THE LOOT success story Mr.

Jay Gupta revealed a fine business sense from his early years in Dr. Grahams School (Kalimpong- Darjeeling), which showed his adamant goal to start his own company. As early as 1996 post completion of his graduation from S.I.E.S. College in Mumbai, he started his pursuit to set up a thriving business. Jay Gupta was sure that his success was fated through venturing into the garment and footwear retail business. He pursued his dreams by opening some franchisees stores for brands like Color Plus, Adidas, Nike, Weekender etc. Soon the displeasure set in for Jay Gupta, due to an inability of providing the customer with a complete satisfactory shopping experience. He was faced with many complaints for lack of choice at affordable prices. Pondering over the great business opportunity, he developed the idea of giving the best brands to the customer at economical rates all under one roof. Today, Jay Gupta is considered as the youngest first generation retail entrepreneur and the foremost pioneer of the fastest growing multi-branded discount chain. Mr. Jay Gupta started his business in 2004, as a Value Retail format for sale of top quality branded readymade garments, shoes and accessories at discounted prices to the consumers, throughout the year. The format is based on demand of branded goods at affordable prices and has to address the consumer needs and wants. Jays idea was of giving the best brands to the customer at the best prices, all under one roof. Mr. Jays immediate goal for THE LOOT was to multiply into 100 stores by 200809 which has been achieved and thereafter multiply these to reach the tier 1, 2 and 3 cities of the country. He is confident that The Loots unique but generic business model can succeed in any metro or even in tier II & tier III town within the country. Although he is aware of the competitive Indian retail market, Jay Guptas trick is of existing with his competition by adding USPs into his business plan. This has made The LOOT a distinct player in the field of value retailing in multi-branded stores. After five years of surviving the highs and the lows of the sector, the Loot has created a bench mark for itself. Recognizing this very effort, the company has bagged 5 prestigious industry awards at the beginning of the year: "Star Entrepreneur Award" at the International India Innovation Summit that recognized the Loot for its extraordinary entrepreneurship effort. Critics Choice Award for "Pioneering efforts in retail concept creation" at the 9th Edition of the India Fashion Forum 2009 Young Retail Achiever Of The Year Award At The Reid & Taylor Awards For Retail Excellence "Star Youth achiever Award" at The Global Youth Marketing Forum for this good work and great contribution to the retail industry. The TATA NEN Hottest Start up award, making the Loot the most sought

after multi brand store. To top it all, Mr. Jay recently won the TiE Entrepreneurial Excellence Award 2009 at TiEcon Delhi 2009. As per The Franchising World (2008), The Loot is amongst the Top 50 business opportunities in India.

The Loot was selected one amongst the 12 Small ideas big changes series in The Hindustan Times in Mumbai. Mr. Gupta has been the first generation retail entrepreneur and has been an active Charter member with TiE. He has also been quite active in mentoring students of various MBA colleges across the country especially on entrepreneurship. He has recently been approached by the Asia Retail Congress 2009 to be a part of their advisory board. The organization/company you created The LOOT is a multi-brand discount store, offering customers a wide range of products in apparel, footwear & accessories for men, women and kids with discounts ranging between 25% -60% throughout the year. The store retails brands like Reebok, Puma, Levis, Red Tape, Lee, Wrangler, Spykar, Allen Solly, Van Heusen, Eccentrics, Ruff, Gini & Jony, Lilliput, Killer, Bus Stop, Indian Terrain and more 100 brands. The LOOT started in the year 2004 as a Value Retail format. Post the launch and the stupendous success of the first store in the year 2004, The LOOT has set up 125 outlets, which are currently operational. The Loots strength as a retailer lies in proper procurement & an excellent supply chain management. This helps in getting better pricing from the manufacturer and thereafter passing the benefit on to the consumer. The LOOT currently offers the right mix of men, women and kids; formal, semi-formal, casuals, sports category of garments, footwear, accessories & home linen. The LOOT currently operates 125 stores in cities like Ahmedabad, Ahmednagar, Aizwal, Akola Ambala, Amritsar, Ambikapur, Aurangabad, Bangalore, Begusarai, Bhagalpur, Bhopal,Bhubnehwar, Bijapur, Chaibasa, Coimbatore, Cuutack, Delhi, Devangere, Dhanbad, Dharwad, Dimapur, Gandhidham, Gnagtok, Ghaziabad, Godhra, Gulbarga, Imphal, Itanagar, Jabalpur, Jaipur, Jalandhar, Jalgaon, Jamnagar, Jamshedpur, Jodhpur, Kalyan, Kanpur, Kolkata, Korba, Ludhiana, Mohali, Mumbai, Mysore, Nanded, Nashik, Navi Mumbai, Navsari, Osmanabad, Panjim, Patiala, Patna, Pune, Raipur, Ranchi, Ropar, Silvassa, Solapur, Sri Ganganagar, Surat, Thane, Tirupur, Udaipur, Valsad, Vapi & Varansai A number of new stores in cities such as Faridabad, Guwahati, Hubli, Indore, , Kutch, Mumbai (many more stores opening) Nagpur, Pune (M.G. Road) & Sikar are on the anvil. As on date, The Loot has around 600 employee strong company with each department handled by a qualified department head.

