How to Register Foreign Companies in India

India is one of the fastest growing economies in the world with healthy resources and a large market base. In the past few years, there is a great boost in foreign direct investment in India (FDI) because of the changed regulatory environment in the past few years. Therefore, it is very easy for foreign nationals to start a business in India.

Sometimes people get often confused in “Indian Company” and “Foreign Company”. If a foreign national incorporates a company in India then it is an Indian Company. But when a foreign company set up a branch office in India then it is known as Foreign Company.

Foreign Direct Investment (FDI)

The amount/capital to be invested by any foreign national/NRI shall be classified as FDI in India. In 1990s, there was high number of restrictions on FDI in India where as today, there are amendments in all the rules and regulations of company formation in India.

Read More :- Company Registration in India

FDI is classified as

    Business where FDI is not allowed at all.
    Business sectors where permission is required from Foreign Investment Promotion Board(FIBP)
    Business where no permission required.

All foreign nationals/ NRI’s must go through FDI policy before company incorporation in India in order to check any restrictions, prohibition in the proposed business activity

Entry Strategy into Indian Market

A foreign company can commence operations in India by incorporating a company under the companies Act, 1956 through registration of company or establishing a branch or liaison office.

Establishing a private limited company is the easiest and fastest way to set up in India. FDI of up to 100% into a public limited or private limited is permitted under the FDI policy wherein no approval from RBI or central government is required. For the purpose of registration or incorporation, an application has to be filed with Registrar of companies (ROC). For more information please visit http://dca.nic.in.

Other entry strategy as a foreign company is to open a branch office, liaison office and Project Office. In this case, approval from RBI or central government is mandatory. Therefore, the time and money required for setting up a private limited or public limited company is much less than forming such offices.

Requirements for incorporation of company in India

In order to start a company in India, a minimum of two persons and an address are required in India. A company must have a minimum of two directors and   a minimum of two shareholders. According to Indian rules and regulations, one director must be both an Indian citizen and Indian resident.

One should establish a company with three directors which includes two foreign nationals and one local citizen. In this case, 100% of the shares of the Indian company can be held by foreign nationals/ NRI. The address in India is served as the registered office of the company.  Foreign companies establish their offices in metro cities like Delhi, Bangalore, Mumbai and Chennai etc.

Cost for company registration in India

Company formation services in India are inexpensive. The company formation process can be completed within few weeks. The incorporation process can be easy with the help of tax advisors in India. It would cost you some pennies but the whole process will be easy for you.

Read Original Article here: http://bit.ly/2hSzbw7 

Deposit in bank accounts of political parties exempt from tax

The government has said political parties depositing the demonetised Rs 500 and Rs 1,000 notes in their accounts will not face income tax investigation. 

"If it is a deposit in the account of a political party, they are exempt. But if it is deposited in individual's account then that information will come into our radar. If the individual is putting money in his own account, then we will get information," revenue secretary Hasmukh Adhia told reporters. 

The Section 13A of the Income Tax Act, 1961 grants exemption from tax to political parties in respect of their income from house property, other sources, capital gains and income by way of voluntary contributions received from any person. 

Read Also:  How to register your own company in India?

Adhia was replying in response to a question whether the government is also investigating political parties/political treasuries depositing their own cash in banks. 

This came on a day the government gave tax offenders a last chance to come clean.

The exemption in respect of contributions is available only when in the case of all voluntary contributions in excess of ten thousand rupees, such political party keeps and maintains a record of such contribution and the name and address of the person who has made such contribution.

Read Also: How foreign nationals/NRI’s can setup a business in India[Overview]?

This mean anonymous contribution cannot be more than Rs 20,000. Farmers exempt from tax on agricultural income will need to furnish a self-declaration that his earnings are less than Rs 2.5 lakh in a year to make deposits in bank without PAN. “We will not go unnecessarily after those with Rs 2.5 lakh deposits. But where we find people have tried to misuse the provision by putting in multiple accounts in different banks (we will go after them),” Adhia said.

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How to register your own company in India?

There is only one method of getting legal existence for your start up that is company registration. Before registration, your start up can be a sole proprietorship or partnership but after registration, your company takes a life of its own and become a registered entity. It can be closed only by legal intervention. It is long and tedious procedure to registering a company on both of your packet and on your own time, if you want to do it yourself. There are more advantages and very less disadvantages for you.

