Once you decide to start your own small business, there are a lot of factors you need to think about. One of them is definitely the country where you plan to open the company. Have you considered doing it in India? If not, we hope this article will convince you that it’s a good idea; and if this was your plan all along, then here is an informative guide on everything you need to know about starting a business in India.
Come up with a solid business idea
The first thing you need to work out is the type of business you want to start. What can you offer to the world? Is it a product or a service? Which industry are you interested in? What do you wish to achieve? How many employees do you need? Which business structure will you opt for?
Once you have all of these points figured out, put them on paper. This can serve as a business plan. Your next step is determining whether this sort of business would be successful in a place like India. This is where market research comes into the picture.
Conduct thorough research of the market
In order to succeed in any market, you need to understand it. That is why you need to conduct intensive research and try to find any gaps which you could fill. Think about the problems you could solve for your potential customers. Observe the market carefully and see what needs to be fixed – maybe your company is capable of doing exactly that. However, keep in mind that you should not start this endeavor until you are completely sure you are able to bring something new to the table.
Before you decide to start your company in India, you first need to understand how fierce your competition is. Is the market oversaturated? Is there a need for your service/product and who will your target audience be? Depending on your funds, you can open all sorts of businesses. For example, a startup that deals with property management can be quite successful in India. Furthermore, consider a food delivery service, a housekeeping business or even a company for cleaning water tanks.
Choose the best location
Choosing the location of your company can be a bit tricky as it might depend on what your company does and where the majority of your clients are. In order to run a business in India, you must register with the local administration, but other than that, you can start it from home, use a co-working space or have your own offices.
It comes as great news then that a study by JLL India revealed that the office sector is rapidly evolving, meaning that you will easily find the right space for your needs. Moreover, regardless of whether you work in IT, finances, construction or healthcare, you will be glad to hear that the importance of sustainability and eco-friendliness of buildings is not neglected, which is another big plus for this country.
Work out your finances
Once you know what your business’s purpose will be and you figure out its location, you need to see how much money all of that will take. Look into property prices as well as what it takes to create your product or perform your services.
In India, most businesses are launched by self-financing. However, you can always look into various loans offered by banks and online, join a crowdfunding platform or search for venture capitalists. Make sure to carefully examine all your options and understand what they mean for your company.
Register your business
To start a small business in India, you have to be Indian or form a partnership with a local entrepreneur in case you are a foreigner. However, the good thing is that you can register a business online on the Ministry of Corporate Affairs’ website.
When registering, you also need to decide on the business structure. There are several options available, with LLP and Private Limited Company being the most common. Make sure to consult an expert to see which option would work best for your company.
Don’t forget about taxes
The company structure plays a role in your taxes, so it’s important to choose the right one. Furthermore, you need to get a Taxpayer Identification Number (TIN) and a Permanent Account Number (PAN) from the Income Tax Department. You will be allotted the number within 30 days and they are quite useful when you have to pay taxes.
So, if you decide to start a business in India, make sure to find a trustworthy partner and look for an expert who can help you with the legal aspect of this endeavor. After these crucial steps are done, you can focus on cash flow, marketing and customer service.