Young India is getting want to lead! We don’t want to work like our parents, do we? The usual 9 to 5 job and the monotonous lifestyle is a major turn off for all young Indians out there. Hindustan Times recently reported that 93% of Indians want to be entrepreneurs. In this time of change Company Vakil helps you to understand how to become lead an Indian business. This article will guide you to the basics of how to start a business in India.
Our Prime Minister Narendra Modi is luring the young Indian entrepreneurs into the idea of business and has made various government schemes to help and support the new Indian business and Indian entrepreneurs.
Whatever you start, you need a plan!
So what’s the plan?
For basic Indian business, you need to the following to be checked in your checklist:
1. The Ultimate Idea- Easy if you choose something you are good at.
2. Research and Iteration- Basically to know about what you are doing.
3. Background Bureaucratic
4. Finance
5. Press the start button with enthusiasm!
What’s your idea?
Coming up with a business idea is the very first step in starting a business in India. India is a huge market for every Indian entrepreneurs. India always has an audience for everything but all you have to do is come up with an interesting idea to find your customer base.
Your goal and your passion which is burning inside you could be a kindle to your ideas but always check whether it has an audience base. It is often practical if you do your research on your idea and a little market analysis to start with. This detailed plan with research will help you avoid mistakes and increase your chances of a good business. Being an Indian entrepreneur can be tough because you have to cope with the diversity if the Indian audience.
Business Design is another level of research once you have figured out what you want to do. Finding the crux is the toughest of all and making it work is part of the business design.
In case you are struggling with ideas try to follow this simple design steps to help you find a way.
1. First, make a long list of things which you are good at and want to do.
2. Choose one business first.
3. Research, Research Research.
4. Look for problems in your ideas.
5. Foresee the possibilities of failure.
6. If it fails to find ways to solve or go back to No.1 and start again.
This above process is called iteration and it will help you figure out a solid business idea. Once you have a solid business idea that crossed all the filters of research, failure, feasibility, financial ability and ease of market-It is time to move forward.
Background Bureaucratics to start a business in India
When it comes to starting a business in India it is important for you to identify the entity of your business. Identifying the entity is important to proceed to register your business. A small business needs a different business entity and a large business needs a different one. Just like how you choose your suitcase for a trip. Small trip needs a small briefcase if it is a long trip you need a bigger one.
Similarly,
1. A medium to large business, it is important to register your business as a Private Limited Company (Pvt.Ltd).
2. A Micro or small business would need to be registered under Liability Partnership (LLP) or Proprietorship
To register a Indian business under these two categories you need two people to act as partners or directors. You also need your PAN Card and address proof of the partners would be required. You can contact CompanyVakil to help you go through this tedious bureaucratic process.
CompanyVakil also helps you to guide you to choose your right entity for your business idea.
Business in India: Finance Matters!
Once you are registered you will receive a Certificate of Incorporation. With this, you need to forward other procedures which involve the finances of your company. Maintaining the finance for your company is very important and it is what holds the company successful.
Important tasks of Business Finances are as follows
Opening a Bank Account
To incorporate the Indian business entity you should open a Bank account in the name of the business you started. To open a corporate bank account for LLP and Private Limited Company you need to submit the Certificate of Incorporation and PAN Card of the entity.
In spite of this, the bank account opening can be a complex process as it also needs one or more tax registrations to establish the identity of the business.
In case of a bank loan it is more efficient to open a bank account in a Nationalized bank. Nationalized banks are more in favor of providing bank loans as there are many government schemes which support young entrepreneurs.
Registering for TAX
Tax registration can be a cumbersome process as there are a variety of taxes you need to register. To choose the correct type of Tax Registration you need to identify your business criteria and customer requirements.
Types of Tax and their Purposes are as follows:
VAT Registration/TIN Number: If the business includes sales of goods or products.
Service Tax Registration: If your business is service oriented and has an annual billing of more than 9 Lakhs.
TAN Registration: This is required for a tax deduction, It may be required while hiring employees or dealing with some customers.
ESI Registration: If you have more than 20 people working for you then you need an ESI Registration. It is requested by a business that outsource employees.
Once you have completed all these checklists above you are almost ready to start your business. All you have to do is….
Press that START BUTTON with enthusiasm!
All the best for your business.
Summary
CompanyVakil breaks down the cumbersome process of starting a business in India into an easy 5 minute read to help you become your own boss. This article guides you through all the bureaucratic process involved in starting a business in India. Being an Indian entrepreneur can be very simple if you understand how it works.
