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How to Start Online Application Based Company?

How to start online application based company?
Online application or web app is a client–server software application in which the client (or user interface) runs in a web browser. Common web applications include webmail, online retail sales, online auctions, wikis, instant messaging services and many other functions.


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And as we can see all these web application are now widely in demand and had already accepted by youngsters and kids. It has makes our life simple and interconnected.


The last decade has witnessed the very healthy phenomenon of people turning to entrepreneurship and starting businesses of their own, particularly in the online space.  Businesses create employment and wealth, and are vital to our young and growing economy. Let’s take a quick look at the things you need to keep in mind as you start, from a legal point of view.


  1. Register your business
Even if you operate business on virtual space(ie. On internet) but people who operate it are real. So, to start a business you need to give your business a legal entity. In country like India we have so many options to register our business. These are as follows:
    1. Sole proprietorship
    2. One Person Company
    3. Partnership firm
    4. Limited liability partnership firm
    5. Private limited company
We advise you to start business as sole proprietorship or as partnership firm or as limited liability partnership firm. These kind of business set ups require limited documentation and easy to start as per law.
In case of sole proprietorship you just require to following three steps
    1. Open a current bank account,
    2. File personal tax return
    3. Get intellectual property right


  1. Intellectual Property Right
In website based business only a great drawback is that your business logo can be easily copied. You should get the necessary Intellectual Property rights protection.
If you have a catchy logo or name, get trademark protection for it. You get a copyright the moment you publish something, but remember to add © <Your website name> 2011 at the bottom of each page (include it in the footer).
Patent protection is the most expensive and time consuming kind of Intellectual Property Protection, so you must evaluate whether you actually need it first. If you are convinced that you need it, you need to draft and file a Patent Application.


  1. Taxation
Typically, a web based business is either involved in providing content or a service. A content based site needs to pay income tax on the revenues it makes out of advertising.
Service tax
Online business services are not fall either in mega exemption list or in negative list. Hence online business is taxable under the purview of service tax.
General exemption under service tax is:
Small Service Provider: Vide Notification No 33/2012-ST, dated 20.06.2012 – Exemption to Small service providers having taxable turnover of less than 10 Lakhs and providing services other than by way of under a brand name.


  1. Marketing
Try to understand demand of customer: Get to the market fast with a prototype. Don’t wait to create a complete app with all the features. Build only with the core proposition of the app and see if the customer is ready to buy. Once they do, you will get a lot of important feedback from your paying customers.
Clear monetisation policy: There’s a one-in-a-million chance (or probably less) that you could be the next Facebook or Twitter. The choice is yours, you want to build a business, have a clear monetization strategy right from the get go.
  1. Conclusion

As per the present scenario demand of application based business is increasing continually and there is huge scope of business in near future. So, it is great business idea to deal in.




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