Rules of Private Limited Company

• Minimum two shareholders and two directors are mandatory.
• Directors/Shareholders cannot transfer their shares as per article of association.
• General public cannot purchase shares of company.
• Maximum number of shareholders should not be greater than fifty.
• Deposits is allowed only from the member and directors(or their relatives).

Register your company

Update- Ministry of Corporate Affairs(MCA) has introduced a new form INC-29 through which a new company can now be incorporated. The newly introduced form known as Integrated Incorporation Form INC-29 will combine the procedure for getting Director Identification Number(DIN), Name Approval Application and Incorporation Application into a single step.

If you have some time and you want to save some money from your end by getting company registration done yourself then follow these simple steps:

1.) Apply for DIN(Director Identification Number) and DSC(Digital Signature Certificate

• Website: http://www.mca.gov.in/MCA21/index.html
• Amount: For DIN - Rs. 100 and for DSC – Rs. 400-2650(more details- http://www.mca.gov.in/MCA21)
• Time Duration: For DIN 1 Day and for DSC 4 Days

2.) For company name approval and get certificate of incorporation

You have to fill four forms in order to complete these two tasks. First apply for company name on FORM 1A and wait wait for the company name approval from ROC(Registrar of Company) and then apply for certificate of Incorporation by filling FORM 1, Form 18 and Form 32.

• Website: http://www.mca.gov.in/MCA21/Regi...
• Amount: For company name approval Rs. 500, For Certificate Rs. 4000 – 10000
• Time Duration: For name approval 2 days and for certificate of incorporation 7 days.

3.) This is an offline procedure for the completion of second step. You have to attach scanned copies of these documents with the FORM 1 to get the certificate of incorporation:

• Attach consent letters of Directors of the Company with the copy of form 32.
• Signed and stamped copies of the Memorandum of Association(MoA)(Rs. 200)
• Signed and stamped copies of the Articles of Association(AoA)(Rs. 1000 - Rs.4000)
• Power of Attorney from subscribers on judicial stamp paper of Rs. 100
• Identification of subscribers.
• It must be attached with FORM 1 mentioned above.

These documents sent to registrar and then stamped and signed and sent to the concerned registrar office.

4.) Apply for the PAN(Permanent Account Number) and TAN(Tax Account Number) for your registered company.

• Website: https://www.tin-nsdl.com
• Amount: For PAN – Rs. 94 and for TAN – Rs. 62
• Time Duration: 7 days

It would take merely 40 days for you to register your own company. You have to complete some other tasks but you can start your business operations after getting certificate of company registration. You can also take advice of professionals for the same. It can save your time and money both.

About the Author:

AJSH & Co LLP. primarily operates from its head offices located in New Delhi, India and Gurgaon, India and has associated members working across India and in USA. Our aim is to provide best quality consultancy service at affordable prices to cater the specific requirements of our clients located in India as well as abroad.

AJSH & Co LLP. has a team of highly qualified and dedicated professionals comprising of Chartered Accountants, Company Secretaries, Certified Public Accountants (CPAs), Lawyers, MBAs etc. specialized in providing professional advisory services on setting up business in India including company formation, various forms of foreign direct investment, setting up partnership firms, project offices, branch offices and all other form of entities required to do business in India.

Please feel free to email sales team at E: ankit@ajsh.in, also reachable on Direct numbers or + 91 9810661322. Please feel free to visit at http://www.companyformationsservices.com

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Selling property? Expect a letter from the income tax department

When you sell a property next time, expect a letter from the Income-Tax (I-T) department, asking you to explain when you acquired it and the source of funds. This could be one of the ways the government could zero in on benami property holders.

Lawyers say that earlier it was usual practice by the department to call buyers to explain sources of funds whenever someone purchased a house. It’s possible, the department can now call sellers, too.

After the Income Declaration Scheme (IDS), 2016, demonetisation and giving another chance to black money hoarders to deposit cash and pay a penalty, the government is expected to go after   people with many properties. In a speech in Goa on November 13, Prime Minister Narendra Modi had said benami properties are next on his radar to eradicate corruption and black money.

