Startups in India have been around since the early 2000s and they have only grown in numbers since then. India is seen by many as one of the fast-emerging countries when it comes to startup culture. There are numerous success stories on the startup front and this is just the beginning. The Government of India, recognizing the potential to create wealth and jobs through entrepreneurship has launched several initiatives and programs aimed at fostering a conducive startup ecosystem. Through various grants, schemes, loans, tax and regulatory reliefs, the government has provided a much-needed fillip to the startup culture in India.
The Indian startup space has been buzzing with activity and investments from domestic as well as international investors. This has further encouraged more entrepreneurs and budding new companies to come up and try their luck in this game. The journey of Indian startups has been a remarkable one and it looks like there is more to expect in the coming years. With top international investors showing interest in the startup culture of India, the and more potent and the potential for growth looks endless.
In the current business world, startup companies are thriving in India and have become the standard for innovation and entrepreneurship for the ever-changing digital age. Aspiring entrepreneurs in India should be equipped with the right tools, resources, and knowledge to start a successful and sustainable business. Here are the steps to set up a startup in India:
1. Define Your Business Plan: Your business plan should describe in detail the mission of your startup, define the target customer, determine your financial needs, and detail the steps you must take to successfully launch and maintain your business.
2. Determine Capital Requirements: Calculate the costs to bring your startup to life. Factor in inventory, office space, personnel, and other overhead costs. When possible, build a network of seed investors and crowdfunding platforms to raise capital.
3. Choose the Right Business Structure: Select the right business structure for your startup such as sole proprietorship, partnership, Limited Liability Company (LLC) or corporation. A proper business structure provides legal, tax and financial advantages.
4. Choose a Business Name: Select a name that is legally allowed, easy to remember, and is relevant to the industry in which you will be operating.
5. Register your Business: Register your business with the Registrar of Companies. This will also enable you to receive a PAN card for your business as well as a 12-digit company identification number (CIN).
6. Obtain an FSSAI License: If your startup is in the food industry, you must obtain a Food Safety License from the Food Safety and Standards Authority of India (FSSAI).
7. Find Your Niche: The first step in setting up a startup in India is to determine your startup’s niche. Do you have an innovative idea that could revolutionize an industry or task? Are you able to leverage existing trends and provide a unique solution to an existing problem? Ask yourself these questions and more to decide whether you have a viable idea for a business.
8. Open a Bank Account: Open a bank account for your business. This will ensure that business income and expenses are kept separate from your personal funds and is an essential for earning profits if your business venture succeeds.
9. Register for Taxes: Register your company for Goods and Services Tax (GST)/ Income Tax portal/ Import and Export Code (IEC)/ Central Excise Duty (if you are in petroleum product). You may also need to obtain an income tax registration certificate under section 80-IAC.
10. Register with the State Labour Department: If you plan to hire workers, register your company with the state government Labour Department.
11. Deal with Insurances: Look into investing in Business Insurance, Employee Liability Insurance and Employer’s Compensation Insurance.
12. Obtain Factory Clearance: If you plan to manufacture goods, obtain the appropriate state-level Factory Clearance Certificate.
13. Talk to Your Chartered Accountants: Get a qualified chartered accountant to help you with filing taxes, book-keeping and financial project reports.
14. Set Up an Online Presence: Set up a website for your business. The website needs to be well-designed to ensure great customer experience. Make sure you have a well-optimized blog to frequently publish content and attract potential customers.
15. Start Reaching Out: Networking is key for any successful business. Organize meetups and events to promote your business and create visibility for your startup.
Setting up a startup business is important to plan extensively, present a competitive business plan, determine and meet legal requirements, develop a marketing strategy, protect intellectual property, and invest in your team and technologies. With adequate research and an effective strategy, successful startups can be created. By following the steps and advice outlined, entrepreneurs have the possibility of establishing a long-term prosperous business. These steps will help you set up your startup in India smoothly. With a well-defined plan, determination and the right support system, startups can rise to success.
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(Author can be reached at email address casharma.sharad2000@gmail.com or on Mobile No. 9990365673)
Disclaimer: “Neither this article nor the information contained herein shall in any way be construed as forming a contract or shall constitute professional advice required before acting upon any matter. CA Sharad Kumar Sharma has taken all due care in the preparation of this article for accuracy in its contents at the time of publication. However, no liability shall be accepted by him in the event of any direct, indirect or consequential damages arising out of or in any way connected with the use of this article or its contents. “
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