Here’s How You Can Start a Business in India – Full Guide
The government of India was promoting Entrepreneurship and start-ups from the past few years. Initiatives like Startup India, Make in India, Atal Innovation Mission are the few took by the government of India across different sectors.
Indian Government also gave importance to women by recognizing the women entrepreneurs who are now a part of the country’s economic growth. The government also provided incubators for startups which take care of deployment and growth of start-ups.
Now India became Entrepreneur hub by providing enormous opportunities for entrepreneurs. If you have a good startup idea, then it soon becomes easy to deploy it with the help of government schemes and initiatives. Let’s see the steps to start a business in India
Research
You have come up with a new business idea, and now it’s time to implement that idea with a perfect strategy. The first and foremost thing is researching your business idea. Before putting your business in real ask yourself these questions if you find answers then go on.
- What is the need for your products or services?
- Who needs those?
- Who are your competitors?
- What is the type of competition? Is that a healthy competition?
- What is the market for your business?
Research to find out all the answers list out your competitors, understand the business strategy and make a plan accordingly.
Legal procedure to get your business registered
There is a lot of paperwork to be done to start a business. Choose the type of business structure for your firm. The options that are available for your business structure are Private Limited Company, Public Sector, and limited liability partnership. Private limited company is the most suitable form of business structure for startups. Make sure the business structure before entering registration work.
After choosing a legal entity, make sure that you have all the documents that are required for your business.
Documents required:
- PAN card of Directors
- Two Passport size photographs of directors
- If you have your property Tax Pay Receipt
- Address Proof
- No Objection Certificate
- Recent Electricity Bill
- Rental agreement for office
- Last Mobile Bill/Bank Statement
- ID Proofs – Voter ID/Adhar Card/Passport/Driving license of directors
These documents are mandatory to register your business. Next step is to get digital signatures of the firm’s directors with secured USB tokens. It is done by government authorized companies. Now choose the best company name for your firm which is not registered by other companies. Check whether any other firms already registered with the name you want using tools like MCA website name search tools. Search your brand name with business structure extension.
After selecting a name, prepare the document with terms and conditions and policies of your company and include Director’s responsibilities and shares which are called MOA and AOA for Private Limited Company and LLP agreement for Limited liability partnership. Get name approval form which is issued by the Ministry of corporate affairs by filling the online form.
After verifying all your documents, you will get an incorporation certificate from ROC with CIN which indicates that your company is now a registered company. Now go for companies Tax Registration and then open a bank account for your company with the minimum balance of INR 25000 for Private Banks like ICICI and Axis and government banks, min balance is 10000 INR. Company registration costs from 7000 to 15000 INR depending on the nature of the business and business structure.
It is the process to follow for your company gets registered. Now, this all process became easy; some companies will do the process all you need to do is pay money and check whether everything is proper or not.
Choosing Office Space
The business location set up is a crucial part of your business operations. It is a home, or your property or private/shared office space or else retail location whatever but it should be easy to access your company through any transportation. Easy access to your site is suitable for client and professional meetings. Another important aspect of choosing office space is a perfect working environment which gives the best results in your business.
India is a place with 1.3 Billion population and well-established firms. It’s a place where many educational and research institutions, Indian technological organizations like BAARC, SAIL ISRO, HAL, Wipro, Infosys are located. It’s a place where most highly educated workforces are established.
Bangalore is IT capital of India as it playing a lead role in Information Technology and as IT exporter. Bangalore is also called Silicon Valley of India. So the idea of Starting a business in Bangalore is an excellent move to get succeeded in business. You will get a vast network to enhance your business.
There are many office space providers in Bangalore so that you can select the office according to your business type. There are firms like MagicBricks, BangaloreOffice, 99acres, OfficesHub through which you can find office space for rent in Bangalore. You can use these resources to find suitable office space for your business.
Making a Powerful professional team
Discuss with your Human resource department for the hiring process and be cautious while recruiting employees. Divide job positions according to your requirement. Before hiring you to need to know how to manage employees their payroll and taxes and maintain records of employee’s payroll. Don’t recruit too many people unless there is a project requirement. If you are outsourcing your work to contractors, then make a contract agreement for that.
