India is one of the most fertile startup grounds in the world and more than 4,000 startup ideas emerge from innovative minds every year. However, the sad reality about startups around the world is that nine out of 10 startups usually fail and India is not an exception.
Experts believe that one of the most common traits of successful startups is taking right actions at an early stage. So it is very important for budding entrepreneurs to work on a success strategy right from the beginning. And to devise a strategy for starting and running a successful business in India, you must know all that it takes.
This article will guide you through a quick checklist and a step by step guide to starting a small scale business in India . It will answer most of your queries including:
- Legal checklist for startups in India
- How to start a small business in India
- How to start a business in India without money
- How to start a business in India step by step
- Legal formalities for starting a business in India
- Documents required for starting a business in India
Let’s get started:
1- Find your true potential; you may have interest in multiple business ideas, but not all can be started at once. Ideally, look for the options that matches your expertise and skills.
2- Finalize a business idea; while looking for your true potential you may find a lot of business ideas that you can do well. It’s better to list them all and then do a quick market research to know what’s in demand, where the competition is less and what can be done in time.
3- Create a business plan; put things on paper, i.e. set goals and figure out the plan to achieve those goals. A good business plan includes financial planning, marketing plan and a growth strategy.
4- Name your business & register it; you can start and run a business in India as a sole proprietor or register a partnership, Limited Liability Partnership (LLP), Public Limited Company or a Private Limited Company. This is probably the most sensitive part of starting a business as it involves a variety of procedures which must be done correctly, in order to avoid legal complications. So, the wisest option is to get help of a legal expert like India Filings who provide complete help for starting a company. And yes, do not forget to register a domain name for your business even if you don’t plan to launch a website for now.
5- Obtain PAN Number from Income Tax Department.
6- Fulfil the other taxation requirements if applicable, i.e. Service Tax, VAT / Sales Tax, Excise Duty, Customs Duty and others. Doing these yourself is not just hectic but can also be full of errors, so make sure you hire a professional for the help.
7- Find state specific guidelines & procedures, licenses and permits requirements and others legal issues. Your company registration service should be helping you with all these.
8- Rent a commercial space or in case if you want to start a home based business, make sure you have specified certain area for home office. Also ensure that you are not breaking any local law.
9- Open a business bank account.
10- Find a mentor; preferable someone with relevant startup experience and is willing to help you.
11- Find a co-founder; it can be a great help, especially if you are a non-tech person and a techie co-founder can eliminate most of the startup cost. Other than this, if you are a tech savvy founder, a co-founder who is a marketing guru can take your startup to the next level with very little investment on marketing.
12- Decide on timelines for major milestones and stick to them irrespective of any hurdles on the way. This is when you filter out the actionable items from your business plan.
13- Be strict with the finances; never spend money on fancy offices, unnecessary equipment etc. until you get your startup in profit.
The Bottom Line:
Startups are very risky everywhere in the world and so is the case in India. No matter how much we prepare, there may come challenges that nobody taught you about, and this is when you have to deal the situation yourself. The more you educate yourself and stay updated with the latest happenings, the better you can deal any type of situations!