Choosing the right business structure for business ideas with low investment

In this article, Mansi Agnihotri discusses Choosing the right business structure for business ideas with low investment.

Business ideas with low investment

For all the entrepreneurs the biggest challenge is to accumulate the FUNDS. Well for all those who are looking forward to starting a business and are running short of money don’t lose hope, because today’s market provides a vast variety of opportunities to occupy a good market. Because it is proven that ideas are powerful so you can opt for those ventures which are more skill based rather finance. So here is a list of idea’s which you may use to tag yourself as an entrepreneur.

Most Common Business structure for business ideas with low investment

It would be ingenious to first determine the business structure before starting with an idea. So basically there are four types of business entities, one must select the type with due care and caution because based on your decision, you will be liable for the various taxation policies, liabilities etc. so be very diligent in opting one of it.

Note: Please refer to the business structure as aforesaid provided. You may take up any below-mentioned idea taking into the consideration the suitability in regard to the business structure and various other factors such as future prospects, consumer demand etc.

Fitness instructor

Looking at the severe healthcare problems, there is a huge requirement of boosting the health of the public. Apart from the public and private healthcare centers which are flooded with patients, people are rushing towards the preventive methods which are to keep yourself healthy. Therefore there is a huge need in the market for physical exercise

Yoga

Well if you are trained in yoga and have been practicing at home then why to keep such a knowledge within yourself, you have an option of facilitating such a service to the public. The best part is that you don’t need huge funds unlike the other areas of business.

 STATUTORY REQUIREMENT

• AYUSH ministry to certifies the institutes imparting training in ancient discipline for the physical and mental well being to ensure the quality check and control the mushrooming of the of centers which do not even meet the basic standards. That means you need a certificate.

• Apart from the certificate of incorporation, the yoga center would require a service tax registration i.e. if the turnover is above 10 lakh you need to pay service tax.
• Franchise: you can opt franchise of various organizations such as Arhanta yoga etc, which provides good opportunities. Here the advantage is that the business model is already tested and the goodwill of the well-established yoga studios will help you in gaining customer’s attention.

NOTE: It is recommended to start the yoga centers as the limited liability partnership or a company to ensure that the investment of rental deposit and the interior can be transferred to another person in future.

Gym

A gym is a good option, so if you can spend a bit more. Though the initial investment is bit high, looking at the accelerated demand you will very easily be able to regain the invested capital amount.

STATUTORY REQUIREMENT

• As per the Gymnasium and fitness center regulation bill, 2017 the appropriate government shall by the notification in the official gazette appoint a competent authority who shall after proper examination shall issue a certificate to the owner. The owner is required to renew the registration.
• Ensure that the trainers you hire possess the professional certificate from the renowned institute such as GOLD GYM FITNESS INSTITUTE, INDIAN INSTITUTE OF FITNESS TRAINING etc

Franchise

• You can also take up the franchise and work in accordance with the agreement. An Organisation such as Gold Gym, Universal gym, the great Khali gym provides franchise. There are various advantages of opting a franchise such as:
• The risk of business failure reduces because the business model is already tested and has recognition in the market.
• The customer is aware of the quality of the services provided.
• Since the brand name and trademark is already established there is not much requirement in investing in the advertisement.
• The franchisor imparts the training to the franchise to ensure quality check this helps the franchise in learning various technical tactics which generally comes with the experience.
• The banks tend to lend money easily to the franchisees.  
• However, sometimes, the franchise takes a high amount of franchise fees.
• Take insurance policy to reduce the effect of any contingency.

 Online fitness service

The internet is one thing which is common throughout the word, therefore you can use this service and make your business accessible to all. In this not only you will be able to expand the market share, in fact, the good part is that you don’t need much of the financial resources.

• For the purpose of data protection ensure the regulation of the cyber laws.
• Make sure the domain you select is not violating the trademark laws
• Copyright laws: A website is a combination of several copyrightable works like the design, graphic art, logo, program, and content, etc. In India, copyright office does not offer the website registration services, however at the time of domain name registration, the websites get automatically protected. However, the copyright doesn’t provide protection for the entire website rather only over the components which incorporate the skill and efforts of the individual.

