Now for the update, my startup is no more a sole-proprietorship. It is now a Private Limited firm - 3Five8 Technologies Pvt. Ltd. When I started - sole proprietorship made sense - because it did not cost anything, nothing to register and I can concentrate on building the portal.
However, after the launch and after winning Adda's first premium customer and the subsequent customers I dealt with all had this uneasiness doing business with a sole proprietor. I understood that sole proprietorship was not sufficient any more. Finally kicked off the process in April sometime - took close to 2 months in my case because of various reasons.
Having a Pvt. Ltd. company gives confidence to my customers.
And it did cost quite a bit :
1. It costs quite a lot to register.... around 27k.
2. Every year the company has to submit its audited finances - even if it makes a loss. This is again around 25k every year.
3. You cannot simply shutdown a company. The procedure is very cumbersome and one has to get NoCs from every possible nook and corner.
4. Had to deposit 1 Lakh as initial investment - or show assets worth 1 Lakh to start.
I cannot imagine what the formalities will be for making a Public Ltd. company. If I do it one day I will blog here :)
Are you wondering what is 3Five8? - There is a sound reasoning behind the name but I am still debating whether to explain it or let people keep guessing what it means !