How do I start a brokerage firm in India?
First things first, what is a brokerage firm?
A place where investors and traders go for buying and selling stocks. You can think of it as a platform being provided to the traders and investors to interact. Brokerage gets commissions on all transactions where stock is being bought.
If you want to open your brokerage firm in India, you need to plan out the strategy, have documents and patience. Here are a few initial steps to start your brokerage firm.
- The first thing to do is to plan out the expenses. You will have to make a step-by-step plan of every step to be taken along with the expenses starting from registration to the firm’s opening.
- Choose your target market. Whether you want your broking business to be a luxurious venture for super-rich individuals with a high net worth or for small business that guide new investors by acting as a business advisor is your choice. Even some brokerage firms have started giving clients financial advice these days. They buy and sell shares for them and tell them where to invest, how much and where to save.
- Decide on the revenue. Based on your target market and your expenses, you should figure out what to charge your clients. You can also charge for the financial advice you give or do it for free. It is your choice.
- Get an office space enough for the number of employees you plan to hire in your initial stage.
- Take care of all the legal formalities. The SEBI (securities and exchange board of India) issues a mandatory registration certificate. Some other approvals and criteria need to be met too.
Every business comes with a lot of risks. Brokerage, in particular, comes with many risks and formalities. It is hard for you to carry it all out on your own. DBPL is one such company that helps you to open a company in India and complete all the tasks related to it. From research, feasibility, registration to strategies, land and everything else is taken care of. This way, you can have more time to think about things that matter more like a business strategy, employment of employees, getting your office space ready, etc.