For The Loot, our brand ambassador is not merely a visibility device, but is also a personification of its positioning, value systems and brand appeal. In keeping with its positioning of offering products at-a-steal, The Loot has chosen the imagery represented by Gulshan Grover and his Bad Man Image. A self-confessed bad-man sharing tricks of the trade for the benefit of the consumer. It takes a huge courage to sign a villainous character as a Brand Ambassador. The Loot has succeeded to leverage the negative shades of Gulshan Grover to lure the consumers by influencing their desire for great steals on big brands. To propel the growth of the company and to move to the next level, The LOOT has invested skillfully in IT. The company focus is also on personnel training and great emphasis is being laid on preparing the back end to take growth to about 200 stores by the year 2009-10. A modern fully equipped and technologically upgraded warehouse has been set up at Bhiwandi, which can accommodate about 8-10 lacs pieces of merchandise to meet the growing demand of the expansion. Your experiences in the industry 12 years in Retail Industry 5 years with The Loot. Mr Gupta has experienced working with the most desired brands in the country. He started off with his career in the retail industry with Multi-Branded Outlets, Exclusive Store of Brands and then Master Franchisees for brands like Color Plus, Adidas, Nike, Weekender etc. He stumbled upon an article in a magazine which selected Chain of Hotels, Banks and Retail as evergreen businesses. So he opted for Retail, initially to get into the garment and footwear business by opening some franchisees Stores. He realized that customers wanted variety and opened some multi-branded full price store outlets. We received a good no. of footfalls but the conversions were very low. The idea of The Loot stemmed from looking at customers who aspired for branded goods but could not afford them. He then pondered and came up with the idea of opening Factory outlets, the conversions drastically increased but the customer was still unhappy- with the poor after sales service, no exchange, shabby shopping conditions etc. His main aim was customer satisfaction and to provide a delightful shopping experience to them and with this thought The Loot was born! In 2004, The First Loot was launched at Marine Lines. The format is based on demand of branded goods at affordable prices and has tried to address the consumer needs and wants. He conceptualized & set up the first THE LOOT store in mid 2004 - A multi brand discount store. The concept was well accepted & supported by both the customers & business associates. Soon there was an increase in the numbers and the chain now has 125 stores (3, 00,000 sq. ft. retail carpet area) till date throughout the country. The company plans to launch 80 additional stores by March 2010.

Product Variants
Other Products

Our business banking loan segment offers you a host of innovative products and flexible services which are customised to meet your evolving financial needs through our wide branch network.

a) Secured Loans FEATURES Facilities offered : Cash Credit / Overdraft for meeting working capital finance requirement. Export Credit to provide Pre-Shipment & Post Shipment finance . Letter of Credit to facilitate trade. Bank Guarantees for meeting performance and financial obligations. Term Loan for purchase of commercial assets & business expansion needs. Lending Exposure: Upto Rs 50.0 million for working capital and capital expenditure needs Acceptable collaterals: Residential/Commercial/Industrial property,liquid securities Eligible entities: Sole Proprietorship Firm,Partnership Firms,Private limited Companies, Public limited Companies Pre-requisites : Minimum one year business operation & audited financial. *and such other pre-requisites as may be desired by the bank BENEFITS Low collateral requirementLending available upto 3 times of the value of the collateral Fast processing De-centralised operations for fast processing and quick availability of loans Convenient Documentation Convenient documentation process to offer ease and flexibility Attractive Pricing Low interest rates and commission charges Priority sector clients Attractive pricing offered for customers under priority sector lending. Fast and Easy renewals Hassle free renewals with less documentation Dedicated and exclusive relationship managers Dedicated relationship managers to provide complete financial solutions

Pharmaceuticals
Pharmaceuticals Whether it's the challenges of Schedule M or awareness of best practices, nobody understands the fundamental issues of the pharma business better than you. Except, perhaps, ICICI Bank. We have the expertise needed to help you keep pace with the developments in this fast-evolving industry. Our team of pharma specialists are driven to add value to your business through focus, innovation and sharing.

Whether you are involved with formulations or APIs for local or global markets, what you get is a potent mixture of industry understanding backed by working capital facilities, forex services and special lending programs customised for you. Working Capital Cash Credit

Working capital as cash-credit facility (with charge on current assets) Facility for a period of 12 months Floating interest rate. Interest levied only on amount utilized. Flexibility of paying a minimum amount every month.

Working Capital Demand Loan This can be offered from 50% to 80% of the overall Working Capital limit with a special pricing and 100% utilisation over the term of the Demand loan. This is a unique product and offers considerable cost saving. Information Technology The Information Technology industry is expected to grow to double its current size by the year 2012. India's IT industry is expected to grow at an annual average rate of 18% in the next five years. According to the NASSCOM- McKinsey report on the IT industry of India, the industry is also expected to cross the 100 billion US Dollar mark by 2011. One of the major areas of growth for the IT industry of India is by tapping the potential in the domestic market. If you are in the business of IT services / IT enabled services / Hardware distribution / our experts will assist you with working capital facilities and all kinds of forex products and advisory services . Working Capital Demand Loan in Foreign Currency This is offered to the companies having substantial foreign currency inflows at LIBOR plus rates, based on the availability. Term Loan To keep pace with emerging technologies and capacity expansion needs, we offer Term Loans to IT companies on the growth path. Term Loans are structured with flexible options of repayment, based on the requirements and needs of the project.

External Commercial Borrowings are offered as a part of Term Loans , it enables you to avail cost effective foreign currency loans for capital expenditure, subject to RBI guidelines. Offshore Banking Products for SEZ based units If you are located in Special Economic Zone (SEZ), you can benefit from our offshore banking products. Avail working capital and long term facilities at internationally competitive prices. Construction The Rs.3,00,000 crore construction sector is scaling new heights. Infrastructure, commercial, retail and residential space is projected to command an outlay of Rs.18,00,000 crores in the next 10 years. ICICI Bank's in-house construction specialists will ensure that your business is able to take full advantage of these opportunities. Starting from the bidding process, through implementation of the project up to the defect liability period, our specialists will guide you with customised solutions to tackle all challenges. Working Capital Cash Credit

Working capital as cash-credit facility (with charge on current assets) and Working Capital Demand Loan Facility for a period of 12 months Floating interest rate. Interest levied only on amount utilized.

Bank Guarantee ICICI Bank's Bank Guarantees (BG) are available to you against minimal requirements and in the shortest possible time. Bank Guarantees (BG) are also available in foreign currency for approved purposes as defined under FEMA. The ICICI Bank Edge

Maximum tenor of guarantee 36 months (and 60 months for NHAI/ PMGSY projects) Competitively priced and comfortable margins

Vendor / Dealer Finance

Other Products ICICI Bank's Vendor / Dealer Finance solves your cash flow needs and ensures smooth running and development of your business. You get funds conveniently, on time and at a reasonable cost. ICICI Bank offers Bill Discounting services to vendors of large Indian corporates, including priority sector companies. Once the company accepts the bills drawn by you, they may be discounted by us. Discounting rate is linked to the tenor based IBR. Limit is outside the

banking arrangement of the Corporate, and recourse is to you. In case the corporate is not willing to accept a bill of exchange, you can also opt for our Invoice Discounting facility.

