good directly from China. It appears he was hesitant to share his trade secrets. However, yesterday I get know that one of my friend is now dealing in some import-export stuff, I will inquire him for you.