Tuition centers

Another thriving pursuit is coaching centers. We all are aware how fruitful this is. So if you are interested in teaching and you think that you have good teaching skill then you can reward your skills by opening a coaching center. Rest lies with your skill, how smoothly can you impart knowledge to your student.

STATUTORY REQUIREMENT

• All businesses need to be registered under the Shop and Establishment act, this has to be done within a span of a month from setting up the business subsequently a statement has to be sent to the inspector enumerating various requisite details. The processing fees start from RS 125 to 12,500 depending upon the manpower the applicant is employing. Once the inspector is satisfied with the details he will issue the license. Obtain a trade license from the competent authority as provided by the government by fulfilling all the requisite formalities.
• You can register your coaching institute as a company/private limited company or a partnership firm.
• You need to open a current account in your name or in the name of your coaching in any nationalized bank.
• Indian government needs you to pay service tax if the turnover is more than 9 lakh, therefore you need to register for service tax.
• You may look into the details on registration of tuition center.

NOTE: it is recommended to opt for a sole proprietorship or for partnership.

Youtube channels

This seems to be the fascinating option. You can register your channel on youtube and thereafter you can convey your skills to the viewers. Now here no one can define the limits or ambit of the talent which you can capitalize it can be acting, comedy, singing, education, cooking etc. so if you think that you can attract the viewers you can make videos and upload it.

Statutory requirement

• Copyright laws: To deal with the copyright issues and to ensure the protection of rights of the content owner (composers and others, publishers in our case) Youtube has developed YOUTUBE CONTENT_ID which scans the uploaded videos against the database of audio and video submitted by the copyright owner to the youtube. The content_id matches the content with the database and sends a copyright notice communicating to the third party that the third party content has been identified in the video. In this event, Youtube further proceeds with :
• Blocking or removing the video
• Muting the audio
• By running a third party add over the video to monetize the content used in the video and compensate the content owners for the use of the content

However, if you obtain a license from the licensing company or directly from the content owner you can upload the video , but because the youtube Content_id is not advanced enough to automatically determine the licensor , otherwise learns that there lies a license agreement between the uploader and the content owner so there might receive the notice, nevertheless the channel can prove its legitimate use and wind up the dispute.

• Licensing: there is no statutory requirement for obtaining the trade license.

NOTE: sole proprietorship and partnership will suit the most.

Travel guide

For those who love travelling and are acknowledged with the details of the places, you may work as a guide and may do wonders in it.

STATUTORY REQUIREMENT

• For the purpose of the regional guides, the ministry of tourism, the government of India conducts the courses through Indian Institute of tourism and travel management.
• For the part-time guide, you need to go through 8-month special training.
• There is an acute shortage of guides acknowledging various languages such as French, Spanish so you can learn these languages in order to flourish the prosperity of your business.

NOTE: sole proprietorship and partnership will work best for this idea.

Blog

If you think that pen is your weapon then you may try your hand at writing. Here your imaginative skill will help you the most and because imagination has no end and therefore you can reach till infinity.

STATUTORY REQUIREMENT

• Though you do not need to furnish any legal framework revolving for the purpose of registration of the blogging site.
• You need to create a WordPress and register_the_domain_name. Make sure the domain name which you choose is not violating the trademark rights of the person.
• Copyright: Copyright act is applicable in regard to the literary work. Therefore the writer must take into consideration whether the write up is plagiarized or original. The law doesn’t grant the protection of the idea imbibed in it but one may claim the protection of the intellectual labor imposed by him. Therefore one may pick up an idea but he must not try to duplicate the existing content of which he is not the owner.

Note: sole proprietorship and partnership will be advantageous.

Event management

If you think that you have the amplitude of time management and multitasking then you can choose this as your career option. Here you don’t need funds because the capital is your skill. It is about how well you manage every requirement. You also need to be a good manipulator, because here you will have to convince a lot who may be your clients or the suppliers.

STATUTORY REQUIREMENT

• It is obligatory to get the entity registered as per the norms laid down by the legislation.
• You can register it under companies act if it is a company, or under a shop and establishment act if it is an establishment and under a partnership firm if it is a firm.
• In regard to the company one needs to obtain a PAN card for filling the income tax return and TAN card for filling the TDS return.

NOTE: partnership will prove to be advantageous. A Sole proprietorship may also be beneficial.