Be cautious when helping relatives

A benami property means  assets are held by a person but the consideration for these has been paid by another. There are, however, exceptions. You can pay for a property that’s entirely in the name of your spouse or children. But, you cannot pay for a property that will be in the name of your siblings, parents or any other lineal ascendant or descendant, unless you are a joint owner. That applies even if the money is legitimate. But, there is a way out. Tax experts say an individual can buy the property in his name and later gift it to the close relative. It will be more expensive as the person will need to transfer the ownership through a gift deed and pay stamp duty.

If the property is held by a ‘karta’ of a Hindu Undivided Family and individuals who have fiduciary responsibility such as trustees, executors, partners, directors of companies and others, the asset will not be considered benami.

Under the Benami Transaction (Prohibition) Act, ‘property’ has been defined comprehensively to include not only immovable assets such as land, flat or house but also movable assets such as gold, stocks, mutual fund holdings and even bank deposits. One significant change is that it covers the conversion of the property, which was not covered in the old law. If the property is sold, then the proceeds from it are also considered benami.

The government knows

Real estate is the biggest area where many channel their black money. This is done using various methods. Property is bought in the name of close relatives or even servants or drivers to evade detection by tax authorities. “Typically, individuals with black money buy large tracts of land that can be developed in the future or they buy high-end properties,” says Amit Oberoi, national director, knowledge systems at Colliers International (India). While there’s no exact figure on the number of benami transactions, experts feel that it would be 25-30 per cent of all high-end propertysale. In the case of land, it could be higher.

To tighten screws on such transactions, the government has taken many initiatives and is sitting on a huge data repository. Explains Neha Malhotra, executive director at Nangia & Co: The Centre has revised norms making it mandatory for an individual to quote the permanent account number (PAN) on several high-value transactions, annual information filing is required by financial institutions and property registration has been made more stringent. There is also financial information sharing treaties with other countries. “It’s difficult for big transactions to go unnoticed,” says Malhotra. In fact, the department will soon be scanning social media posts of individuals. That’s part of the I-T department’s Project Insight programme. 

Based on the information and data available, the government can mine high-value transactions. Suppose someone has bought a property worth Rs 5 crore in his servant’s name and this propertygets shortlisted in the search. The tax authorities will then look into the ‘benamidar’s’ (servant’s) income sources to ascertain whether he can afford such a purchase. Once that possibility is ruled out, they will set out to find the actual owner.

Many tax and legal experts feel once the demonetisation drive ends, the I-T department will start sending notices to benami property holders, based on the data it has. After closure of IDS, the window to declare benami properties and other unaccountable assets is closed. The only way forward for property owners is to pay the fine. Else, they can also face imprisonment. Apart from awarding imprisonment of up to seven years to the beneficial owner and the benamidar, others involved in the deal, too, will not be spared. A fine of up to a fourth of the market value of the property can be imposed on all parties.

Law gets more teeth

In the previous version of the Act, the Centre was supposed to issue a separate notification on the authorities that would initiate action and how the different parties will be dealt with. It didn’t happen, according to legal experts. Explains Sharanya Ranga, partner at Advaya Legal: The amended Act lays down the entire process of bringing down different parties involved in ‘benami’ property to book. It names different authorities — the initiating officer, the approving authority, the administrator and the adjudicating authority — which will handle the cases. Officials of the income taxdepartment will be the main authorities handling benami property cases. 

The Act not only prescribes punishment for the beneficiary of benami property but also for the person who holds the title and any other parties involved.


Read Original Article: http://bit.ly/2gvIsbc

If you have any queries regarding company formation in india then feel free to contact us:

AJSH & CoW: www.companyformationsservices.comE: ankit@ajsh.in Contact: +(91)-11-45596889 

How Foreign Nationals / NRI’s can setup a Business in India [Overview]

The article primarily provides an overview about the regulatory aspects for setting up/ incorporating business in India by Foreign nationals / NRIs in light of the changed regulatory environment in the past few years. It aims to cover areas related to Foreign Direct Investment (FDI) policy and RBI Circulars, Companies Act, 1956 for Indian as well as Foreign Companies.

