“It’s the century of the brown man and the yellow man.” A dialogue from “The White Tiger”, a Bollywood movie starring Adrash Gourav and Priyanka Chopra. The dialogue is true to an extent. The way this Indian generation has left the job culture and adopted the path of business and startups, this view is quite encouraging.
Types of Company you can register to start a business in India
In India, you can register your business in the following categories:
1) Private Limited Company
A private limited company has restricted liability and frequently these kinds of the company have ‘Ltd’ following the company name. A good instance of this could be Green Construction Ltd. The proprietors of a private limited company are referred to as shareholders. Shareholders need to be encouraged by the company before they could buy a discussion of the business enterprise. A share is part or portion of a provider. Private limited companies pay company tax. A corporation tax is a tax upon the earnings of an organization.
One of the main drawbacks of founding a business as a private limited company is that there’s more paperwork to do since the company must register with Businesses House and file annual financial reports.
A partnership is a sort of company where a formal arrangement between two or more individuals is made who consent to function as co-owners, distribute duties for conducting a company and discuss the earnings or losses that the company creates. In India, each of the facets and functions of this partnership has been administered under ‘The Indian Partnership Act 1932’. This particular law clarifies that partnership is a connection between a few parties or individuals that have agreed to split the profits generated by the company under the oversight of all of the members or benefit of other associates.
3) Limited Liability Partnership
The Limited Liability Partnership (LLP) is seen as an alternative corporate business vehicle that offers the advantages of limited liability but allows its members the flexibility of coordinating their internal arrangement for a venture based on a mutually agreed arrangement. The LLP kind would empower entrepreneurs, partnerships, and professionals providing services of any sort of participation in technical and scientific areas, to create commercially effective vehicles appropriate to their needs. Due to flexibility within its construction and performance, the LLP would also be a suitable vehicle for smaller businesses and also for investment by venture funding.
4) Sole Proprietorship
A sole proprietorship could be described as the sort of business structure or a company or a company that’s owned, managed, and regulated by one individual who’s the only beneficiary for a variety of losses or profits and accountable for all risk types. It’s a trusted business type that’s fantastic to begin a small company, particularly in the first years of its performance. These company types are often specialized solutions such as beauty parlors, little retail stores, or hair salons.
5) One Person Company
An OPC is a separate legal entity with one shareholder. Section two (62) of the Companies Act, 2013 defines OPC as a business that has just 1 individual for a member. Part 3 of the Businesses Act, 2013 classifies OPC as a private business by subscribing to its title in the memorandum also it must obey the requirements of the act concerning incorporation. OPC isn’t allowed to perform Non-banking fiscal activities such as investments in securities of other businesses. Additionally, it may not be integrated as a Non-Profit Organization (NPO).
6) Section 8 Company
A company is known as a Part 8 Business since it’s registered as a Non-Profit Organization (NPO), i.e. as it’s the objective of supporting arts, trade, education, charity, ecological conservation, sports, science, and study, social welfare, faith, and intentions to utilize its earnings (if any) or other earnings to achieve those aims.
Also Read: Top 20 Manufacturing Business Ideas in India
11 Step to start a business in India
Not having the right strategy while starting a business can lead to a tricky situation. It is very crucial to have the right roadmap to start a business. You can consider the given guidebook to start a business in India.
Step 1: Choose field for starting a business in India
Your entire castle is going to be constructed based on your idea. The further your idea is more innovative and modern, the more you’ll stand out from other people. Analyze the potential of your thoughts. Once you encircled your idea, jot down its pros & cons. If the requirements are packed with your products and supplies are low. Your idea will surely work out. A field with low competition can be a better way to start a business in India.
Step 2: Earn experience
This is the base. Company isn’t something which is going to have triumphed in one go. You will need wisdom and patience and also patience, and you need expertise. Lack of experience in the field can be fatal for a beginner. Either educate yourself about the area and market or try to acquire a job in the same field to comprehend the basics and other areas of a successful business model. A lota starting a Startup of expertise will help you in building knowledge and a network of people. It will help you to start a business in India.
Step 3: Vision
Have to be ambitious to unleash the entire potential of your business. A business vision means its aims and how to accomplish these goals. Try to produce a roadmap for the company’s future. If your thought turns into something, what will be your next step?
Step 4: Make a prototype
Instead Of baiting your money & time on a large scale, create a small prototype. Invest a very little amount and prepare a tiny scale replica of your thought. A Prototype will help you to manage your findings and will attract new investors. For instance: If you would like to open a movie theatre, rather than installing 5-6 displays, initially it begins with a single display.
A prototype of a business is a business model but on a smaller scale. It will help you in saving your time and starting a business in India.
