A person determined to start a new business from scratch requires a splendid idea, lots of effort, and a decent amount of paperwork. But that is all achievable if one wants to reach great heights in life, you just have to make up your mind and take the first step towards your dream business.
Though there is a lot of hard work in the process of setting up a business, becoming a business owner has a few unique privileges associated with it. Business owners are free to determine how they run their business; have flexible hours, and have the freedom to create the work environment and culture that feels best for them.
This article consists of steps to start your own business i.e. from basic idea to setting up to launch, all that you need to know, you will find here.
1. Select An Impressive Business Idea
Whether you’re trying to open a global startup that is radically disruptive or just another warm little space in your community, every business starts off with a really good idea. You have to know what it’s going to offer and who it will serve, to get the ball rolling on starting your business.
2. Conduct Thorough Market Research
You need to gather data so as to decide the future success of the company: that is what market research is all about. It consists of information regarding economic trends as well as consumer behavior and identity in an effort to forecast whether your business idea has a place in the current market or whether you should make some changes to your offerings.
It can give you an idea regarding how similar businesses are doing, how they perform, and how you may serve your target clientele effectively: in other words, it provides the data that “justifies” the need for your business. This data will add quantitative value to your idea, which is going to be important in writing your business plan and seeking funding for your concept.
3. Make a Business Plan
Another major step is preparing a business plan, which serves as the foundation for your business. It states what the business is going to be, its products, and services, and the way the business will operate and grow in the future. It is, therefore, written for obtaining funds from any traditional loan or by venture capitalists. Remember that it should also include the marketing part that will make it all a sound basis for promoting its products and services to its target market.
4. Build a Brand Identity Around Your Products and Services
Create business logos, cards, and letterhead templates. These items build your company’s character and enable potential customers to find and remind them of you.
You are required to create a website and social media accounts for building your brand and communicating with your audience. Such is going to be a first good opportunity you have to impress customers and prospects.
Finally, ensure that you create all the necessary documents, like contracts, service agreements, and invoices, so you will be able to bill your customers easily and keep track of their payments and records.
5. Choose Your Business Structure/Entity
Selecting the type of structure of business for starting a business in India proves vital. It will determine the extent of personal liability, tax obligations, and capital-raising opportunities available.
- There are five key types of business structures:
- Sole Proprietorship
- Partnership
- Limited Liability Partnership (LLP)
- Private Limited Company
- Public Limited Company
6. Register Your Business Name
Deciding to register your business is what will bring the whole enterprise into existence, making it an actual legal entity. Register the business name with the Ministry of Corporate Affairs (MCA) if private limited or LLP; for other types, register with the relevant local bodies. It becomes important that your business is registered when you want to start banking operations, deposit money into an account in your business name, get business licenses and application permits, and legally start operations.
7. Get DSC, EIN, GST, Licenses, and Permits
Digital Signature Certificate (DSC): Digital Signature Certificate is required to electronically sign documents while filing forms with the government authorities like the Ministry of Corporate Affairs (MCA) and the Income Tax Department.
The Employer Identification Number (EIN) and Permanent Account Number (PAN) are numbers that correspond to types of tax identification. These numbers are issued by the Income Tax Department for your business. The authority thus granted is invariably useful to an enterprise, as it will be needed for filing tax returns, opening a business bank account, and various other financial purposes.
Goods and Services Tax (GST) Registration: A business needs to get registered for GST when its annual turnover exceeds ₹40 lakh or ₹20 lakh for service providers and is doing any inter-state supply. Registering enables collecting and paying GST on goods or services sold and also allows claiming input tax credits. One has to register on the GST portal to get his/her GSTIN (Goods and Services Tax Identification Number).
Licenses and Permits: Based on your business, the industry it deals with, and the location where it is situated, you might require several licenses and permits to operate legally. The following discusses some common licenses:
- Shop and Establishment Act Registration
- FSSAI License (For Food Businesses)
- Import Export Code (IEC) (for international trade)
- Profession Tax Registration
- MSME (Micro, Small, and Medium Enterprises) Registration
Other Industry-Specific Licenses:
Pollution Control Board Clearance is required for industries or manufacturing enterprises.
Real Estate Regulatory Authority (RERA) Registration for the real estate developers.
Follow the Bombay Shops and Establishments Act for any business in Maharashtra.
More Compliance Requirement
Employees Provident Fund (EPF): Registration with the EPF Organization is compulsory in case you have 20 or above employees.
Employees State Insurance (ESI): Compulsory for businesses with more than 10 employees in some states.
8. Open a Business Bank Account
Opening a business bank account is one of the most important things needed when starting a new business in India. A business bank account helps to keep personal and business finances separate, which helps in doing accounting and tax filing as well as making financial management easy. Use company registration documents and EIN to open a business bank account in the name of the business.
9. Get Business Insurance
Different types of business insurance will shield you and your business when any unexpected incidents occur, including accidents, theft, damage, and lawsuits. However, you much more significantly require insurance that fits the kind of business you run and the way you intend to run it.
Usually, an insurance agent can help in the assessment of risks and identification of the type of insurance product that best fits the business as well as assisting in meeting one affordably within budget and coverage needs.
10. Set Up Accounting & Seek Finance
You might want to get an accountant, or maybe handle the financial side of things yourself using a small business accounting solution; either way, keep proper account of all business outgoings, payments received, invoices, accounts receivable/accounts payable, etc. This is also to make sure of timely tax filings, thereby avoiding penalties. Finally, if you lack sufficient cash at startup for the business, you should look for funds from banks, investors, etc. Most probably, you will want software or online tools so you can keep a close eye on expenses, invoices, income, inventory, and administrative matters.
11. Get Your Workplace Ready
In addition to meeting city zoning requirements for home-based businesses, the majority of non-home-based businesses will require office space. Get your office outfitted with furniture and equipment in case you’re starting a new business. You must keep in mind that one must follow the legal recruitment and registration procedures for employees with the Employees Provident Fund (EPF) and Employees State Insurance (ESI) schemes.
12. Prepare for Launch
As you get close to your launch date, you will have to formulate a marketing strategy to build brand awareness using digital marketing, social media, and even traditional advertising by organizing local events, etc.
You are, by following the above-mentioned steps, almost in the condition of launching a successful and legal business in India in 2025.