At the outset please note that the term ‘Indian’ or ‘Foreign’ companies do not necessarily denote ownership. It merely denotes the place of registration. Thus when a foreign national incorporates a company in India, it is indeed an Indian Company. But when a foreign company decided to set up only a branch office in India, it is termed as a Foreign Company. We shall see more of that later on.

What is Foreign Direct Investment (FDI)

It is to be noted that the capital to be invested by the Foreign National / NRI shall be classified as ‘Foreign Direct Investment’ (FDI) in India. Before the economic liberalisation in India in the 1990s, there were a high number of restrictions for FDI in India. Gradually, the restrictions have been watered down to a great extent and currently the restrictions are in place for only those business activities that are strategic to the interests of the country or are politically sensitive issues such as Retails trade, Defense, Telecom, Real Estate etc.

Thus today, FDI is classified into:

1. Business sectors where FDI is not allowed at all
2. Business where prior permission is required from the Foreign Investment Promotion Board (FIPB)
3. Business where no prior permission is required.

Please note that in all case, once the FDI is received and accepted by the Recipient Company, an intimation is to be sent to the Reserve Bank of India(RBI) in Form FC-GPRS within a month of allotting the shares to the foreign shareholder.

Thus the first place for any foreign national or any Non-Resident to look out for is the FDI policy. He has to first understand if there are any restrictions, prohibitions in the proposed business activity and then move forward to the company formation process.

Note on Foreign Investment Promotion Board (FIPB)

Now let us talk in detail about the FIPB process. The FIPB is the high level body which approves investments which require prior approval through a single window clearance system. The FIPB has some of the topmost officers and secretaries as its members.

An online application is to be made and when the case is put up for discussion, the investor or his appointed professional can make a presentation. Please note that the FIPB is a highly transparent mechanism and it is indeed very fair to the investors.

Once a person is clear with the FDI rules applicable to the proposed transaction, then he can decide on the nature of business entity that he wants to set up.

Types of Entities

The next question that is to be asked is the type of entity to be formed in India. It can be noted that FDI is not allowed in India in the form of sole proprietorship or partnership businesses except that NRIs are allowed to do so on non-repatriable basis.

However it may not be advisable to opt for that route. Also, FDI is not allowed in trusts and non-governmental organizations except that of Venture Capital trusts. The options that remain are individually discussed below:

1. Liaison office:

This is most suitable for companies who neither have nor see much of a presence in India. Liaison offices are extremely restricted in what they can do and are mainly set up as a communication medium between the Foreign company and its existing customers in India. A Liaison office can’t solicit customers nor indulge in any form of promotion. They can’t carry out business operations in India. At the cost of repetition, their role is merely to act as a communication medium between the Foreign Company and the existing Indian customers.

Because of its limited role, the compliance to be completed by a Liaison Office are the least. The biggest advantage is in income taxes where the provisions of Permanent Establishment and Transfer Pricing may not be much of a concern since the Liaison office does not earn any income as such.

2. Branch Office:

This is the next step towards a full fledged branch business presence in India. A branch office in India can execute most of the tasks that a Limited Company can execute except manufacturing. A Branch Office acts as a branch of the foreign company, be its permanent establishment under the tax laws and can earn income from business operations. Recently the RBI has tightened the norms regarding who can open a branch office in India. One of the criteria is that the Foreign Company intending to open a branch office in India should have a track record of at least 5 years of profit making.

3. Project Office:

A Project office is like a temporary branch office set up for a particular project.

4. Limited Companies:

A Limited company can have a full fledged presence in India. Unlike the previous three entities which are technically called as Foreign Companies, a subsidiary company is called an Indian company. The compliances are also greater than a foreign company.

5. Limited Liability Partnership (LLP):

Recently the Government has allowed Foreign Direct Investment through Limited Liability Partnerships (LLPs). However the policy change seems to have been made for name’s sake and the conditions that accompany the investment in LLP have been made very stringent. For all practical purposes, one needs to wait for further clarity. Till then FDI in LLP shall be advisable only for a very limited set of investment proposals.

