Common types of businesses

The type of business organization you choose will determine how you run it. Here are some of the most common types of business entities:

Sole Proprietorship

In a sole proprietorship, the proprietor pays their income tax on the business’s profits. When it comes to setting up or dissolving a business, sole proprietorships are the easiest. This is why they are popular among sole proprietors, self-employed contractors, freelancers, and consultants. Creating a separate business isn’t often necessary for small businesses. Therefore, sole proprietorships are popular. 

In contrast to an LLC, a corporation, or a limited liability partnership, there is no separate legal entity in a sole proprietorship. Consequently, the sole proprietor is not exempt from any responsibilities or actions the company takes.

Any debt owed by the sole proprietorship is the responsibility of the owner. Likewise, a sole proprietorship’s profits belong to the business owner only.

Partnership

In a partnership, two or more people enter into a formal agreement to manage and operate a business and split the profits.

There are a variety of ways to form a partnership. Partners may or may not have unlimited liability, depending on the terms of the agreement. Another type of partnership is the “silent partner”, in which one party does not participate in the operations.

Each partner is responsible for their own legal and financial responsibilities in a general partnership. The partnership’s debts are the responsibility of each member. Also, the profits are equally split unless agreed otherwise. In a partnership agreement, the details of profit-sharing are likely to be written out in a partnership deed.

Limited Liability Partnerships (LLP)

It is usual for accountants, lawyers, and architects to form limited liability partnerships (LLPs). Equity partners and salaried partners are two further classifications used by law and accounting firms. Salaried partners do not hold any equity in the company. In most cases, they receive additional compensation based on their performance.

To form an LLP, you need to have at least one general partner personally liable for the partnership’s liabilities. The responsibility of at least one partner is limited only to the amount invested. Unlike the active partners, the silent ones are not involved in the company’s day-to-day management.

Limited Liability Companies (LLC)

LLCs shield their owners from personal accountability for the company’s debts and liabilities. Hybrid businesses and limited liability corporations (LLCs) combine a corporation and a partnership or a single proprietorship.

Company

Groups of people form a corporation to legally run a commercial or industrial venture. Depending on the local corporate legislation, a business can be structured in various ways for tax and financial liability considerations. The distinction between private and public companies can also be made. The two companies are vastly different in ownership, rules, and financial reporting.

A company is distinct from its owners, managers, and employees. Most businesses are set up to profit, while some are for charitable purposes. Companies and corporate hierarchies differ from country to country, yet there are many similarities as well.

Documents required to open different types of business in India

A sole proprietorship does not require registration in India. Therefore, you will not need any documents for that. However, you might need a PAN number and the TIN for tax purposes. 

For a partnership business, you need an address proof of the business, identity proof, partnership registration certificate, GST certificate, etc. 

To start a company, you need the following documents:

• No objection certificate (NoC)
• Company PAN card
• Founders agreement
• TIN
• Non-disclosure agreement
• GSTIN
• Shareholder agreement
• Certificate of incorporation

Registering an online business in India

All unicorn businesses in India had to start somewhere. You must first visit the official website of the Ministry of Corporate Affairs to begin the process. Fill out the DIR3 and DSCl. Applying for a DIN online is as simple as filling out these two forms.

If you’re filling out these forms, keep in mind that you’ll need to attach specific papers. These documents are proof of address, proof of employment, a passport, and educational credentials. You will also need to provide passport-sized photos.

The next step is to apply for a Digital Signature Certificate (DSC). You cannot apply for registration online unless you have a Digital Signature Certificate (DSC). Documentation is required for the DSC, as it is for the DIN. It is necessary to have a valid photo ID and all documents mentioned above.

Conclusion

There are many types of top businesses to start in India. Achieving online business growth in India requires you to register your business first. But before anything, you need a strong plan to start a business. During this process, you will decide on a business model and adopt one of the suitable business structure types mentioned above.

FAQs

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Shopmatic merchants will be able to leverage all paymentoptions on their web stores after integrating with PayU. Using PayU as a payment option will allow merchants to give their customers a wide range of payment options such as credit/debit cards, UPI, e-wallets, etc.

This tie-up will also allow any Shopmatic merchant to enable its PayU Payments Solution in just a single click.

Noopur Chaturvedi, Country Head, Small and Medium Businesses, PayU said, “As an industry leader, we are constantly looking for ways to make the payment experience simpler & effective for the merchants in India, accelerating their growth in the digital ecosystem. We are delighted to partner with Shopmatic to extend instant and easy omnichannel payments solutions to its merchants. Through this partnership with Shopmatic, we are powering the ambitions of the small and medium merchants. We are confident that our innovative payments solutions will simplify payment processes for Shopmatic’s merchant partners.”

Click on these links below to know more about PayU-Shopmatic partnership:

The Economic Times, Money Control, Deccan Chronicle, Silicon India, Asian Age, Techstory, Business World, APN News, India Education Diary, India Updates, Newsd, The Weekend Leader, Daily Hunt,NP News24

With more than 4.5 lakh merchants and growing, we give our merchants an opportunity to give their customers a seamless checkout experience, expand the reach and grow their business. To know more,

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And now, with an aim to empower Indian businesses for their growth and to solve their payment related issues, we have partnered with Zoho CRM. We are happy to unveil this one of its kind partnership where businesses’ smooth growth is the priority!

With this partnership, businesses like yours can manage client’s information, business details and their payments: all in one place. This feature is best suited for:

• Sales teams of all sizes
• E-Commerce & retail businesses
• Finance & insurance agencies
• OEM production & distribution vendors

Here is what Nameet Potnis, VP Marketing & Growth, PayU SMB has to say about this partnership: “With this association, we are expecting a surge in PayU’s SMB business, since all the merchants using PayU’s payment functionality on the Zoho CRM dashboard will be registered as PayU merchants as well.”

This partnership brings along the following powerful features for businesses:

• Collect payments directly and securely on Zoho CRM
• Easily track real time status of payment requested and handle reconciliation through Zoho CRM dashboard
• Provide customers a seamless checkout experience by giving all payment options such as credit cards, debit cards, UPI, wallets, net-banking etc

PayU-Zoho CRM integration will enhance a user’s (merchant) experience by removing the hassle of tracking customer’s online payment information on one platform and then logging into a different CRM system for other sales information and then closing the deals manually.

The tie-up aims to break this siloed approach and make the payment processes simpler. Now, Indian businesses would be able to manage their business leads as well as process and track all their online payments – all on one platform.

Commenting on the collaboration, Raju Vegesna, Chief Evangelist, Zoho Corporation, said, “We consider Zoho CRM’s integration with PayU as a great first step for further collaboration and a strong partnership. Our association with PayU India helps Indian businesses reach more customers and grow their business while also offering a seamless hyper-local solution to accept online payments.”

The vision of having a cashless economy would only be possible when we facilitate online payments for all our needs so that everyone is on the same page, connected! This partnership is another step towards that goal. We at PayU are dedicated to creating a fast, simple and efficient payment process for all our partner businesses.

Click on these links below to know more about PayU-Zoho CRM partnership:

The Times of India, CIOL, IANS Live, PTI, Business Today, India Today, India Infoline, VAR India, SME Channels, SME Street, NewsR, Banking Frontiers

The post PayU Partners with Zoho CRM, Enabling Businesses with Seamless Payments appeared first on PayU Blog.