Vendor Bill Discounting Vendor Bill Discounting is the solution for your working capital requirements. If you are a vendor with a turnover of Rs. 2 crore, ICICI Bank's Vendor Bill Discounting can solve your business cash flow needs. This helps you meet your working capital needs, and allows you to access funds at competitive interest rates. The ICICI Bank Edge

Minimum paperwork Competitive rates of interest Quick transaction delivery

ICICI Bank's Dealer Financing ICICI Bank's Dealer Financing schemes are available to selected dealers of large corporates. You can avail short-term unsecured finance to procure goods from corporates. These may be on a non-recourse basis or in some cases, corporate recourse by way of First Loss Deficiency Guarantee. The corporate provides non-financial comforts like Stop Supply Letter, Assistance in Recovery & Resale. All payments due to you must be routed through our accounts. Dealer financing may be in the form of Bill Discounting or an Overdraft facility. Term facility is available for purchase of assets. Annexure - Interest rate, processing fees & other charges pdf

Starting Business in India Simplified stepby-step process

by Arun Prabhudesai on July 1, 2009 Now this is one question I have come across very frequently from our trak.in visitors, especially NRIs and foreigners who want to come to India to start their own Business. So I thought it would be a great time to put across detailed procedure on how to Start Business in India, along with the duration it will take to start your own business in India, the costs involved, the paperwork involved and procedures for starting a company in India. Please bear in my mind that these are standard procedures and are applicable in most cities in India, however, some in some cities there are some additional (or lack of) processes that you will have to find out.

The steps given below are for incorporating a Business in the city of Mumbai.

Steps involved in starting business in India

Registration Requirements:
No: Procedure Time to complete: Cost to complete:

Obtain director identification number (DIN) online from the 1 day Ministry of Corporate Affairs portal (National) Obtain digital signature certificate online from private agency authorized by the 3 days Ministry of Corporate Affairs (National) Reserve the company name online with the Registrar of 2 days Companies (ROC) (National)

INR 100

INR 1,500

INR 500 INR 1,300 (INR 200 for MOA + INR 1,000 for AOA for every INR 500,000 of share capital or part thereof + INR 100 for stamp paper for declaration Form 1) INR 14,133 (see comments) INR 350 (cost depends on the number of seals required and the time period for delivery)

Stamp the company documents at the State Treasury (State) or 1 day authorized bank (Private)

Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (National) Make a seal (Private)

5 days

1 day

7*

8*

Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. 7 days (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd., as outsourced by the Income Tax Department (National) Obtain a Tax Account Number 7 days (TAN) for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax

INR 67 (INR 60 application fee + 12.36% service tax + INR 5 for application form, if not downloaded)

INR 57 (INR 50 application fee + 12.36% service tax)

9*

10*

11*

12*

13*

Department Register with the Office of Inspector, Shops, and Establishment Act (State/Municipal) Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) Register for Profession Tax at the Profession Tax Office (State) Register with Employees Provident Fund Organization (National) Register for medical insurance at the regional office of the Employees State Insurance Corporation (National)

2 days

12 days

INR 6,500 (INR 2000 + 3 times registration fee for trade refuse charges) INR 5,100 (registration fee INR 5000 + stamp duty INR 100) No cost

2 days

12 days

No cost

9 days

No cost

* Takes place simultaneously with another procedure. source

[Source]

Detailed Steps and Explanation of procedure to start Business in India Procedure 1.

Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (National) Time to complete: 1 day Cost to complete: INR 100 Procedure:The process to obtain the Director Identification Number (DIN) is as follows: 1. Obtain the provisional DIN by filing application Form DIN-1 online. This form is on the Ministry of Corporate Affairs 21st Century (MCA 21) portal. The provisional DIN is immediately issued. The application form must then be printed and signed and sent for approval to the ministry by courier along with proof of identity and (address): a. Identity proof (any of the following): Permanent Account Number card, drivers license, passport, or voter card; b. Residence proof (any of the following): drivers license, passport, voter card, telephone bill, ration card, electricity bill, bank statement; 2. The concerned authority verifies all the documents and, upon approval, issues a permanent DIN. The process takes about 4 weeks.

Procedure 2.
Obtain digital signature certificate online from private agency authorized by the Ministry of Corporate Affairs (National) Time to complete: 3 days Cost to complete: INR 1,500 Procedure: To use the new electronic filing system under MCA 21, the applicant must obtain a Class-II Digital Signature Certificate. The digital signature certificate can be obtained from one of six private agencies authorized by MCA 21 such as Tata Consultancy Services. Company directors submit the prescribed application form along with proof of identity and address. Each agency has its own fee structure, ranging from INR 400 to INR 2650.

Procedure 3.
Reserve the company name online with the Registrar of Companies (ROC) (National) Time to complete: 2 days Cost to complete: INR 500 Procedure: Company name approval must be done electronically. Under e-filing for name approval, the applicant can check the availability of the desired company name on the MCA 21 web site. The ROC in Mumbai has staff members working full time on name reservations (approximately 3 but more if the demand increases). A maximum of 6 suggested names may be submitted. They are then checked by ROC staff for any similarities with all other names in India. The MCA receives approximately 50-60 applications a day. After being cleared by the junior officer, the name requests are sent to the senior officer for approval. Once approved, the selected name appears on the website. Applicants need to keep consulting the website to confirm that one of their submitted names was approved. In practice, it takes 2 days for obtaining a clearance of the name if the proposed name is available and conforms to the naming standards established by the Company Act (1 day for submission of the name and 1 day for it to appear on the MCA website).

Procedure 4.
Stamp the company documents at the State Treasury (State) or authorized bank (Private) Time to complete: 1 day

Cost to complete: INR 1,300 (INR 200 for MOA + INR 1,000 for AOA for every INR 500,000 of share capital or part thereof + INR 100 for stamp paper for declaration Form 1) Procedure: The request for stamping the incorporation documents should be accompanied by unsigned copies of the Memorandum and Articles of Association, and the payment receipt. The company must ensure that the copies submitted to the Superintendent of Stamps or to the authorized bank for stamping are unsigned and that no promoter or subscriber has written anything on it by hand. The Superintendent returns the copies, one of which is duly stamped, signed, and embossed, showing payment of the requisite stamp duty. The rate of stamp duty varies from state to state. According to Article 10 and Article 39 of the Indian Stamp Act (1899), the stamp duty payable on the Memorandum and Articles of Association for company incorporation in Mumbai, Maharashtra, is as follows: a. Articles of Association: INR 1000/- for every INR 500,000/- of share capital (or part thereof), subject to a maximum of INR 50,000,000; b. Memorandum of Association: INR 200; c. Form-1 (declaration of compliance): INR 100. Once the memorandum and articles of association have been stamped, they must be signed and dated by the company promoters, including the company name and the description of its activities and purpose, father-"s name, address, occupation, and the number of shares subscribed. This information must be in the applicants handwriting and duly witnessed.

