Young people’s entrepreneurial ambitions are expanding in tandem with India’s growing middle class. Technology has thrown up a slew of new business prospects and simplified the process of beginning and running a company. As a result, it is a better moment to start a business in India than ever before. We’ll look at how to start a business in India in this article.
Choosing a Company
The Entrepreneur must have a vision for the proposed business before starting it. A vision could be as simple as the Entrepreneur’s plan of action for beginning a firm, or it could be a full business plan with market analysis, anticipated financial statements, and so on. Detailed business planning will assist the entrepreneur in avoiding mistakes and increasing the likelihood of business success. If the Entrepreneur hasn’t come up with a business idea yet, he or she can look for business ideas online. The following are some useful resources for coming up with a company concept:
- India’s home-based business ideas
- The Kickstarter Business Idea Center is a place where people may come up with
- A Comprehensive List of Business Concepts
Registration of Business Entities
The decision and selection of a business entity is the first stage in beginning a business in India. Choosing a company entity is similar to selecting a mode of transportation for a trip. If you are planning a lengthy journey, a car is the finest option. Similarly, if you plan to start a medium- to large-sized firm, you should form a Private Limited Company. If the business is micro or small, however, a Limited Liability Partnership (LLP) or a Proprietorship might be a better choice.
Two people would be required to act as Partners or Directors if the entrepreneur chose to form an LLP or Private Limited Company. During the formation of an LLP or Private Limited Company, a document such as a PAN card and address proof of the promoters would be required. Visit IndiaFilings.com or call +91-44-40247777 to speak with a Business Advisor about starting a business in India or choosing the right business entity.
Opening a bank account
One of the first duties following the incorporation of a corporate entity is to open a bank account in the name of the company. Corporate entities such as LLPs, Private Limited Companies, One-Person Companies, and Limited Companies can create bank accounts in India by submitting a copy of their Certificate of Incorporation and PAN card. Opening a bank account in the name of the business for a Proprietorship entity, on the other hand, maybe more difficult — one or more tax registrations may be required to demonstrate the proprietorship’s identification. For further details, see the article “How to Open a Business Bank Account in India.”
It is recommended to open a bank account with a Nationalized Bank if a bank loan is necessary for working capital or the acquisition of equipment while beginning a new business. When compared to privatized banks, nationalized banks are more likely to provide bank loans to startups. As a result, while opening a business account, the correct banker must be chosen.
Registration for Taxes
Various tax registrations may be necessary for the business depending on the sort of activity suggested by the firm, vendor criteria, or customer needs, as follows:
GST registration is required in most states for any person or entity with a turnover of more than Rs.20 lakhs.
TAN Registration: For tax deduction at source, TAN Registration is required (TDS). As a result, when recruiting staff or interacting with specific customers or vendors, TAN Registration may be necessary.
ESI Registration: When a company has more than 20 employees, ESI Registration becomes necessary. Businesses that outsource staffing requirements frequently request proof of ESI registration.