PROGRAMER

If you think that you can do programming that you can serve this as a product. programming is required for developing applications, website etc. it is in huge demand therefore if you have the caliber then you can start with it.

Statutory requirement

Copyright laws – The Copyright Act, 1957 grants protection to original expression and computer software is granted protection as a copyright unless it leads to a technical effect and is not a computer program per se. The computer software which has a technical effect is patentable under India Patent Act, 1970. However, if the computer program does not have the technical effect is protected under the copyright act. For the copyright protection, the computer software needs to be original and must have the element of one’s own skill and efforts.

NOTE: sole proprietorship or partnership will be profitable.

Stall

Well if you think that that you have the magic in your hands and you can cook mouth watering and finger licking food then you can commercialize this skill of yours by employing low finances. You can buy a stall and kick-start your business. Food stalls are one of the most amazing low investment business and truly have the valor of grabbing the market. You can buy food truck as well (a large vehicle equipped to cook and sell food).

You can open a tea stall or any food item which may be Indian, Chinese or Italian. Because here you aren’t required to employ huge fund in buying a building and making other exorbitant arrangements. You can provide the same food item at cheap rates which are very attractive in catching the customers. But make sure that you place your stall at the permitted place.

STATUTORY REQUIREMENT

• Obtaining a trade license is imperative under the shop and establishment act for running all eating establishment such as restaurants, hotels, canteen, food stall etc
• Different states have different norms if the vendor fails to comply with the norms as enunciated, then the competent authority has the power to cancel or revoke the license.
• One need to send all the required documents to the food inspector (chief inspector or any other inspector) along with the fees, who shall conduct the inspection.
• Once the application is accepted the registrar shall record the name in the register of establishment
• If the vendor shuts down the business he needs to inform it to the registrar within 15 days who shall further update the changes in the register of the establishment.

NOTE: Sole proprietorship and partnership will suit the best.

Consultant

Consultants job comes in every shapes and size. In general, the consultant provides a suggestive outlook to the individuals and organization. The job of consultant though remains the same however the field may change. One may provide service in different domains such as education, healthcare, business, IT sector etc.

Like we have

a) Investment consultants – They are expert in the field of finance. They suggest investors with investment products, planning, and advice.

b) Psychological consultant – They generally work with the organization, non-profit organization, in consulting firms or in private practice. They help these organization to bring them back on track.

c) Healthcare business consultant – They provide various advice to the healthcare administration, and management such as billing, accounting, financing, marketing, and insurance.

STATUTORY REQUIREMENT

• There are different standards for different types of the consultant, in some, it is required to obtain a special certificate and special license before you begin to operate as a consultant. Such as fundraising consultant do not any special certification, although they can get certified through the national society of fundraising executives.

NOTE: Sole proprietorship and partnership will be beneficial. As you can join hands with people who are a consultant in other fields.

Photography

We cannot neglect this profession when a business with low investment is in question. It seems to be one of the most exciting and remunerative vocations that one can opt. Anyone who can show his creativity by clicking the picture which would give it an extraordinary view.

STATUTORY REQUIREMENT

• Copyright: Photographs are protected under the law of Copyright as it has been included as an artistic work. Although, the quality is immaterial to qualify the work as an artistic work [so a bad photograph is still protected under the law]. The essential element to protecting the copyright in artistic work particularly a photograph requires that the photograph must be an original work where some degree of skill and effort must have been expended on it.
• It is pertinent to mention that the copyright in photographs is for 60 years, and after the period lapses the photograph falls in the public domain. Therefore one must pay attention to it.
• After staring up professionally one must ensure that he pays the income tax in accordance to the slabs as provided in the income tax act 1961

NOTE: Opt for a sole proprietorship or you can also form a partnership firm.

Graphic designer

Graphic designing is the profession where you assemble the images, typography or motion graphics to create a piece of design. In simple words, they aesthetically create a visual design with the aid of the computer to convey a message to the viewers. They generally create graphic designing for the purpose of publishing or printing electronically such as brochures or advertisements. You can work as a freelancer or you can open a firm where you can form an association and run it. It is a good money making arena where you can elevate yourself as an entrepreneur.    