• First thing to note is that FDI will be allowed only in those companies where 100% FDI is allowed through the automatic route and there are no FDI-linked performance related conditions.
• Automatic approval route means no prior permission from the Government/ FIPB is required. FDI-linked performance related conditions meant that in sectors, where conditions like minimum capitalization, compulsory disinvestment after a few years etc are prescribed; even though 100% FDI is allowed under automatic route, LLP’s will not be allowed to bring FDI with the approval of Government of India.
• No FDI shall be allowed in agricultural/plantation activity, print media or real estate business.

Procedures to setup a Branch, Liaison or Project Office in India

Now let us talk in detail about the procedure to set up a branch, liaison or project office in India.

1). The first step is to approach the Reserve Bank (RBI) of India for permission to do so. The documents that are generally required are Parent Company’s Annual Report for last three years, Certificate of registration, License, Power of Attorney attested by the Indian embassy in the home country, Board Resolution, reason for setting up an office in India etc.

2). If the RBI is satisfied with the above documents, then it gives a letter of approval .Kindly note that the approval letter from RBI may contain some conditions and which are to be observed in the strictest sense. The permission may be for a particular time period , generally three years.

3). Once the permission from the RBI is obtained, then the permission is required from the Registrar of Companies in a single form along with payment of the requisite fees.

4). The entity is known with the extension of the particular office. For example, the branch office in India of ‘ XYZ Inc.’ would be known as XYZ Inc. India Branch Office.

5). One important thing to be noted is the appointment of an Authorized Signatory in India. He shall be responsible for all the compliances of the Foreign Company in India.

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If you have any queries regarding company formation in india then feel free to contact us:

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Procedures of Starting a Company in India

The word 'Company' is originated from the Latin word 'Com' meaning "with or together" and 'Pains' meaning "bread". So, originally, it referred to a group of people who dined together. Starting a company requires a lot of planning and activities and more than that a number of formalities needed to be complied. The details  on the procedures and paper works related to starting a company in India are as follows.

Following are the types of business entities in vogue in India:

• Private Limited Company
• Public Limited Company
• Unlimited Company 
• Partnership 
• Sole Proprietorship 
In addition to the above, for foreign investors and companies can form: 
• Liaison Office / Representative Office
• Project Office
• Branch Office
• Wholly owned Subsidiary Company 
• Joint Venture Company

The choice of entity depends on the concept and requirements of the entrepreneurs ranging from a sole proprietorship to a public limited company with many formalities.

Proprietorship and Partnership Firms

Registration is not required for a sole proprietorship entity. But if you are liable for state VAT or service tax registration, you need to obtain VAT / service tax registration. For sole proprietorship, separate income-tax / PAN is also not necessary. The PAN of the proprietor can be the PAN of the firm and proprietor and it can be in personal name also.

For partnership firms also, it is not necessary to register with the Govt. in most states of the country. It is almost compulsory in Maharashtra. Please check the laws in your state to confirm.)

But, if you are not registering your partnership firm, you cannot hire legal protection in the disputes between partners. Even if you choose not to register your partnership, always prepare a Partnership Deed which will help to resolve problems in case of disputes between partners. Partnership Deed can be prepared by any lawyers and can be made on stamp paper as per the laws of the place of execution.
For registration of a partnership firm, partnership deed needs to be prepared along with an application form in the required form and both should be submitted with supporting documents at the nearby “Registrar Of Firms” office for approval.

Procedures for Company Registration

Before starting a new company it is required to register with the Registrar Of Companies ( ROC ) which is under The Ministry of Corporate Affairs (MCA), Government of India. There will be penalties for failures in making returns. For a public limited company, all details of the company are available for public inspection so there can be no secrecy. As the director, you will be treated as an employee and is entitled to pay tax.

As compared to a Public Limited Company, Private Limited Company has less agreement constraints. Private Limited Company is the best choice when there is no need of elevating investments through a public issue and the proprietorship is projected to be strictly owned by limited number of persons.
The minimum paid up capital at the time of incorporation of a private limited company is Rs 1,00,000/- and there is no upper limit on having the authorized capital and the paid up capital. This can be enhanced at any time by making payment for additional stamp duty and registration fee.
Procedures.

The first step in company registration is submitting an application in Form No. 1A with the Registrar of Companies (ROC) in the concerned state in which the Registered Office of the proposed Company is / to be situated.  The application is to be signed by any of the promoters.

