Aspiring to become an entrepreneur or businessman and setting up businesses have been rising tremendously among the people. In India, everyone, especially the youth, is looking to develop unique business ideas and create opportunities to grow. This, in turn, is reaping benefits for both the business and the economy at large.
India is a land of opportunities, and to start and manage the business more straightforwardly, the country is equipped with proper methods and planned strategies that can make your dream come true. Though starting a business can be a challenging task, now, due to smooth work procedures and operations, things have turned easy.
Therefore, your decision to start a business in India will be more rewarding than any other time.
In this article, we will be discussing the start to end process and provide you with a complete guide of starting a business along with the following:
Talking about the Indian business scenario, the business structure witnessed a paradigm shift over the years, providing immense opportunities for the upcoming and growing sectors of the economy.
There is no doubt that the Indian government played a vital role in transforming Indian businesses by opening doors to possibilities and encouraging them to take these to their best advantage.
With the changes in Macroeconomic reforms, finance reforms, tax reforms, and relaxing the market, India revamped the entire map of doing businesses in India.
As a result, the scope of doing business in India has grown in magnitude. With the Make in India campaign, more and more companies are entering the market, focusing on achieving their operational and business effectiveness and creating a brand in itself.
Now, doing business in India is not a tedious task. Instead, it is made simpler for everyone to access sources via the schemes and initiatives and expand the business globally. With these facts, it is sure that Indian businesses have a very long way to go to leverage up to the best possible way.
India welcomes any kind of business to get started. You have the freedom to choose and start any business in the sectors like Automobile, Financial services, Cement, Gems and Jewellery, Healthcare, Information Technology, Banking, Insurance, Media, Oil and Gas, Real Estate, Textiles, Tourism, Hospitality, Agriculture, Pharmaceutical, Food, and the list is endless.
So, as a business, you can either offer a product or service based on the field.
However, these are the following businesses and platforms that you can start in India:
A sole proprietorship business is owned and managed by one single person. The small traders and merchants come under this category. Under this form of business, the registration is recognized through service or GST registration.
A partnership firm is a form of business where two or more individuals agree to come together and manage the business's operations, as mentioned in the partnership deed. The setting up of a partnership form is less complicated and is a viable option, especially for home businesses.
A Limited Liability Partnership differs from an ordinary partnership in terms of the liabilities of the partners.
Under this, partners associated with the firm are protected from negligence, misdeeds, and incompetence by other partners that do not demolish the Partnership.
Under One Person Company, the business owner enjoys twin benefits. First being a solopreneur, and second, being a promoter of the company. The person can enjoy the advantages of forming a company except Equity funding or offering employee stock option plans.
Companies are the most popular form of business structure that is practiced in India. By forming a company, you can take advantage of funding, limited liability, and attracting suitable acquisitions.
The company is bound to conduct meetings and file annual returns stated by government jurisdiction under the Ministry of Corporate Affairs.
A Public Limited Company certainly has more advantages than a Private Limited Company. These companies have the right to issue IPOs to the public, attract investors and enjoy flexibility. These companies are suitable for organizations that have a different perspective and higher growth possibilities. A few examples include SAIL, GAIL, BHEL, IOCL, and a few more.
India is now at a very progressive stage. As a result, it is opening up to represent in the different markets across the globe. The Indian government provides a favorable business environment for all the organizations to come up and make most of their plans.
As a result, it is now more viable for businesses to set up their businesses in India to maintain their stability and growth in the market. Adding to it, the businesses can also get the opportunity to work and explore in the international market.
Let's take a look at the primary five reasons highlighting the advantage of starting a business in India:
Before starting up your business, you need to be thorough with your background. By background, we mean having a mindset to start a business and seeing it through, despite the odds.
Following is the 12 step guide to get started with your business that can help you to turn your business idea into a successful execution:
Before getting your hands over the business, it is crucial to think and decide on doing the business.
Since there are many lucrative business ideas available, break them down and create pointers, seek guidance, research ideas, and consider every factor before you push the button to start your business.
After getting the business idea, the next step is to research within the market to break down the suitability of your objectives. You can start by examining your potential competitors and partners to understand the profound insights and information of the particular industry.
Market research is vital and should be at the topmost priority.
After the initial steps, the third important step is to acquire the relevant skills, training & experience that can turn your business into a fortune. Before starting a business, it is crucial to learn specialized training courses or acquire the skills by working in different organizations and clients.
Your past knowledge and experience in the specific industry can help you to build fresh perspectives for your business because, after all, no one can understand your business better than you.
With so much learning at different stages, it is essential to document your business plan's evolving aspects like feasibility studies, project reports from start to end, and other details.
By having a full-proof document plan, you can present it better and give your thoughts and ideas a professional touch. This will also help boost the prospects interested in knowing your plan and preparing you for future conduct.
