Are you sitting idle? Have you planned to engage yourself in anything? Why not associate yourself with a start-up business? It will make you establish a business of your own as well as earn you some good money.
Haven’t heard of a start-up business? True that the lingo is new in this world, but no big deal. Here’s a detailed study of what a start-up business is and how it runs.
What is a start-up business?
Any newly formed business company can be called a start-up. They are just on the verge of their growth and establishment in the market. Generally they are small and the capital is invested by a handful of persons or an individual person. Similarly, it is run by them as well. Basically, they are a small unit offering some products, services or ideas and promoting it. Their goods, or services or ideas hold the USP that it is presently not in the market or others selling the same product do not offer a superior quality like theirs.
How is the fund raised in a start-up business?
Previously, before start-ups businesses came so much into vogue, the companies’ expenses had a tendency to cross over their revenues. This was because of the fact that the company hosted developing strategies, testing of the product campaign and marketing their ideas on the market. For all these stuffs, these start-up companies required financing. The start-up companies can gather their monetary funds by taking loans traditionally from various financial services like the banks, or extracting grants from non-profit organization, or seeking out for help from the state government.
There are incubators who can provide these start-up business people not only with funds but also with a lot of advice. If possible, loan can be taken from family and friends. Any start-up business that can thrive in the market, if they can prove their potentiality. Also, they can leave some part of the company’s share in the hands of some capital financer in exchange of monetary funds.
Qualifications of a start-up for government scheme
A firm or private ownership can be considered a start-up only if it abides by the following measures and taxation services:
- It must be running for at least 5 years from the date of its registration or incorporation.
- The company’s yearly turn over should not be more than 25 crore.
- The main focus of the company should be to highlight the purpose of innovation, evolution, growth, make products profitable to the end users, and adopt scientific and technology-based processes.
- The company should not be a separate entity of an already existing company. Further, it should also not be a reconstruction of a stagnant company.
- No public limited company or proprietorship is said to be regarded as a start-up business.
Validity of start-up business
A start-up business will not be called a start-up for its entire lifetime. It has an expiry date. A company would be ceased to work out as start-up if it has crossed 5 years from the date of its registration. Secondly, if the company’s yearly turn over crosses 25 crore, it is no more a start-up business. It may also happen that startups are required to provide DIPP within a time frame of 21 days.
So, if you want to run a start-up business, go through the Future Revolution company registration soon.