Procedure 5.
Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (National) Time to complete: 5 days Cost to complete: INR 14,133 (see comments) Procedure: The following forms are required to be electronically filed on the website of the Ministry of Company Affairs: e-form 1; e-form 18; and e-form 32. Along with these documents, scanned copies of the consent of the initial directors, and also of the signed and stamped form of the Memorandum and Articles of Association, must be attached to Form 1. The fees for registering a company can be paid online by credit card or in cash at certain authorized banks. One copy of the Memorandum of Association, Articles of Association, Form 1, Form 32, Form 18 and the original name approval letter, consent of directors and stamped power of attorney must be physically submitted to the Registrar of Companies. The certificate of incorporation is sent automatically to the registered office of the company by registered or rush mail. The registration fees paid to the Registrar are scaled according to the companys authorized capital (as stated in its memorandum):

a. INR 100,000 or less: INR 4,000. If the nominal share capital is over INR 100,000, additional fees based the amount of nominal capital apply to the base registration fee of INR 4,000: b. For every INR 10,000 of nominal share capital or part of INR 10,000 after the first INR 1,00,000, up to INR 500,000: INR 300; c. For every INR 10,000 of nominal share capital or part of INR 10,000 after the first INR 500,000, up to INR 5,000,000: INR 200; d. For every INR 10,000 of nominal share capital or part of INR 10,000 after the first INR 5,000,000, up to INR 1 10,000,000: INR 100; e. For every INR 10,000 of nominal share capital or part of INR 10,000 after the first INR 10,000,000: INR 50. The payment of fees can be made: 1. offline: one can upload all incorporation documents and generate the payment challan. Against this challan, the applicant must obtain a demand draft for filing fees amount in favour of -" the Pay and Accounts Office, Ministry of Corporate Affairs, New Delhi" and this demand draft is payable in Mumbai. The applicant must make the payment at specified branches of certain banks. It takes around one week for clearance of payment. Only after the clearance of payment does the ROC accept the documents for verification and approvals; 2. online: the applicant makes the payment by credit card and the system accepts the documents immediately. Please note that in Mumbai, the ROC requests for pre-scrutiny of documents for any corrections, before they are uploaded. Once the documents have been uploaded, they can then be approved without any further correction. The online filing mechanism requires only one copy of scanned documents to be filed (including stamped MOA, AOA, and POA). Schedule of Registrar filing fees for the articles and for the other forms (l, 18, and 32): a. INR 200 for a company with authorized share capital of more than INR 100,000 but less than INR 500,000; b. INR 300 for a company with nominal share capital of INR 500,000 or more but less than INR 2,500,000; c.INR 500 for a company with nominal share capital of INR 2,500,000 or more.

Procedure 6.
Make a seal (Private) Time to complete: 1 day Cost to complete: INR 350 (cost depends on the number of seals required and the time period for delivery) Procedure: Although making a company seal is not a legal requirement for the company to be incorporated, companies require a seal to issue share certificates and other documents. The cost depends on the number of words to be engraved, the number of seals required, and the time period for delivery. The cost can range from INR 300 to INR 500.

Procedure 7.
Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd., as outsourced by the Income Tax Department (National) Time to complete: 7 days Cost to complete: INR 67 (INR 60 application fee + 12.36% service tax + INR 5 for application form, if not downloaded) Procedure: Under the Income Tax Act, 1961, each person must quote his or her Permanent Account Number (PAN) for tax payment purposes and the Tax Account Number (TAN) for depositing tax deducted at source. The Central Board of Direct Taxes (CBDT) has instructed banks not to accept any form for tax payment (challan) without the PAN or TAN, as applicable. The PAN is a 10-digit alphanumeric number issued on a laminated card by an assessing officer of the Income Tax Department. In order to improve PAN-related services, the Income Tax department (effective July 2003) outsourced their operations pertaining to allotment of PAN and issuance of PAN cards to UTI Investor Services Ltd, which was authorized to set up and manage IT PAN Service Centers in all cities where there is an Income Tax office. The National Securities Depository Limited (NSDL) has also launched PAN operations effective June 2004, setting up TIN Facilitation Centers. The PAN application is made through the above mentioned service centers using Form 49A, with a certified copy of the certificate of registration, issued by the Registrar of Companies, along with proof of company address and personal identity. A fee of INR 60 (plus applicable taxes) applies for processing the PAN application. IT PAN Service Centers or TIN Facilitation Centers will supply PAN application forms (Form 49A), assist the applicant in filling out the form, collect filled-out forms, and issue an acknowledgement slip. After obtaining PAN from the Income Tax department, UTIISL or NSDL as the case may be, will print the PAN card and deliver it to the applicant. The application for PAN can also be made online but the documents still need to be physically dropped off for verification with the authorized agent. For more details see(www.incometaxindia.gov.in , www.utiisl.co.in , and www.tin.nsdl.co.in )

Procedure 8.
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department Time to complete: 7 days Cost to complete: INR 57 (INR 50 application fee + 12.36% service tax) Comment: The Tax Account Number (TAN) is a 10-digit alphanumeric number required of anyone responsible for deducting or collecting tax. The provisions of Section 203A of the

Income Tax Act require that all persons who deduct or collect tax at the source must apply for a TAN. The section also makes it mandatory for the TAN to be quoted in all taxdeducted-at-source (TDS) and tax-collected-at-source (TCS) returns, all TDS/TCS payment challans, and all TDS/TCS certificates issued. Failure to apply for a TAN or to comply with any of the other provisions of the section is subject to a penalty of INR 10,000/- . The application for allotment of a TAN must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to receive e-TDS returns. Locations of TIN Facilitation Centres can be found at www.incometaxindia.gov.in and http://tin.nsdl.com The processing fee for both applications (a new TAN or a change request) is INR 50 (plus applicable taxes). After verification of application, the same is sent to the Income Tax Department and upon satisfaction the department issues the TAN to the applicant. The national government levies the income tax. Since outsourcing, any authorized franchise or agent appointed by the National Securities Depository Services Limited (NSDL) can accept and process the TAN application. The application for a TAN can be made either online through the NSDL website (www.tin-nsdl.com) or offline. Upon payment of the fee by credit card, the hard copy of the application must be physically filed with the NSDL.

