In Today’s India young generation is inquisitive and interested in doing work in their own way. The number of youngsters with independent mindset across India has risen leading to the creation of more entrepreneurs rather than job seekers. In addition to this, technology has majorly contributed to the creation of numerous business opportunities. It has made starting up a business and managing it much easier. This blog elaborates on how to start a business in India:
Deciding the line of business
The first and foremost step in prior to starting a business in India is the idea and vision of the line of business. The entrepreneur ought to have a vision whether in the form of simple or detailed business plan with market analysis, projected financial statement, etc. However, a detailed business plan is preferred over the simple plan as it helps the aspiring entrepreneurs to avert mistakes thus, increasing the probability of succeeding in the business. However, if you are on the other side and do not possess any particular business idea then you can put your mind on some research work by taking help of technology through the internet.
The following are good online resources for finding business ideas:
- Home based business ideas in India
- Business Idea Center
- Kickstarter
- Big List of Business Ideas
Business Entity Registration
Once the decision is made about the business to be started when an entrepreneur has to choose the form of business. The different forms of business available in India are as under:
- Proprietorship
- Partnership
- Limited liability partnership
- Private limited company
- One Person Company
- Public Limited Company
Choosing a form of business depends on various factors for example nature of the business, number of members involved, initial capital, etc. For instance, if there is only one person then we can choose either a proprietorship or a One Person Company as the other forms of business registration require at least two or more persons. However, for a micro or small level entities it would be prudent to choose Limited Liability Partnership (LLP) or proprietorship. Further, some necessary and mandatory documents such as PAN and address proof of the entrepreneurs involved would be required at the time of registration. For detailed assistance in choosing the right kind of business entity kindly visit setindiabiz.com or seek business advice through our expert business advisors.
Bank Account Opening
After the incorporation of the business entity, the next significant step is to open a bank account in the name of the business through which all the business transactions would take place. Corporate entities like Private Limited Company, LLP, One Person Company, and Limited Companies are allowed to open a bank account in India which requires the submission of a Certificate of Incorporation and PAN Card of the entity. However, in the case of a proprietorship entity opening a current account in the name of the business requires submission of the document prescribed by the Reserve Bank of India. For detailed assistance on bank account opening kindly visit setindiabiz.com or seek business advice through our expert business advisors.
Tax Registration
Depending upon the nature of business and activities thus involved, various tax registrations might be required for the business:
VAT Registration
If the business activity involves sales of goods or products then VAT Registration or TIN Number is required. It is State specific registration and every state has an exemption limit for the small business from VAT registration. The exemption limit varies from state to state. The same would be required to become a seller on Snapdeal or Flipkart or any other e-commerce portal as well.
Excise registration
Some business requires excise registration along with VAT registration. These are as under:
- Manufactures of the goods on which excise duty is payable,
- Warehouse storing goods on which duty is not paid and
- Dealers issuing cenvatable invoices
Service Tax Registration: All the service provider who are rendering services to the customers and have an annual billing of more than Rs.9 lakhs need themselves to be registered with service tax department.
TAN Registration
TAN Registration is mandatory for tax deduction at source (TDS). Every business at the time of making payment need to adhere to the rules of TDS and has to deduct tax if any required by the rules therein and the deducted amount is to be submitted to the Income tax department on behalf of the person whose tax is deducted.
For all the above tax registration there is a time frame within which the payment of taxes need to be submitted with Government of India and return providing all the details of taxes involved in a particular transaction is to be filed.
In addition to the above tax registration with relevant authorities there are some more licenses and registration is required which is product specific or depends on the type of service rendered. A business need to be registered with ESI department if employees are ten or more in number. PF registration at the same time is a voluntary registration till the number of employees are 20 or more. For detailed assistance on registration & licenses kindly visit setindiabiz.com or seek business advice through our expert business advisors .