• Graphical design is heavily in demand for the branding of the corporate entities, therefore one must be aware that the design is in no way hampering the trademark laws or copyright provisions. Trademark is about protecting things that identify a business in the marketplace and logos are among the most important means of identification. Therefore one must work diligently and must ensure that the design is not violating any legal provisions

NOTE: One may opt for limited liability partnership or sole proprietorship will also work.

Translatory services

If you are a polyglot then you may choose this as a career option. In this era of globalization where corporate entities are trading cross-border or where ministers are traveling across the territory, one needs a translator. Here you can make space for yourself as this profession doesn’t require huge funds. You only have to translate the sentences into another language.

Statutory Requirement

• Select the business structure based on your business model.
• Register it under the shops and establishment act or if you are establishing it as a company register it under the company act and if as a partnership firm then under the partnership act.

NOTE: Partnership firm, sole proprietorship and even the Limited Liability Partnership will work.

Astrologer

Yess..!! it is a highly profitable profession which one can follow. If you have a good command over the Vedic astrology norms then you may either open an office of yours or you may create a website to facilitate the services online and you may do it both ways as well. You can also make a team and work.

Statutory Requirement

• If you are establishing it as a company then register it under the companies act and if as a partnership firm then under a partnership act
• Choose the best business structure have advantageous over the tax and other liabilities.

NOTE: sole proprietorship or the partnership will be suitable.

Interior designer

Since home decoration is a lot in trend, one can strive to establish oneself as a professional in this field. If you want you can take up the professional courses to facilitate the resourcefulness. But it must not be confused with the interior decoration because it is its subdomain. You need to be good at technical drawing, space design, material knowledge, furniture design and familiarization with various interior design tools. Apart from this, you need to have the good interpersonal skill to communicate with your clients.  

STATUTORY REQUIREMENT

• If you are establishing a company then register it under the companies act and if a partnership firm then under a partnership firm.
• You do not need to accomplish any other legal obligations.

NOTE: sole proprietorship, partnership firm and even the limited liability Partnership will be suitable.

Content Writers/Copy Editors

Though the term seems quite horrific, in reality, it is quite interesting especially for the one who is looking for the low investment business. They are basically the writers who are hired to write literary, journalistic work, speeches and other text which are generally credited to others. Celebrities, executives, political leaders they generally hire ghostwriter to draft and write their autobiography magazine article or other writing material

Statutory requirement

Copyright laws: as per the legal provisions if any person does any literary work under the course of employment then in absence of any contract to the contrary the employer shall be the owner, therefore the ghostwriter shall not be tagged as a content owner unless any contract is agreed in contrary.

NOTE: it is recommended to have a sole proprietorship or the partnership firm.

Pet-friendly/pet day care services

When everyone is away from home because of their work or vacation who will take care of their pets? So for all those who are in love with pets can take up the profession of taking care of the pets. doesn’t seems an exciting career! You just need to take care of the pets, feed them, play with them and earn the money. You even have the opportunity to grow the business and establish a firm where you can hire a lot of people and occupy a good market. This domain is the result of the dynamic changes that have taken place in the Indian society, therefore, the market is almost vacant in proportionate to other fields.

Statutory requirement

Under the shops and establishment act, it is required to register all the commercial establishment within the period of 30 days. Each State Government has separate criteria for registration of the Shops and Establishment Act.

NOTE: it is beneficial to have a sole proprietorship.

Creche

Another need of this growing society is creche. Though it’s not so new there is a huge potential market. When mother and father nobody remains at home then who will they leave their children with so they need someplace where they can leave their children. So if think that you love babies and loves to take care of them then you have this option where you can change your interest in a business.

STATUTORY REQUIREMENT

• The government also has made it mandatory from 1st July 2017, to have a creche facility in all the establishment having 50 or more employees through the maternity benefit (amendment) act 2017 and soon the labor ministry will come out with various regulations of setting up a creche. Therefore the interested person may seek the opportunity of establishing in near the establishment.
• Apart from this, one must register the establishment under the shops and establishment act.

NOTE: Sole proprietorship will be the most suitable.

Suggestion:

• Choose business structure as per the investment, degree of risk involved etc eg. Where the degree of risk is high choose partnership firm.
• Where the investment is huge and so is the risk factor, one can opt for LLP.
• Where the business involves a lot of unsafety, take insurance policies.

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