Procedure 9.
Register with the Office of Inspector, Shops, and Establishment Act (State/Municipal) Time to complete: 2 days Cost to complete: INR 6,500 (INR 2000 + 3 times registration fee for trade refuse charges) Procedure: A statement containing the employer-"s and manager-"s names and the establishments name (if any), postal address, and category must be sent to the local shop inspector with the applicable fees. According to Section 7 of the Bombay Shops and Establishments Act,-(1948), the establishment must be registered as follows: Under Section 7(4), the employer must register the establishment in the prescribed manner within 30 days of the opening of the business. Under Section 7(1), the establishment must submit to the local shop inspector Form A and the prescribed fees for registering the establishment. Under Section 7(2), after Form A and the prescribed fees are received and the correctness of the statement on the form is satisfactorily audited, the certificate for the registration of the establishment is issued on Form D, according to the provisions of Rule 6 of the Maharashtra Shops and Establishments Rules of 1961. Since the amendments in the Maharashtra Shops and Establishment (Amendment) Rules, 2003 dated 15th December 2003, the Schedule for fees for registration and renewal of registration (as per Rule 5) is as follows:

a. 0 employees: INR 100; b. 1 to 5 employees: NR 300; c. 6 to 10 employees: INR 600; d. 11 to 20 employees: INR 1000; e. 21 to 50 employees: INR 2000; f. 51 to 100 employees: INR 3500; g. 101 or more employees: INR 4500. Hence in the given case the registration fees would be INR 2000, as there are 50 employees In addition, an annual fee (three times the registration and renewal fees) is charged as trade refuse charges (TRC), under the Mumbai Municipal Corporation Act,-(1888).

Procedure 10.
Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) Time to complete: 12 days Cost to complete: INR 5,100 (registration fee INR 5000 + stamp duty INR 100) Procedure: Beginning April 1, 2005, the sales tax was replaced by the VAT, which requires registration by filing Form 101. The authorized representative signing the application must be available at the Sales-Tax Office on the day of application verification. The applicant goes to the Sales-Tax Office and up to the registration counter. The clerk at the counter verifies that the applicant has all the required documents and gives the applicant a token (waiting number). After a short wait, the applicant-"s number is called and the applicant approaches the desk of a sales-tax officer. There, all the information on Form 101 is manually entered into the system by the officer. Within 10 minutes, the system generates a Tax Identification Number (TIN) Thereafter, the company is considered fully registered to pay taxes. However, the applicant must wait between 10 and 15 days to receive the VAT registration certificate by mail. In addition to Form 101, other accompanying documentation includes: 1) Certified true copy of the memorandum and articles of association of the company;2) Proof of permanent residential address. At least 2 of the following documents must be submitted: copy of passport, copy of drivers license, copy of election photo identity card, copy of property card or latest receipt of property tax from the Municipal Corporation, copy of latest paid electricity bill in the name of the applicant;3) Proof of place of business (for an owner, in the case of Doing Business): Proof of ownership of premises viz. copy of property card, ownership deed, agreement with the builder or any other relevant documents;4) One recent passport-sized photograph of the applicant;5) Copy of Income Tax Assessment Order with PAN or copy of PAN card;6) challan on Form No. 210 (original) showing payment of registration fee at INR 5000 (in case of voluntary RC) and INR 500 (in other cases).

The whole process will be put online by the spring of 2009. This means that rather than physically having to go to the office, companies will fill in all their details online for Form 101 and then go to the office only so that the Sales Tax Office can verify the above listeddocumentation.

Procedure 11.
Register for Profession Tax at the Profession Tax Office (State) Time to complete: 2 days Cost to complete: No cost Procedure: According to section 5 of the Profession Tax Act, every employer (not being an officer of the government) is liable to taxation and shall obtain a certificate of registration from the prescribed authority. The company is required to apply to the registering authority using Form 1. The registration authority for the Mumbai area is located at Vikarikar Bhavan, Mazgaon in Mumbai. Depending on the nature of the business, the application should be supported with such documents as proof of address, details of company registration number under the Indian Companies Act (1956), details of the head office (if the company is a branch of company registered outside the state), company deed, certificates under any other act, and so forth.

Procedure 12.
Register with Employees Provident Fund Organization (National) Time to complete: 12 days Cost to complete: No cost Procedure: The Employees Provident Funds and Miscellaneous Provisions Act (1952) applies to an establishment, employing 20 or more persons and engaged in any of the 183 industries and classes of business establishments, throughout India excluding the State of Jammu and Kashmir. The applicant fills in an application and is then allotted a social security number. The Provident Fund registration focuses on delinquent reporting, underreporting, or non-reporting of workforce size. Provident Fund registration is optional if the workforce size is not more than 20. The employer is required to provide necessary information to the concerned regional Provident Fund Organization (EPFO) in the prescribed manner for allotment of Establishment Code Number. No separate registration is required for the employees.

Nevertheless, all eligible employees are required to become members of the Fund and individual account number is allotted by the employer in the prescribed manner. As per an internal circular, the code number is to be allotted within 3 days of submission, if the application is complete in all respects. However, in many cases applicants have received the intimation letter with the code number in 12 to 15 days. An online application facility is not provided so far.

Procedure 13.
Register for medical insurance at the regional office of the Employees State Insurance Corporation (National) Time to complete: 9 days Cost to complete: No cost Procedure: Registration is the process by which every employer/factory and every paid employee is identified for insurance purposes and their individual records are set up for them. As per the Employees State Insurance (General), Form 01 must be submitted by the employer for registration. It takes 3 days to a week for the Employer Code Number to be issued. The-" "intimation letter""- containing the Code Number is mailed to the employer and that takes an additional couple of days. The Employee-"s individual insurance is a separate process that is initiated upon the employer-"s registration. The employer is responsible for submitting the required declaration form and employees are responsible for providing correct information to the employer. The employee temporary cards (ESI Cards) are issued on the spot by the local offices in many places. The temporary cards are valid for 13 weeks from the date of the employees appointment. It takes about 4 to 5 weeks to get a permanent ESI card.