The following details are to be detailed in the application:

1. Four optional names for the proposed company. The proposed names should be indicative of the main objective of the company. Justification for the name also needs to be specified along with the application to take proper care for 'same or deceptively similar names'
2. Names and full addresses of the promoters (Minimum 7 for a public company and 2 for private company).
3. Authorised Capital of the proposed company 
4. Proposed company objective.
5. Names of other group companies ( if any ).

The ROC scrutinises the same and issues an approval letter/ objection within 10 days to the applicant. On receiving the name consent letter from the ROC, the second step is to draft and submit the following credentials before the ROC within six months of the approval.

1. Memorandum of Association (MOA) and Articles of Association (AOA) - These are required to be executed by the promoters in their own hand in the presence of a witness in quadruplicate stating their full name, father's name, residential address, occupation, number of shares subscribed etc. The MOA states the chief, auxiliary and other items of the proposed firm while the AOA incorporates the rules and guidelines of the standard conduct of the firm.

2. Form No. 1 – Form No.1 is a declaration to be executed on a non-judicial stamp paper of Rs.20/- by one of the directors of the proposed company or others like Attorneys or Advocates. It states that all the requirements of the incorporation have been complied with.

3. Form No. 18 - This is to be filed by any of the company directors notifying the address of the registered office of the proposed company.

4. Form No. 29 - This is a consent obtained from all the directors of the proposed company to act as directors of the proposed company. (Not required for pvt ltd company).

5. Form No. 32 – Form 32 states the appointment of the proposed board of directors from the date of incorporation of the company and is signed by any of the acting directors.

6. The name approval letter in original.

7. Power of Attorney signed by all the subscribers of MOA assigning any of the subscribers or others to act on their behalf for the incorporation and accepting of the certificate of incorporation.

8. Power of Attorney in case of subscriber who had appointed another person to sign the MOA on his absence.

9. Filing fees as applicable.

When all the documents are filled and submitted, ROC scrutinizes it and makes corrections if any. On complying with the same, the certificate of incorporation of the company will be issued.

Additional Compliance Required for Public Limited Companies

A Private Company can start its business immediately on incorporation. Public Company has to complete certain legal formalities such as a statutory meeting within 6 months from incorporation, statutory report etc. On completion of the said formalities and on filing of the statutory report with the ROC, the ROC issues a Certification of Commencement of Business to the company. A Public Company can start their business operations on receiving the Certificate of Commencement. 
After the Company has incorporated, if required alternate directors can be appointed, to function on your behalf while you are outside the country. But you should be in India within one month of the incorporation of the Company at least once.

Every public limited company should appoint a qualified auditor. The auditor's duty is to check and report to the treasurer about the books of the company, the balance sheet, profit and loss account etc are a true and reflects a fair view of the company's affairs and also its compliance with the Companies Act. Auditors are appointed or re-appointed at general meetings at which annual accounts are presented, and they hold office from the conclusion of the meeting until the next general meeting.

Companies Act lays down strict rules on accounting that all companies are supposed to maintain a set of records, which reflects the financial position of the company with accuracy. A company's first accounting period begins on its incorporation until the following financial year ending (31st March). Within ten months of the end of an accounting period, an audited set of accounts must be laid before the shareholders at a general meeting and a set delivered to the registrar of companies.

In addition to the accounts books, companies are required to have the following registers:

• Register mentioning its members and share ledger
• Register of directors and secretaries
• Register of share transfers 
• Register of charges
• Register of debenture holders

All companies must have and use engraved seal. It must be impressed on share certificates and should be used whenever the company needs to execute a deed. Again, it is included in the ready-made company package.

If application for registration is done through internet with e-forms, everything should go with the digital signature, requisite fees and also the hard copy of Memorandum and Article of Association should reach to the RoC.  Many problems which earlier related to registration of a Company in India have been substantially cut down with better and user friendly processes.

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What is the skill of Entrepreneurship all about? Why startups are emerging like never before?

Following the suit of the 9am-5pm job becomes inevitably mundane over the period of time. While some learn to adjust and mould themselves accordingly, some breakthrough and opt for entrepreneurship. However, even if there are 100 individuals who decide to take the route of entrepreneurship there are merely 50 that succeed. Even though there are numerous external factors such as idea, market, competitors etc influence the stand of the start up yet there is one skill that affects everything majorly. The skill is known as – Entrepreneurship.