Step 5: Funding
Financing is always a hard job. Financing your business Might be trickier and may interfere with your business program. These are various ways to finance your business. It’s possible to use personal savings, company loans and also can approach venture capitalists. “Startup India “the initiative was first started on 16th Jan 2016 by the Government of India to help the job creators. Otherwise, it can be a setback for you and your business team.
Step 6: Location
Setting up a clothing store in a grocery market May Not be a Fantastic idea. An ideal location can create more earnings. Initially, you may set up a company in urban or suburban areas rather than metropolitan cities such as New Delhi or Mumbai. Metro Cities have a high cost of living and high labour too which may be an unnecessary burden on your finances. One person’s business can be started on your property. So home always choose the website which fits your needs. Due to cheap labour, it is easy to start a business in India.
Step 7: Legal Formalities to start a business
To run every business you need legal permissions and permits. Depending on the scale of your organization, it can change. Incomplete formalities can cause unwanted lawsuits and legal battles. Completing all formalities can be an exhausting job. It will simply take a long duration of time to get all licenses and permissions. Well, there are few online platforms available that can get your job done. Legalkart, vakilsearch, online legal India are few online legal advice providers. You could always seek out consultants from such platforms. You can also manage time from your program & can find all licenses all by yourselves.
You can create a digital signature of your business in India.
Step 8: Marketing
Marketing will help you in creating your new name. It will give you an initial exposure. Before people used to spend half of the funds marketing the item, didn’t they? Now, in the electronic era, marketing is much less costly than before. At a very low price, you can target a broad variety of audiences. You have to target the viewer who will be willing to pay you for your services. It’s possible to run your ads on Google, Bing, and various social networking platforms like Instagram, Youtube, Twitter, or even Snapchat. You can take help from a marketing pro.
Step 9: Digital Presence
Digital presence is a must to start a business in India… It may be used for new awareness, advertising, or customer care. It’s possible to reach a customer at any time. Young may begin a site or a societal media handle. For Example, Zomato is an Indian unicorn food startup that Started in 2008. Their staff is present on each platform to present their customers with 24*7 support providers.
The digital presence will help you to create authenticity and Authority of your brand. You can start looking for a customized email address. This strategy will come handier in doing B2B (business to business) and B2C (business to customer) business.
Step 10: Building Team
If you are doing one-person Business, at most you can go for a PA, otherwise, build a team that shares the same Eyesight as yours. Initially, you can hire freelancers or interns. Various online Platforms like LinkedIn, Upwork, or freelancer to look for interns, freelancers, or freshers.
To run a company easily all you need is a working team. Build a group that will not sink your startup. A great professional team can help you to reach your objectives and successfully you can start business in India.
Step 11: Grow Your Business
If everything goes smoothly, now you can try to scale up your business. Simply, you can multiply your prototype. Keep your expenses low and try to keep your cash flows positive. Later, you can list your company in BSE or NSE and can apply for an IPO. It can generate more funds and you can reinvest that money in your business.
Running a business is not a Cinderella tale, is it? You need to be focused every time some of in-commerce. We have tried to guide you through the process. A successful business is a reflector of trustworthiness, building products with credibility, and learning from your competitors. Provide the best you can and at affordable costs to your customers. Innovate your roadmap with time.
Starting your own business is like babysitting. You have to take good care of it. Treat the business right, later it will look after you.
For more financial and business advice, stay tuned with us.
Also Read: Top 8 Reasons For Startup Failure In India
Frequently Asked Questions
What is the best startup business in India?
The most profitable startups in India are food, technology, home delivery, EdTech. Lately, few startups of these fields have earned the title of “unicorn startup”.
Zomato and Oyo are some of the most profitable startups in India.
Which is the fastest growing business in India?
Health care industry, Information Technology industry, food industry, education industry, transportation business, delivery services are the fastest growing businesses in India.
What business can I start with Rs. 10,000 in 2021?
Frankly, that’s a good amount of money to start a business in India. You can start your ecommerce store, fashion and lifestyle shop, affiliate marketing, food stall, food delivery services, and many more.
Ques: What businesses are in demand in 2021?
There is a high demand for outsourcing business, sale of handicraft artifacts, organic foods, yoga centers, and food stalls in India. To start a business in India, always look for the field with high demands and low supplies.
What is “Startup India”?
Startup India is an initiative launched by the Government of India to help the growing startups and help Indians to start business in India.
Any startup which has an annual turnover of less than Rs. 100 crores are eligible for the scheme. Government offers many facilities to the startups like self-certification, tax exemption, single-window clearance from mobile apps, patent protection, relaxed norms for public procurement, an incubator set up, networking options, government tenders.
How to avoid failure in a small business?
If possible, never take a loan. Try to avoid going into debt. Instead of a loan, you can reinvest your earnings into the business. For small businesses, managing money is the most difficult task. If you have a solid business plan, an innovative idea, and a debt-free startup, in that case there are very low chances of failure.