How to raise prices and not lose business

If theres one worry that dogs business owners, its the problem of having to raise prices. Inflation is part of every business reality, and sooner or later you will have to up prices in order to keep the margins. But as long as customers see value in your product or service, raising prices is not going to sound a death knell for your business. Here are some tips on how you can increase prices and get away with it: Your business must differentiate itself sufficiently. Being the cheapest in the business is not a sustainable USP. Competing on price alone, sooner or later, some rival will undercut you. Therefore you need to make sure that your product is perceived as being different from that of your competitor, by your customers. If you manage to set yourself apart, you will carve a special place in the customers mind and

consequently a specific niche in the market. When you gain customer loyalty, you will find that the demand for your product will not fluctuate with price. Focus on delivering value. Most discerning customers will look for maximum value for their dollar, rather than rock bottom rates. With value, you can always win over price. Target the right people. Dont chase the entire world when trying to sell. Especially in B2B businesses, 80% of revenue comes from 20% of clients. Focus on developing high value buyers, as they are less likely to be swayed by increasing prices. Invest in your customers. Dont forget to build and sustain relationships. That is what draws your customers back to you time after time. A good product must be backed by exceptional service, because that is what secures loyalty. Time it right. Dont put off the decision until it reaches flashpoint. If the competition is raising prices, take the bait and follow suit. It is best to increase rates with the herd, rather than lag behind and then stand out for being the only one to do so. Sphere: Related Content Add to del.icio.us Digg This! Share on Facebook Discuss on Newsvine Stumble It! Email the author Posted by Indian Finance Commentator at 3:55 PM 2 comments Labels: Management, Pricing, Small Business

Friday, November 30, 2007

Ways to manage the business cycle
Managing the business cycle is one of the biggest challenges that entrepreneurs can face. And there is no escaping it. Given the globalized nature of business, events in far shores can make a big impact on your business, let alone the more predictable seasonal variations. The recent sub prime crisis in the United States is an example. Not being prepared to withstand such vagaries could well mean the end of the business. Therefore, for a business owner, it is very important to learn this lesson early on, lest he or she is forced to do it the hard way. Here are some ideas on how a business can be better prepared to handle the ups and downs of its business cycle. One must learn to anticipate, although that is easier said than done. Many businesses have been caught unawares by an unexpected recession. Since businesses are highly interwoven, even developments in far flung corners have a way of creeping up on you. It is very important to stay abreast of major economic trends, track regulatory changes and stay clued into the goings-on within your industry. If you can afford it, and your business justifies it, hire someone who can forecast.

Rethink capital expenditure that does not necessarily mean cut back. In the face of a downturn, the conservative may defer capital investment; the proactive may go ahead in order to gain a first mover advantage when the economy recovers. Naturally, the decision depends on your actual circumstances. You will also have to devote careful thought to how you will manage inventory closer to a recessionary period. Being saddled with piling inventory is no joy, but neither do you want to be caught with no product to sell when demand picks up. The inventory decision will also be influenced by the nature of the product (perishable/ seasonal) and production compulsions (minimum run). If you can store your product, it may be worth negotiating better terms with vendors in return for maintaining off-take in tough times. Continue to advertise. This is the first casualty when business is slow. Sadly, most decision makers forget that advertising is an investment that can help maintain your business in the customers field of vision. During recessionary times, advertising rates go down too, so you can secure better visibility for your money. Reassess your staffing needs again, we dont necessarily mean downsize. Obviously, employee headcount will vary with the business cycle. However, do remember, that during off season, the labor pool overflows. If you have been struggling to find the right people, you might get lucky during the slow season. Add to del.icio.us Digg This! Share on Facebook Discuss on Newsvine Stumble It! Email the author Posted by Indian Finance Commentator at 5:42 PM 7 comments Labels: Family Business, Management, Small Business

Friday, November 23, 2007

Market your small business at low cost
Starting a new business in India costs a bit as it is, without taking into account the resources needed to market it. So what is it that you, as a small business owner, can do to get the word out about your services, without burning a hole in your pocket? Although it may seem improbable, there are indeed a number of low cost ways to market your product or service. Heres our top 10 list.
1. Leverage the support of your friends and relatives to create favourable word-out-mouth. A simple tactic is to mail your acquaintances announcing the new business venture. Even if they dont need your services, they may well know someone else who does. 2. Enrol in trade organizations or groups which could give you the opportunity to connect with others in your line of work. Seek to participate in any publicity event, presentation and demo. 3. Supporting a cause or charity event that reflects your companys values can create a very favourable image for the business.

4. Once your business picks up speed, ask satisfied customers for referrals. That costs nothing yet is worth everything. 5. Use the Internet to spread awareness about your line of work, not just your company. The way to do this is to contribute useful and high quality content to sites that fit your business end user profile. 6. Again, be part of the online community, whether it is by way of blogging or being in a discussion forum. We reiterate that the trick is not to oversell no one wants a hard sales pitch in a friendly chat room. 7. Use signature files at the end of all your e-mails. Keep them short but precise. 8. You can even do some low cost or free advertising on the Net. Check out Internet sites that offer free classified advertising space. 9. If your business has a good website, look to link it with others. Placing inbound links from popular sites will push up your websites search engine ranking. 10.Use traditional media, like press or local radio to spread awareness. An advertorial which is part informative, part commercial can get you much needed recognition.

Add to del.icio.us Digg This! Share on Facebook Discuss on Newsvine Stumble It! Email the author Posted by Indian Finance Commentator at 1:46 PM 0 comments Labels: Low Cost Marketing, Marketing Small Business, Small Business, Starting a Business in India

Thursday, November 8, 2007

An Online Storefront That Sells
Its the festive season and a busy time for most business owners in India. Retail stores are wearing a new look in a bid to attract customers. If your business has an online storefront, its the right time to ensure that its squeaky clean, shining and a place that visitors will want to buy at. Just as a brightly lit department store entices passers-by to step in, your online storefront should look nice and inviting. If your site hasnt changed in years, now is the time to overhaul it. Design it like you would any physical store, paying attention to both form and function. That means easy navigation, a professional display with all relevant information and photographs and a look that is stylish and consistent with the image your company wishes to project. Getting the shoppers in is only one part of the good news. Now you have to make sure they buy. Remember that convenience is one of the biggest motivators of online shoppers. Therefore, ensure that the purchase process in your online store is hassle free an obstacle ridden storefront is equivalent to an indifferent sales force.

