In my 5 year long Practice, a no. of people come and ask for advice for starting a business and even ask for the what Form of Business should they opt for i.e. Proprietorship Firm/ partnership Firm/ Companies. And although I am Company Secretary, but I always advice them to start with Proprietorship Business and not for Private/ Public Limited Company at initial level of his business. As when a person is going to start a business, huge investment is required and if he initially opt for the Companies (Private/ Public Limited Companies), he has to deal with another department of Registrar of Companies and to comply with additional compliances of Secretarial work. What Basic reason to advice such option for me is not only to think for our Income but for client’s perspective also. As in proprietorship, there are a no. of Benefits like:
But for Immigration Consultants, who opt to start business as Genuine Immigration Consultants, I always advice for starting a Private/ Public Limited Companies and not the Proprietorship/ partnership Firms. As in states like Punjab, Gujrat etc. where there is too much craze among people to go abroad and settle there. And as we see in newspapers and channels that because of wrong advice and wrong way these immigration consultant choose for sending the people to abroad (as seen earlier in case of Punjabi Singers who does “Kabootarbaji”), the general public gets looted and even come in trap of Foreign Police. And instead of making the future bright in foreign countries, they are being deported back to India. So why incorporating a Limited Company is better for Immigration consultant from my point of view is:
Conclusion: The reason before writing this article is not to elaborate the immigration consultants but only up to giving the benefits and limitations of having a Private Limited Companies. And I think having a Prop. Firm/ Partnership firm is good but only up to a level and if the business rises, it should be converted into Companies to get the best advantages of having Companies.
Note: The above is a general discussion and of my own personal view points. Viewpoints of other esteemed Professional are welcome.Online GST Certification Course by TaxGuru & MSME- Click here to Join
CS Mohit Saluja
Company Secretary in Practice
Email id: firstname.lastname@example.org