ASSIGNMENT

M. Sri Phani Bhushan

AP19110010110.

Starting a business involves several stages, beginning with the idea and ending with
the official registration of the organization. The most important aspect of beginning a
business is to have good ideas and conduct research on those ideas.

I'm thinking about starting a beverage company because the margin we get in this
industry is higher. And also it is one of the most demanding products in the current
era. There are limited soft drink operators in the market, while the products
themselves are complements of other foods and beverages. And here are the phases
involved in establishing that idea as a company.

The following are the phases in establishing any company.

1. Seed stage/ Discovering of the idea.

2. Capital and research on returns or profit we get.
3. Incorporation stage.
4. Development stage

IDEA:
It is the starting stage in establishing a business. Mainly this stage deals with
developing the proper ideas and the main objective of the company. Finding the right
business idea that suits the skills a person has and the requirements he has, will play a
crucial role in the development or success of the business. This stage also defines
those who form a board of directors and other business advisors. Here we need to find
whether the idea we took is worth it in that area. We also need to have a look at the
raw materials and labor. We need to perform a SWOT analysis. That determines our
strengths and weakness.

For the Beverage industry, we need to have a look at where we are willing to establish
a manufacturing unit. Beverage industries require plenty of water sources. So
establishing the unit in a drought area would not be a good idea as the unit may face a
shortage of raw materials. So Choosing the right area for establishing a unit plays a
major role. Based on the land we have, we need to design a manufacturing unit
effectively so that we got the most out of that unit. Along with that we also need to
look at the future of that industry and whether we have all the requirements or not. If
that satisfies we can proceed further.

CAPITAL AND RESEARCH ON RETURNS:

In this stage, the person has to research the capital they require to set up a business
and the profit-sharing terms. They also need to discuss how much loan they need to
apply for and the surety. After fixing the capital amount, we need to research the
machinery required and the availability of laborers in that area. We also need to check
does government provides any incentives or subsidies for this kind of unit.

It may be tough to find the kind of funding you require as a beginning as an

entrepreneur, but there are various choices. Because of the risk inherent in their
investment, new firms frequently face opposition. Your capacity to secure funding is
determined by your diligence and inventiveness. There are many various types of
funding available, both private and public.

INCORPORATION STAGE:
After undergoing research about the idea, the main step is to register the company.
This is how the business gets started. We must submit a few paperwork to the ROC in
order to register our business. The ROC issues a certificate of incorporation after
validating all of the papers.
The following are the steps involved in registering a company:
1. Memorandum of association: Memorandum of association is a document that
should be signed by the founders of the company. In the case of a public
company, seven or more people are required, and in the case of a Private
company two or more people are required. The document contains different
clauses like
1. Name clause- The founders have to mention the name of the
company. The name of the company should be unique.
2. Registered state clause- Location of company office should be
mentioned in this clause.
3. Object clause- The main objectives of the company should be
mentioned in the class.
2. Articles of association- AOA should be signed and submitted to the ROC by
the founders.
3. The company's directors shall sign a written consent to serve as directors,
which should be lodged with the Registrar of Companies (RoC).
4. Any lawyer of the High Court or Supreme Court, or a person in the office of
Director, Secretary, or Managing Director, should make a statutory declaration.
This declaration must be submitted to the RoC.

After verifying all the documents submitted by the founders the ROC issues certificate
of incorporation. The company can begin operations as soon as the certificate is
issued, and it must follow the rules provided in the Memorandum of Association.

DEVELOPMENT STAGE:
The development stage is the initial step of a new company's life cycle. Companies
focus on establishing themselves during the development stage through activities such
as market research, product development, and the creation of new manufacturing
facilities.
Before launching a business, a lot of research is done. We must ensure that all of the
documents are correct and authentic. After forming a business, we must work toward
our objectives while keeping the company's vision and mission in mind. These are the
stages involved in beginning a business and establishing it as a company.