Many consultancy teams and companies are working only on hiring employees for the companies; if you are willing, you can approach them. Another option is to post your requirement online, and select employees through screening outsource or recruit a perfect HR team for this selection process. Get your team ready.
Financial Analysis
For a startup, you don’t need a lot of money, but you should at least be able to afford initial investment. You will be financing for the company registration and for legal permits and authorization to start your business. Rent, marketing and advertisement, employee’s salary, travel expenses, your finance and as it is a new firm for opening events you should spend some money on these things.
You need to plan your finances according to all the requirements at least for one year until your company gets revenue.
Business promotion
It is not that easy to achieve success in business, and you need to work hard for that to happen. If your business started and it is running, then it is time for your business promotion. You need to attract your clients and customers for that you need a good advertising and marketing team. Be creative come up with new ideas of marketing.
Follow all the above points we discussed, be optimistic and consistent. Don’t get panic about setbacks those are part of life. Remember constant focus and perseverance increases chances of success. Good luck with your startup.
FAQS
Starting a business in India largely depends on the type of business you are looking to start. Most businesses require a combination of registration, financial management, local and state taxes, permits, licenses, and other requirements depending on the business. You will also need to create a legal entity, typically a registered company, and comply with labour and environmental regulations. You may need to register and obtain approval from the Reserve Bank of India (RBI) to operate a business and bank account in India. You should also research filing fees and regulations related to specific fields of business.
The documents required for starting a business in India vary widely depending on the nature of your business and its location. Generally, you’ll need to register the business name, obtain a Permanent Account Number (PAN) from the Income Tax Department of India, register for Goods and Services Tax (GST), and obtain necessary permits, licenses and registrations from the local authorities. Some businesses may also require additional documents such as Environmental Clearance or No Objection Certificates.
The steps to register and set up a business in India involve first identifying the type of business you plan to establish, such as a sole-proprietorship, partnership, limited liability company (LLC) or private limited company. After that, you must identify the appropriate legal documents and submit the required information to the relevant authorities. This includes filings and documents related to name registrations, PAN registration, GST registration, Memorandum of Association and Articles of Association, company seal, and other applicable forms, as well as filing for appropriate local and statutory requirements.
Depending on the type of business you are looking to start, you will need to provide certain financial documents, such as a bank statement, balance sheet and income statement. These documents are important as they will help determine the financial health of your business and help establish the eligibility of loans and credit applications to investors. Additionally, you should consult with an accountant or financial advisor to ensure your business complies with local and statutory regulations.
Depending on a number of factors, you may be required to pay direct and indirect taxes. Direct taxes are usually based on a company’s income and profits from the business, and include taxes such as the income tax, corporate tax, wealth tax and capital gains tax. Indirect taxes include the Goods and Services Tax (GST), Value Added Tax (VAT), and Customs Duties. Taxes are managed and collected by the Central Board of Indirect Taxes and Customs (CBIC).
Depending on the type and location of your business, you may need to obtain certain permissions and approvals from the local authorities in order to proceed with setting up your business. These may include environmental clearance, labour compliance, fire safety clearances, or other approvals that are required by the local governing bodies.
Yes, the Government of India is committed to facilitating start-ups and has launched multiple schemes and initiatives to help entrepreneurs overcome the hurdles typically faced when starting a business. These include concessional loans and other financial support, soft loans and specialized schemes to help women entrepreneurs and tribal entrepreneurs.
Starting a business in India can be a daunting process, and there are several common challenges faced by entrepreneurs. These can include navigating the complex legal and regulatory framework, finding the right administrative support and talent, accessing funds, and complying with local laws. Additionally, entrepreneurs may face difficulty in finding the right customers, marketing their products and services, creating effective branding and business strategies, and establishing themselves in the marketplace.
There are several methods for finding the right customers for your business. These can include engaging with industry networks and associations, attending events and seminars related to your field, engaging in local marketing campaigns, leveraging social media platforms and using customer relationship management tools. Additionally, you can also join an accelerator program that connects you with potential customers.
The Government of India has launched several schemes to help entrepreneurs with their start-ups. These include specific programs and initiatives such as the Start-up India Action Plan and the Make in India initiative. Additionally, there are various incentives and concessional loans available through schemes such as the Stand-up India Scheme, the Mudra Yojana Scheme and the Credit Guarantee Fund Trust for Micro and Small Enterprises.
