Private Ltd, LLP or Public Ltd, what to choose when registering for a New company in India

Deepika Sharma — Mon, 22 Jun 2020 03:54:10 +0000

The modern era has seen the maximum number of entrepreneurial pursuits among men and women of all ages, especially the Millenials. The entire credit of the phenomenon should be shared between the entrepreneurs themselves, who start and sustain a fight against the market right from the front line and the technological advancements.

WITH INNOVATION COMES THE DILEMMA

Now that so many new businesses are coming up and the existing industries are flourishing, financial challenges have truncated, there is a dilemma as well. Most people face problems when it comes to the process of company registration in India. They can work the hardest in the room and get all the deals done immediately, but the only hurdle they face is legally setting up a company in India.

TYPES OF BUSINESSES

Generally, there are seven types of companies that you can go for:

Private LimitedPublic Limited

Partnership

One Person

Sole Proprietorship

Limited Liability Partnership

Section 8 Company

There are many different types of companies entrepreneurs can build; as a result, confusion is expected, and it’s quite reasonable. Here we have come forward to show you what the best path is. But you also need to consider the fact that not everyone’s opinion should follow. Instead, you must keep in mind what your most basic demands are.

Also Read: Microfinance Institution in India for small loan

TRUNCATE YOUR CHOICES

Ask yourself, what do you exactly want out of your business, and believe us when we say that half of your problems regarding company registration in India will disappear. So, let’s focus on only two types of business registration that most entrepreneurs prefer when they start a new business in India. They are:

Private Limited Companies, and

Public Limited Companies.

Before you think of setting up a company in India, consider which of these types you wish to own. Let’s discuss them in details:

PRIVATE LIMITED

A Private Limited Company means small business. A minimum of 2 members is required to build such a company, with 200 set as the maximum limit. In this type of company, a group of shareholders constitutes the firm, and the total capital of the company is made up of the individual shares withheld by each member. In the case of Private Limited Companies, the member’s liability is limited to the number of shares they own. In this type of company registration in India, personal assets and business assets are treated separately, unlike sole-proprietorships.

PUBLIC LIMITED COMPANY

Shares of any Public Limited Company are open to being purchased by the general public. In terms of the legal and structural aspects of a Public Limited company is that it must have three directors and a minimum of seven shareholders. In the case of such a company, you can issue a virtually unlimited number of shares as opposed to its previous counterpart. You probably already know that the shares of public limited companies are listed on the stock exchange, and traders can trade them freely.

Now, here’s the catch; when it comes to Public Limited Companies, the business organisations are ultimately owned by their shareholders. Before the companies that fall under this category, they will need a clearance certificate from the Registrar of Companies (ROC).

Now that you are aware of these two different ways of setting up a company in India, you can decide wisely. Remember, as we said before, company registration in India is not a tough task, but having too many choices can ruin the fun. Think simple and get it done! Now anyone can start a new business in India quickly.

7 Reasons Why Product Merchandising are Important for any Company

Deepika Sharma — Fri, 19 Jun 2020 10:22:13 +0000

What is merchandise?

Merchandise is any product that can be bought and sold. Usually, merchandise is bought from a manufacturer to a retailer to be sold at a retail shop. All products in a shop for a display can be called as merchandise. For example, clothes in a clothes store, raw materials for clothes is merchandise and so are electronic parts and computer devices.

Difference between merchandise and merchandising

Merchandise is any product that can be bought and sold. It has a journey from a manufacturer to a retailer. Product merchandising, on the other hand, are various strategies employed by the retailer or the brand to sell the merchandise to customers. Here is an example –
A supermarket has ordered in new dishwashing soaps (merchandise) as they are running out of the inventory. On the other hand, there are promotional discounts being run by them for the old, leftover stock, where they give Rs. 10 off on purchase of every one dishwashing soap (merchandising)

Why is product merchandising important?

Stock is a retailer’s biggest cost as well as asset. In case anything happens to the stock, the retailer will be at loss. The profit, as well as the livelihood of the retail store, will also be affected.
Product merchandising is increasingly considered as necessary in contemporary times to attract customers. If you are unsure about the process, you can always employ an expert merchandising company for your products.

1. Merchandising works for your brand in the long run

When running promotional offers or giving samples out to customers, your brand gets popularised. Customers sit up and notice because who doesn’t like free goods or discounts?
Similarly, if your products have a business card, brand-specific packaging and logo on the packaging, customers will have a better recall value of your brand. Receiving free samples or discounts also helps customers remember a brand longer.

2. It can also lead to improved exposure

Usually, the brand spends a lot of money on advertisements or posters, that customers barely notice. It is merchandising activities of giving discounted goods, promotional samples, and combo offers that stick with them.
For example, if you gave a cup as a promotional offer, the customer will remember you whenever they drink from it. Similarly, merchandise with your logo will create better recall in their minds, and you might end up with loyal customers.

3. Increase brand recognition

Frequent merchandising activities will not only make your customers look forward to such activities, but also come back to you looking for more. For them, the brand value and product value is enhanced if they are given offers and incentive to buy your products.
More importantly, you might also get a lot of word-of-mouth advertisement from your customers if they are happy with you.

4. Low-cost and effective marketing

Creating a TV commercial may come as an expensive undertaking. Roping in a celebrity, strategizing for a commercial-worthy idea and shooting-editing it takes a lot of time and resources. As compared to that, merchandising involves promoting the products you have already produced at a slightly less profitable margin.
When your customers know your brand from the performance of the product, they are more likely to come back. For them, if the product works, the brand becomes a favourite. This is why merchandising is extremely effective and low-cost.

Merchandising a product is becoming increasingly necessary where there are more products than ever. The advertising also creates a lot of noise that a brand has to sieve through to reach customers. Therefore, working at the first step, where they buy the merchandise from is the right way.

Forem: Deepika Sharma