You may read a hundred thousand articles a day on entrepreneurship that shall guide you through the thick and thins of the business, however, what matters is that ingrained skill which nobody teaches you but you can learn it.

1.    Hocus Focus – A keen eye on detailing and an outstanding focus is the first key feature of the broader skill called entrepreneurship. An entrepreneur must make it a point to keep his focus upright. A 360-degree dedication and devotion lead to the favourable fruits. Whether your personal life is unhealthy or any other issue that is troublesome, there is no excuse to lose out upon focus especially when you are an entrepreneur.

2.    Managing people – One of the toughest tasks an organisation faces is to manage their people. While managing machinery is much easier, managing human is a feature that requires knack over understanding and a blend of compassion, empathy along with logical approach. If you as an entrepreneur make the employees feel as if they are an integral part of the organisation (which they obviously are) your half the battle is won already.

3.    Enthusiasm to learn – Even when you reach the top of the world there are still things that are left to be learnt. Numerous of us do not understand the significance of acquiring knowledge over money. Being an entrepreneur you must discern the importance of learning. Your every move, each failure, every day teaches you something or the other which might turn out to be advantageous 5 years down the line. Hence, never stop learning. Never. Ever. Ever.

4.    Regulating stress – There are times when stressful situations refuse to end and in such times only the ability to withhold yourself with patience is going to work in your favour. Every day is not a day of sun, there are times when it just rains with no sunshine around the corner and yet you should keep your plans preceding.

5.    Adaptability – Countless start-ups fail to mark their existence for longer simply because their inadequacy of matching with the volatile demands of the market. When the entrepreneur meticulously and briskly digs through the market researchers keeping its eye on every new trend it becomes uncomplicated to adapt. Being rigid to own ideas without adding the pigment of flexibility can lead you nowhere in the long run. A sheer balance between originality and adaptability has to be established.

As I was scrolling through the job portals I figured that in the clutter of big corporate and mediocre sized organisations there is a mushrooming trend of start ups. While some start ups do own a small place called office others merely operate virtually but that is not the point of discussion here. With the number of employees ranging from 2-20, these start ups, needless to say, are doing wonders in their own arena.

If we take advertising world, without a doubt Lintas, Ogilvy are some of the well established names that has earmarked their paces followed by other small agencies. However as the start up trend is taking its flight an arrangement of couple of copywriters, a couple of graphic designers, a client servicing executive, an accountant and one or two more people are sufficient to take a shape of startup advertising agency.

On dissecting the problem with our corporate work culture I believe there are multiple layers that turn out to be the influencing factor. However, what majorly makes an individual incline towards start up is the flexibility and space for experimenting. Being under the surveillance of corporate culture even the most capable and creative mind faces the lack of experimenting. On the contrary when an individual opens his or her own start up they can invest the same amount of energy that they used to put in their respective jobs and create something that they would call their “brainchild”

Another reason that was gauged through observation is the returns. It is not an unknown fact that monetary returns are pretty much higher when you own a start up in comparison with your slogging 9-5 job. But, here the non-monetary returns are much higher. When you work in the company shedding your blood and sweat only to see your managers taking the credit for everything that you have done you boil down to the point that putting efforts in a start up can certainly provide your non-monetary returns at a much higher level. The sense of fulfilment of being able to shape something that is “yours” is worth the perseverance you put day and night.

On the contrary, however, it is worth scanning that setting your foot in the startup trend is going to be much more demanding that your normal job. A life of an entrepreneur certainly is everything that his or her start up is. You cannot afford to take a break or move out of the focus for a period of time. You have to be there with an imperishable passion day in and out.

The startup trend is definitely a positive sign that is in a way contributing to the economy of the nation. With numerous of individuals eventually starting something of their own if are quite evident that being a nation we are the pool talented minds that are well versed with the ways of carefully channelizing it in the right direction.

Being an entrepreneur is ten times more demanding than your 9am-5pm job because here you are the master and the slave both.

Original Source: http://bit.ly/2gS2cK5