5 Key Issues In Setting Up An Company
If you are starting a new business, you’ve probably thought about company registration. There are certain important decisions to be taken by entrepreneurs which have longsighted influence on the Company. There are various decisions which ought to be made, however top five we are going to discuss here.
1. Company Name
Your company name must be not the same as the name of some other already existing company or not violating of trademark laws. The website of Ministry of Corporate Affair (MCA) has an online search tool that allows you to check for similar business names.
2. Selection of the State where you want to registering a company
Since a stamp duty of registering a company varies from state to state, it is important decision to be made where you should register your company. But, you must register your company in the state where the business will be operated, as this will save your few expenses and complexities.
3. Business strategy
A Business strategy may not be a legal requirement, but rather it’s required should you ever decide to look for financing or move your business. Your Business strategy can be one page or a hundred pages, as long as it gives clarity on your business’ chance and your guide to achieve goals.
4. Name the Company Directors
A company is required to have a board of directors who are adequately in charge of running the enterprise. The selection of board of directors is an imperative decision and can affect your business from various perspectives. Minimum two director in private limited company and seven in case of public limited company is required.
5. Product of Company
Your product must be at least good, if not great, to begin with. It must be differentiated in some significant way from your rivals’ products. Product differentiation depends upon understanding your target market needs and after that creating and situating your product to address these issues more adequately than your products.