In India, many millennials are enamoured with startups these days. Many of them already have a concept in mind or are working on something that fits their passion and fills a market gap. To be honest, there is a lot of competition, and to succeed, you must be extraordinarily competent at what you do. So, if you’re one of those entrepreneurs, this article will walk you through the process of starting a new firm in India.
Before You Begin Working on Your Startup Concept
Before we go into the ‘how to establish a company’ part, there are a few things to consider. Before you begin working on any company concept, you must establish three things.
- Your company concept should excite you, and it should be useful enough to fill a market niche.
- You’ll have to put in a lot of effort, and it’ll probably be more difficult than you anticipate.
- Accept setbacks and don’t quit up when things don’t seem to be working.
If you agree with these three points, let’s look at the step-by-step procedure of forming a new company in India.
STEP 1: Plan your business
As an entrepreneur, you must have a well-thought-out strategy. It will assist you in mapping out the details of your company and uncovering some unknowns. The following are some key points to consider:
• What are the starting and continuing costs?
• Who is your intended audience?
• What is the maximum amount you may charge customers?
• What will you call your company?
STEP 2: Form a legal entity
The sole proprietorship, partnership, private limited company (PVT) and corporation are the most popular business structures. If your hydroponic farm business is sued, forming a formal business organisation such as an Ltd or corporation prevents you from being held personally accountable.
To register your business, you must first gather the necessary papers, such as a copy of your PAN card, voter identification, Aadhar card, Registered Office Address Proof Documents, and so on. Get your company’s incorporation certificate by completing the MOA (Memorandum of Association) and AOA (Articles of Association). Then you must file an INC with the ROC (Registrar of Companies). Finally, apply for DSC (Digital Signature Certificate) for Directors.
STEP 3: Register in Startup India Program
You may register your firm on the Startup India website and take advantage of several of the Indian government’s programmes. The definition of a startup was amended by the Indian government in 2017, and the total age limit for businesses was raised from five to seven years. Being a part of the Startup India programme would make it easier for you to secure funding and will also provide you with certain tax benefits for your business.
STEP 4: Register for taxes
In India, startups are exempt from paying income tax for the first three years, but they must be approved by the Inter-Ministerial Board to receive these benefits (IMB). Companies that have registered with DIPP are exempt from this requirement because registration is sufficient to get the advantages.
STEP 5: Get subsidy
The national and state governments in India have subsidised capital expenses for farmers who are ready to invest in hydroponics. Furthermore, each state’s specific subsidy is different. The Maharashtra government has announced a 50% incentive for farmers who use hydroponics.
STEP 6: Get Financial Aid
Getting your firm funded is vital, but being able to use that money wisely is even more crucial. You should start putting together a startup budget that is well within your means right away. Banks are still considered by many entrepreneurs to be their first choice and a safe option for startup finance. Several banks have opened up special funding alternatives for SMEs and startups, in response to the increasing trend of startups in India. The Indian government also funds startups in India through a variety of grants and initiatives. Mudra loans, the 10,000 crore Startup Fund, and other government initiatives supporting entrepreneurs in India.
STEP 7: Set up business accounting
Understanding your business’s financial success requires keeping track of your numerous expenditure and sources of money. Maintaining precise and complete records also makes annual tax filing much easier.
STEP 8: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down. The procedure of acquiring a licence in India differs from one type of business to the next, depending on a variety of criteria such as the number of workers, the sector, the kind of business, the location of the firm, and so on. Director Identification Number (DIN), GST Registration, and State Business License, on the other hand, are licences that are required in all states.
STEP 9: Get business insurance
Insurance, like licences and permits, is required for your business to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being. There are a variety of insurance plans designed for various sorts of organisations with various risks. If you’re not sure what kinds of dangers your company could encounter, start with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
STEP 10: Define your brand
Your company’s brand is what it stands for, as well as how the general public perceives it. A strong brand will set your company out from the competition. Some of the most well-known branding firms in India are xVS Creations, Ascent Web Portal, DesignHill, and Indesign Elements. They can assist you with all of your design requirements and deliver high-quality outcomes.
STEP 11: Create your business website
The next stage is to construct a website for your business once you’ve defined your brand and designed your logo. While developing a website is a necessary step, some people may believe it is out of their grasp due to a lack of website-building skills. While this may have been a valid concern in 2015, online technology has advanced significantly in recent years, making the lives of small company owners much easier.
It may take some time to accomplish all of these tasks in the beginning. So, you’ll need to be patient, and it’s also a good idea to have a complete understanding of all of these procedures so that you can go on with your activities. In India today, many huge corporations were founded as startups a few years ago. Remember that to succeed at this, you essentially need to have a startup mindset, and it will take a significant amount of time and work to see results.