India Entry & Business Startup Consultings

Structuring Business Model

Structuring Business Model

There are various kinds of business structures prevailing in India. Selecting a business structure is one of the most significant decisions taken by businesspersons. A successful business usually depends on the kind of structure they are using. There are different business structures prevalent in India, For instance; sole proprietor, partnership firm, one Person Company, private limited company, public limited company and Limited Liability Partnership. Entrepreneurs want to find new and innovative business models to carve out their space in the marketplace.

Building blocks of business model:

1.    The value proposition of what is offered to the market;
2.    The segment(s) of clients that are addressed by the value proposition;
3.    The communication and distribution channels to reach clients and offer them the value proposition;
4.    The relationships established with clients;
5.    The key resources needed to make the business model possible;
6.    The key activities necessary to implement the business model;
7.    The key partners and their motivations to participate in the business model;
8.    Constituting the revenue model
9.    The cost structure resulting from the business model.

Sole proprietorship

•    Sole proprietorship means a single owner.
•    The amount of profit is owned by the owner as well as the loss is also borne by owner only.
•    It doesn’t have any legal formalities as compared to Partnership or Company.
•    The capital invested in the company belongs to the owner.
•    Its benefits are ease of formation and less legal formalities.
•    One of its major disadvantages is that the owner is liable for all the business debts.

Partnership

•    Minimum members to form a partnership is 2, maximum members is 10 in the case of banking and 20 in other cases.
•    All the partners have unlimited liability.
•    The profit shared among partners is on the basis of their investment.
•    Registration of the partnership is not compulsory.
•    One partner can take action for all the partners.

Limited Liability Companies
1.    Limited Liability Partnership:
•    It provides limited liability to its owners. 
•    It is a corporate body and has its own existence in the eyes of the law.
•    It is easy to form as well as easy to become a partner. 
•    Every partner has limited liability to the extent of investment made by them. 

2.    Private Limited Company:

•    It is more flexible and easy to form than a Public company because many provisions of the Companies’ Act 2013 are not applicable to it. 
•    It can be formed with just 2 members. 
•    The number of shareholders is limited to 50 only.
•    A Private company cannot invite public to buy its shares. 

3.    Public Limited Company:

•    Company which is owned by public. 
•    Capital can be raised from the public directly through issues of shares.
•    The minimum number of directors is 3 and the minimum number of shareholders is 7.
•    There is no limit on the maximum number of shareholders. The shareholders have limited liability to the extent of the face value of its shares and the premium respectively.

One Person Company:

•    It has only one person as a member who will act as both a director as well as a shareholder. 
•    It is only allowed to a resident of India to set up a One Person Company/ Private Company.
•    Its features like perpetual succession and the separate legal entity. 
•    It can be easily incorporated without many formalities and with just one person. 

Non-Government Organization:

•    It stands for Non-Government Organization or Non-profit Company.
•     It is a citizen-based organization that works to deliver resources or serves some social or political purpose. 
•    These organizations are not meant for the purpose of profit but working selflessly for promoting a cause or development projects. 


What we do?

•    Business strategy, which tells how your company operates.
•    Mission statement including goals, objectives and Values
•    Market analysis of your specific consulting niche and potential clients
•    Opportunities, which goes hand-in-hand with your mission and values
•    Marketing and sales plan, including how you will market your services and expand your business
•    Management of the business, which may include a section on your own experience, education, and expertise
•    Financing for your debt structure, explaining financially the business will be supported
•    Provides knowledge of subsidiary and taxes that are to be paid.

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