Some of the must-dos:

List out all the important commercial details such as total price inclusive of delivery & taxes, lead time and refund policies. For third party products, mention warranties and service networks. Cap the number of click-throughs to a maximum of three in order to complete a purchase. Use a reliable payment gateway like PayPal for credit card purchases. Slow download speed is the electronic equivalent of a long billing queue, and that is where a number of customers can drop off. Choose a reliable web hosting service, so that you are not ridden with server related problems. The same goes for your phone lines.

The sales process is consummated only when you complete delivery to the customers satisfaction. Therefore, remember to spruce up the back-end as well:

Inventory management is super important. In a physical store, if a product is on the shelf, its there to be bought. In an online environment, the fastest way to lose a customer is to get back a week later with the news that the product is no longer available. Also, tie up with a reliable logistics partner who can keep up delivery standards. If youre selling third party products, be careful about who you represent. At the end of the day, it is your stores reputation on the line, so make sure that the products are not shoddy.

All done? Happy selling. Sphere: Related Content Add to del.icio.us Digg This! Share on Facebook Discuss on Newsvine Stumble It! Email the author Posted by Indian Finance Commentator at 10:33 AM 1 comments Labels: Online Shopping, Online Store, Small Business, Starting a Business in India

Wednesday, November 7, 2007

Making a budget for your small business
Budgeting is not just an art, it is a learning process in itself. A well made budget is critical to the survival of any business. It tracks the flow of finances and provides insight into those areas where there is excessive expenditure, thereby allowing an opportunity to make corrections. A small business can make budgets at different levels one for the business as a whole, or for special projects, for example, a marketing campaign. Budgeting is a complex exercise, and is always subject to revision since it has to reflect ground realities. Therefore, it must be looked at as the first step towards understanding the financial position of the business and not a be-all. The following tips may come in handy for a small business owner about to embark on his or

her first budgeting exercise: Err on the side of caution. Keep revenue expectations low and overstate costs. Remember, there will always be that odd contingency that will suck extra funds from the system. Favor business growth over cost control. There will be times when you need to spend more than what you initially intended on a specific activity. If that is going to contribute to the enlargement of the business, go for it. A budget must not limit the prospects of your business; however, use this as a learning to be more accurate in your future estimates. A budget, however well made, is good as naught if not monitored closely. When expenses come close to the pre-set limits, act quickly to see whether they need to or can be contained. Watch the cash flow, which is even more important than profit. A business that spends more frequently than it collects is heading towards a tight spot. Therefore, while making revenue projections, bear actual credit terms in mind. It is worth closing a contract at a lower price on cash and carry basis, versus a high price-long credit option. Budget for contingencies, and keep adequate liquidity to meet those emergencies. Finally, be realistic. Costs will go up, some customers will not pay and a few orders may not materialize. A well made budget must recognize these realities, yet must not be so easy that it throws no challenge to the management. Sphere: Related Content Add to del.icio.us Digg This! Share on Facebook Discuss on Newsvine Stumble It! Email the author Posted by Indian Finance Commentator at 2:52 PM 0 comments Labels: Small Business, Small Business Financing in India, Starting a Business in India

Tuesday, November 6, 2007

Choosing The Right Franchisor
When you start a new business, you would be mostly advised to venture into a field that you either understand or are passionate about. If you are looking to grow an existing business, you might diversify into a related area. But sometimes, business owners plunge headlong into a totally new field by buying a franchise. If you wish to follow suit, choose the opportunity with care, since theyre not all alike. Although a franchise can give you a launching pad to commence business, theres still a great deal of groundwork to be done prior to signing up. Investigating the credentials of the franchisor has to be among your topmost priorities at this stage. The following guidelines could prove useful when youre negotiating to buy a franchise: How eager is the franchisor? This will be apparent right at the negotiation stage itself. In a franchised business, the franchisor has to be the driving force if the brand is to be successful. A relaxed or complacent attitude could signal that the parent company is vulnerable to a

strike from competitors. Similarly, if the franchisor is non-responsive, it could indicate that they wont pay you enough attention after you sign up. Look for other opportunities if the chemistry doesnt seem right. What are their growth plans? While you would like to ally with a brand that has an aggressive growth agenda, remember that it could be a double edged sword. Every franchisor will target the maximum number of sign-ups possible and that could work against the franchisees interests, since it limits territory and encourages infighting. Will they stand by you? Since youre entering unknown territory, you will rely on the franchisors support to see you through the initial period. Check out what the training and support calendar looks like. Is there a marketing plan laid out which can help you break into the market? Some indicators would be the number of days per month that the franchisors staff will spend at your location and the number of people assigned to take care of your requirements. If the franchisor is short staffed, you may find that they will not be able to support you adequately in times of crisis. What is their reputation like? Every franchisor will sell you success stories of other franchisees in a bid to sign you up. Dont let it rest at that find out how the parent company is faring as well, as their financial health is very crucial to the stability of the business. Dont assume that theres always a sound company behind a strong brand. A fast growing franchisor may brag about how theyve grown in recent years. Treat that as a warning signal usually, a spate of new franchisee signups is accompanied by an equally large number of break-ups. Make sure you are not signing up with the hire and fire variety. Be sure to speak with at least a couple of existing franchisees to get their perspective on the parent company. If they seem satisfied, the opportunity is probably worth considering. Are the terms fair? The franchisor will have a standard agreement that both parties need to sign. Since this is the guiding document for all franchisees, you can expect that it will not be changed to suit your preferences. Make sure that you understand the clauses fully, especially those that deal with territorial rights, financial outlay, terms of separation and dispute resolution. While you can expect that the terms will be loaded in favour of the franchisor, dont sign something that is blatantly unfair to the franchisee. Quite often, the reason for buying a franchise is so that the existing infrastructure can be put to better use. But it is equally important that you dont sign up the wrong opportunity, just so you can keep the staff busy. Sphere: Related Content Add to del.icio.us Digg This! Share on Facebook Discuss on Newsvine Stumble It! Email the author Posted by Indian Finance Commentator at 10:43 AM 0 comments