Finance is the lifeblood of the business. The businesses need to finalize the source of the funds necessary to start the business.
The step involves acquiring estimates, calculating finances, and figuring out reliable ways to fund the business.
Few of the major sources include banks, Financial institutions, Cooperatives, Crowdfunding, Angel Investors, Venture capitalists, or self-funding.
After covering the five significant steps, it is now the time to develop the product and service, setting the purpose of a business. While developing your product or service, it is essential to prepare a checklist of finding a manufacturer, setting the price strategies, crafting the product, creating the trial run of the service or product, etc.
During the initial stages of development, it is only you who will be working for your business. Later, you will require a set of teams that can help you to scale a business. The team members are a partner, employee, or freelancer that best fits your needs.
Deciding your location is one of the crucial steps involved in starting a business. The factors of the area include your qualifications and the target market that best suits your business operations. Either it can be a small shop, stall, or a full-fledged office.
There should be no compromise on the location because your business is highly dependent on it.
After finalizing the finances, product & location, it is now the time to register yourself as a business and mark your presence in the market.
You need to carry out all the formalities of starting a business and complete the registration process that is the first step towards the launch of your business.
The pandemic has already brought the world into an online saga. By having a website, you can maintain your brand's online presence and allow direct ordering and payment processes of the products and services.
It will also help to create a brand in the market and enhance trust among your customers.
This step is your business's future. Even if you have started, it is crucial to generate revenues by applying different sales strategies and techniques to gather the customer's attention.
Identifying the target market, growing the customer base, putting ads, creating sales funnels, sampling, sales promotion, or any other strategies that can convert your leads into revenue can help your business live by.
Without a growth plan, no business can exist for a long time. As a result, the business needs to indulge in different ways to grow and expand for a better sustainable future.
By leveling up, the business can start a new target market, acquire other businesses, expand their offerings, plan out to market themselves, and create a good customer relationship.
There are several other strategies like doing in-depth research, hiring good people, making superior products, and delivering beyond expectation to pave your way to build the empire that you have always dreamt about.
The registration process of businesses in India involves certain legalities that one needs to go through to be on the right side of the law.
Following are the fundamental steps that are necessary at the time of registering the business in India:
The first step is to choose and select the name of your business.
Your business name is your identity, and hence the process of naming your business is integral. The name should be strong, unique, and well-aligned with your purpose that the people can remember.
While registering the business name, you need to ensure that your name doesn't match any other brand or company.
After you are done with the inspection, you can register your business name with the Registrar.
As per the Information Technology Act'2000, the business must use digital signatures on the documents submitted in electronic form. For this, the business needs to apply for the Digital Signature Certificate as proof of valid documents. This will help to ensure the security and authenticity of the documents filed via online means by the person.
Similarly, the Director Identification Number is allotted to the individual appointed as a director of the business. The person needs to apply the form of DR-3 and obtain the number for registration.
Preparing the documents required at the time of business registration depends on the type of business you are going forward with. There are different sets of documents and requirements to incorporate your business as a private limited company, OPC, Partnership firm, or other company.
It is recommended to list out the essential documents in advance that must be attached within the registration process.
After you prepare the documents and complete the initial process, you are open to registering your firm or the business. Since the process has turned online, you need to fill the application form for Registration.
After filling in the application form, the next and final step is to submit the documents in the PDF format that completes the registration process.
In this step, you will be required to pay the registration fees, and after the successful payment, you will obtain a registration number that you can use to track the progress of registration.
After cross-examining documents and getting a thorough check, your business will be successfully registered in the business books.
Before starting a business, it is essential to understand the documents required at the time of registration. All of the documents act as legal proof to start your business and meet the legal requirements in India.
As mentioned in the registration steps, the documentation requirements of businesses are different. You need to keep a check on documents prepared accordingly.
The list of standard documents required for the registration are as follows:
The founder's agreement is an official contract signed by the founder of the firm. If there are co-founders, then both are required.
It also includes Photographs, Pan card & ID proof details of the Directors, Partners, or the Proprietor associated with the business.
The Certificate of Incorporation is a legal document that makes your business formation legal and brings the business into existence.
The PAN card of the business is a must-have document required for registration.
The Tax Identification Number (TIN) is a unique 11 digit number serving as the identity of the business.
The Digital Signature Certificate acts as legal proof to use the signature of the business for official purposes.
The GSTIN is mandatory for businesses, and the taxpayers are assigned a PAN-based 15-digit number.
Bank Statements, Electricity bills, or any other utility bill that can act as legal address proof of the registered office.
Based on the choice of business organization, you will be required to set the other documents pertaining to the same.
With the advent of the internet and the smooth registration process, India offers many benefits in availing the effects of registration for businesses.
Let's take a look at a few of the benefits in carrying out the registration process: