Many millennial in India are currently infatuated with startups.
Many of them have an idea or are working on something that is in line with their interests and solves a market gap.
To be honest, there is a lot of competition, and the only way to succeed is to be extremely skilled at what you do.
So, if you’re an entrepreneur considering how to start a business in India, this guide will help you through the process.
Before you start working on your startup idea, there are a few things you should know.
There are a few things to consider before we get into the “how to start a business” section.
Three elements must be in place before you start working on any startup idea.
- Your startup idea should pique your interest and be beneficial enough to fill a market gap.
- You’ll need to put in a lot of effort, and it’ll most likely be more difficult than you expect.
- Accept setbacks and don’t give up if things don’t appear to be going your way.
If you agree with these three reasons, let’s look at how to form a new company in India step by step.
What is The Best Way to Start A Business in India?
For everything to go successfully, you’ll need a plan and a procedure list.
To get started, you’ll need to take the following nine actions.
1. Make Sure Your Idea is Feasible
So, you’ve come up with a solution to a market problem.
- That’s intriguing, but is it plausible?
- Will it genuinely solve a problem that your target audience is interested in?
- And how much money do you expect to make at first?
All of these should be evident to you and your team, and you should have a plan in place to move forward.
You can use things like; this to see if your proposal is feasible.
- Market research
- Advice from an expert
- Previously conducted market research on a similar concept
2. Prepare Your Company Plan
You should have a business strategy ready before you start your operations.
It should, above all, include the following items.
- Opportunity and Market Description Strategy for the Company
- Business Plan
- Organization & Management
- Marketing Strategy
- Operational Strategy
- Plan your finances
A business plan will enable you to take a detailed look at how your complete business process will function. It will also aid you in presenting your business concept to others.
This will also give you a rough idea of how to get your business off the ground and grow.
3. Decide on The Best Business Structure
Depending on how you want to scale your organization, you can choose the best business structure.
All of these alternatives are available to you: a single proprietorship, a partnership, or a private limited company.
A sole proprietorship business can be run by a single person without the involvement of others. However, if you want to form a private limited company or a partnership, you’ll need to find good partners as well.
A single proprietorship or partnership may be the ideal option if you’re starting out small and have little money.
The formation of a private limited corporation, on the other hand, is a little more difficult.
Because a private limited company is recognized as a separate entity, any commercial liabilities will not affect your personal assets.
A Business Consultant or a Chartered Accountant can help you get your finances in order.
4. Seek out funds
You’ll need a lot of money to get started as a business and stay afloat.
Money can be found in a number of different ways. Here are some of the most important ones to try.
- Loans from a bank
Bank loans are a common source of capital for businesses. Obtaining a loan for an innovative company is very simple now that governments have developed a host of startup-friendly policies.
Bank loans can help you get started, and if your business is up and running, you can look into other options for intermediate financing.
- Angel Investors are individuals who invest in small businesses.
Angel investors are individuals who are prepared to invest in your startup in exchange for a stake or equity in the firm.
Many of these angel investors have past industry experience and can provide you with valuable business advice.
You will, however, be expected to show these investors that your company has a distinctive idea that is worth investing in on a regular basis.
- VC (Venture Capital)
Venture capitalists are people who invest in high-potential businesses. In exchange for their investment, they acquire stock in the company. Venture investors earn when a firm goes public or is purchased by another company.
5. Get your business registered.
The next step is to use the business structures we discussed earlier to register your company.
With the help of an Indian chartered accountant, you may accomplish this. They will guide you through the necessary processes and procedures.
A sole proprietorship or partnership can be formed quickly and with little paperwork. Forming a private limited company, on the other hand, takes longer and requires a number of formalities before you can begin operations.
6. Enroll in the Startup India Program.
You can register your firm on the Startup India website and benefit from a variety of government-run programs in India.
The definition of a startup was amended by the Indian government in 2017, and the total age limit for startups was raised from five to seven years.
Being a part of the Startup India program would make it easier for you to secure funding and will also provide you with some tax benefits for your business.
7. Rights to Intellectual Property
A distinct name, logo, and other creative assets are essential for your startup. To protect your intellectual property, be sure you have all of the necessary rights.
Having a domain name for your brand and obtaining a trademark for your logo are instances of this.
It’s a great idea to put money into creating a strong brand identity for your firm. This will include your logo, colors, tagline, and other branded information.
8. Establish A Strong Online Presence
You can’t afford to overlook the importance of having a good online presence in this century.
Brands are now built and nurtured through digital means.
