How to Start a Business in India?
The Changing Indian Mentality towards Business
The culture of becoming an entrepreneur in India is rising day by day. In recent times the queries for opening a business in India have increased tremendously. People are moving ahead and opening a company in India to create endless opportunities for themselves. Rather than going for a job these days a lot of people opt and end up opening a business in India to have their own independent source of income so that they only rely on themselves. With the emergence of technology in India, it has become really easy for anyone to start and manage their business in the country. It won’t be wrong to say that the current time is the best for anyone who is looking forward to opening a company in India or even opening a branch office in India.
As the best business setup services provider in India, we are going to guide you through this article on how one can start a business in India and grow it steadily.
Plan Out Every Detail on Facts and Information
Before opening a business in India, you need to define a plan and strategy for your potential business. The planning activity doesn’t necessarily have to be something too complex but rather can be as simple as stating your vision for the company. The things that follow this step in your plan for opening a company in India can be market analysis and projection of financial statements. One thing that people that have experience in opening a business in India are adamant about is that planning obviously increases the chances of success in business by avoiding and mitigating mistakes.
In case you don’t have a ballpark or estimation of business idea, its success etc or are confused about it, the best thing to do is to research online about various possible businesses that one can have. Our team at DBPL will guide you in this area and also take into account and brainstorm on your thoughts and opinions. Make sure to research and consult before opening a company in India. DBPL will consult, guide and handhold you in this endeavor.
Choose your Entity
Choosing a business entity is like choosing a vehicle that you would travel on while you are on a road trip. Your first step should be to decide the type of business entity that you want to be as it will make the process simpler. If you plan to keep your business as a small-scaled business entity, then choosing an LLP i.e. Limited Liability Partnership would be a good choice. On the other hand, if you plan to be a large-scale business, going with the Pvt. Ltd. i.e. Private Limited Company would be a good decision. If you decide to go with the LLP entity for opening a company in India then remember that you will need at least two people to act as partners. There will be some documents that will state your residence address and photo identification that will be required by the authority when registering.
Once you are done with the task of registration, bank account opening in the name of your company is the next important step. In recent times, the Government has been promoting people in opening a business in India and hence made it really simple for individual business owners, LLP companies, and even private limited companies to open their bank accounts in the banks. You only need a PAN card and Certificate of Incorporation to open a bank account in the name of your company. There could be some other formalities related to tax registration that might be required by some banks when it comes to opening a bank account in the name of your company make sure that you weigh all the pros and cons of different banks and choose the best one that fits your needs while keeping the registration process simple as well.
Taxing is an important aspect of any business and you need to make sure that you do all the necessary tax registrations based on the type of customer requirements of your business. For making the process simpler, we have compiled the list of tax registrations that you will need to do based on your income:
GST: Required if the turnover is above 20 lacs
TAN: Required when you are planning to hire someone or dealing with some vendors
ESI: Required when the number of employees in your Firm crosses the mark of 20.
We hope that we did a good job of breaking down the process of starting a business in India in a simple explanation for your understanding. We hope that if you follow these steps with proper research and commitment, your process of opening a company in India will be done in an efficient manner. If you would like to know more about starting a business in India, please get in touch with us today.