Labels: Franchise Business in India, Small Business, Starting a Business in India

Wednesday, October 31, 2007

Time Management for Businesses
Time management is one of the biggest challenges that a small business owner faces, day in, day out. While there will never be enough time to complete everything on your list to perfection, some simple time management techniques can help you squeeze a fair bit more into your day. Time is, beyond doubt, among our most valuable resources. And for businesses in India, keeping to a schedule can be near impossible, given the environmental uncertainties and day to day chaos. Owners of small businesses find it particularly hard to balance their numerous responsibilities within a regular work day. But you have no choice. As an entrepreneur, you will have to find ways to improve your time management techniques so that you can cope with interruptions and unexpected developments. This may be stating the obvious, but most often, the problem is not lack of time, but an absence of clear goals. On any project, large or small, setting out clear objectives can help one understand the processes (and hence the time) that are required in order to reach the goal. It goes without saying, that once the target is set, the planning activity becomes crucial. To use a tired clich, if you fail to plan, then plan to fail! Planning is required at different levels from day to day, for the short term and longer. A to-do list an absolute must. You can also use a 2x2 matrix in which you can classify tasks as urgent/not urgent and important/unimportant. That tells you which you must attack first it also helps you delegate those that dont need your personal attention. Also, keep your planner and phone book updated and handy. Not surprisingly, one of the biggest time consumers are time-wasting tactics. Procrastination is the undoing of many a business person and everyone does it to a certain degree. The trick is to not put off unpleasant tasks till they reach a flashpoint. Spend some time each day on such matters, so they dont build up. If youre a stickler for the details, remember that nothing is perfect. Often, we can get by pretty well by doing certain things well enough rather than spending more and more time on getting them just right. You have to know when to stop overworking something that is as important to time management as anything else.

Market your small business at low cost

Starting a new business in India costs a bit as it is, without taking into account the resources needed to market it. So what is it that you, as a small business owner, can do to get the word out about your services, without burning a hole in your pocket?

Although it may seem improbable, there are indeed a number of low cost ways to market your product or service. Heres our top 10 list.
1. Leverage the support of your friends and relatives to create favourable word-out-mouth. A simple tactic is to mail your acquaintances announcing the new business venture. Even if they dont need your services, they may well know someone else who does. 2. Enrol in trade organizations or groups which could give you the opportunity to connect with others in your line of work. Seek to participate in any publicity event, presentation and demo. 3. Supporting a cause or charity event that reflects your companys values can create a very favourable image for the business. 4. Once your business picks up speed, ask satisfied customers for referrals. That costs nothing yet is worth everything. 5. Use the Internet to spread awareness about your line of work, not just your company. The way to do this is to contribute useful and high quality content to sites that fit your business end user profile. 6. Again, be part of the online community, whether it is by way of blogging or being in a discussion forum. We reiterate that the trick is not to oversell no one wants a hard sales pitch in a friendly chat room. 7. Use signature files at the end of all your e-mails. Keep them short but precise. 8. You can even do some low cost or free advertising on the Net. Check out Internet sites that offer free classified advertising space. 9. If your business has a good website, look to link it with others. Placing inbound links from popular sites will push up your websites search engine ranking. 10.Use traditional media, like press or local radio to spread awareness. An advertorial which is part informative, part commercial can get you much needed recognition.

India 'one-person company' proposal

Business Standard reports that the draft Companies Bill 2007 has proposed a new entity called one-person company (OPC) that will be a private limited type of entity for an individual promoter. Currently, many individuals conduct business through proprietorship or partnership entities - both these forms have simpler compliance requirements but pose unlimited liabilities on the promoter(s). The OPC is expected to provide individual entrepreneurs the flexibility and low cost of proprietorship/partnership concerns while restricting their personal liabilities similar to a private limited company. This bill is being studied by various departments of the government and if approved would go to the Parliament for legislative approval at some point in the near top medium term future. This is a positive move for business people and will boost entrepreneurship in India. Sphere: Related Content Add to del.icio.us Digg This! Share on Facebook Discuss on Newsvine Stumble It! Email the author Posted by Indian Finance Commentator at 10:10 AM 2 comments Labels: Sole Proprietorship in India, Starting a company in India

Wednesday, October 3, 2007

When is a sole proprietorship appropriate in India ?
Technorati Profile When you are toying with your first business idea, the initial costs and procedural encumbrances associated with company formation in India may deter you. While a company (private or public limited) structure offers its directors and promoters a certain amount of security should things turn sour with the business, a sole proprietorship format can work just fine under the right conditions. In India, the majority of businesses are sole proprietorships. Obviously, we are mainly talking about small, one man or family businesses. A sole proprietorship, by definition, has a single owner, who has total control over the business. In the eyes of the law, the proprietor and the proprietorship are one and the same. What this means is that the proprietor is entitled to all the profits of the proprietorship business. On the flip side, he or she is totally personally liable for any loss, debt or liabilities of any other kind. Should the business go bankrupt, the proprietors personal assets could be at risk. That being said, this business structure offers several advantages, simplicity and ease of operation being the foremost. There are hardly any formalities to starting a sole proprietorship. There is no need for registration with the Registrar of Companies, and therefore, no requirement of filing a Balance Sheet with them each year. Neither is there a need for elaborate accounting and auditing It costs next to nothing to set one up. Since the proprietors personal finances are the principal source of funding, this is a pretty big plus point. It can be set up very quickly, as opposed to establishing even a simple private limited company that can take a few weeks. And best of all, the proprietor is assured of total control over the business and complete confidentiality. A sole proprietorship makes good sense if the business has these characteristics:

Is small in scale Is relatively risk free for example a small business which does not intend to tak on major liabilities Is not geographically diversified Is heavily dependent on one individual.

Importantly, there are certain precautions that the proprietor can take to protect his or her financial position:

Make sure your personal financial assets are protected through legal structures, should your business run into trouble. Your chartered accountant should be able to advise you on this matter

Insure fixed assets, equipment etc. that may have been purchased for the business. Take adequate life / health / accident insurance cover for the proprietor.

So, if you think that you can manage the risks quite comfortably, you can choose to start the business as a proprietorship concern. But sooner or later, you will have to switch to a more complex structure when your capital and human resource/expertise requirements expand. Last but not least, a company structure ensures business continuity, whereas a proprietorship ceases when the proprietor is no more.