Above all, you must have a visually appealing website that accurately represents your company. It should also include sections that explain what you do and how your clients benefit from it.
Make the most of social media, search engines, email, textual material, video, and other platforms.
Depending on the type of your company, you can choose appropriate marketing channels. If you’re in the B2C industry, social media sites like Facebook, Instagram, and Twitter can help.
9. Set up A Nice Work Environment
Having an office space is necessary for any business.
If you are just starting out, a home office may be ideal depending on the type of business you have.
If your company grows, you can relocate into a coworking space or a business Centre to have a proper workspace.
Make sure the office space you rent has all of the required amenities and is in a good location for your firm.
Having a great office site can help your business in a variety of ways, even if it isn’t a top priority when you initially start out.
It’ll be crucial to have a great office in a famous business district, especially if you have clients visiting your company.
In the B2B sector, however, channels such as email marketing have been proved to be more effective.
Some FAQs Regarding How To Start A Startup in India
1. How Much do Legal Fees for a Small Business Start-up Cost?
According to a survey, the majority of small businesses spend between $1,000 and $5,000 per year on administrative chores, such as legal fees and accounting costs.
2. What is The Cost of Starting A Business in India?
According to Bidde, the average startup capital for Indian enterprises in his study was Rs 375,000 ($8,300), while the average beginning capital for US-style startups was around $10,000. According to purchasing power standards, the initial capital requirement for Indian businesses should not exceed $1,500-$2,000 equivalent.
3. In India, How Much Does it Cost To Establish a Small Business?
To get started, you’ll need Rs. 500. Government fees might cost anything between Rs. 7000 and Rs. 10,000. Typically, start-ups receive finance of one lakh rupees (just what most people require), but they also want legal or accounting assistance. Their rates are decided by their level of knowledge and experience.
4. How Much Does it Cost to Start A Company?
According to research from the United States, the majority of home-based franchises cost $2,000 to $5,000 to establish, whereas the majority of microbusinesses cost around $3,000. Although each company’s financing needs are unique, experts propose a few guidelines to help you estimate how much money you’ll need.
5. In India, How Much Does it Cost to Operate A Modest Restaurant?
To build a restaurant in India, you may need to spend anywhere from 5 lakhs to 1 crore, depending on the location, type of food, number of guests, and other considerations. If you do not wish to invest your own money, you will need to find another way to raise funds.
6. Is GST Registration Required for Indian Startups?
Yes, GST registration is essential for startup businesses in a variety of situations, including:
- Had there been any pre-GST tax registrations? ( Excise, VAT, Service Tax etc.)
- The company generates more than Rs. 40 lakhs in annual revenue in India and Rs. 20 lakhs in the North-Eastern States ( J&K, Himachal Pradesh and Uttarakhand)
- Taxable Person on the Side
- Taxable Person Who Isn’t a Resident
- Taxes paid by startups under the Reverse Charge Mechanism
- Startups in the E-Commerce Aggregator
- Startups selling goods or services on e-commerce portals or to e-commerce aggregators must also register for GST and file GST returns.
- Deductor for TDS / TCS
- Provider of data access or recovery services
7. Do Startups Have to Pay Tax?
The government has established a 100 percent tax deduction for qualifying start-ups under Section 80-IAC of the Internal Revenue Code. For any three consecutive years, eligible start-ups incorporated on or after April 1, 2016, and before April 1, 2019, can claim a 100 percent tax exemption from payment of any income tax.
8. Is India Good for Startup?
India fosters the establishment of startups by providing low-cost trained labour, money from national and international investors, and the opportunity to flourish. According to Financial Express, start-up funding will hit a record high in 2021.
9. What Kind of Business might I Start with $50,000?
Here you’ll find a slew of creative business ideas to help you start your dream company for less than 50000 INR. We’ve got some new business ideas for you!
- Pottery
- Cloth Industry
- Food Service
- Photographer
- Chips making factory
- Designing
Final Thoughts
Above are the nine fundamental procedures for beginning a business in India.
In the beginning, completing all of these duties may take some time. As a result, you’ll need to be patient, and it’s also a good idea to have a thorough understanding of all of these processes before proceeding with your tasks.
Many large firms in India today were formed as startups only a few years ago. Consider the businesses of Flipkart, Ola, Zomato, and Oyo Rooms, among others, for inspiration.
Remember that you’ll need a startup attitude to succeed at this, and it’ll take a substantial amount of time and effort to see results.
If you found this article helpful, please share it with your friends who are wanting to start a business.
Please leave a remark below if you have any queries or feedback.
Best regards!
