How to start business in India?
75Hubmob Weekly: Small Business
Start business in India
How to start a business in India?
Starting a business in India is easy, especially if it is a small business. India requires lesser formalities to start a small business than many other countries.
Once you have decided to start a small business in India you have to complete some formalities, legal and statutory.
First of all you have to choose a name for your business and open a bank account (Current account) with the name. You have to provide a genuine address of your business. Evidence of your business address must be supported with relevant documents such as ownership deeds (if you are the owner of the premises) or an agreement of rent or a rent receipt.
You can also furnish your electricity or telephone bill as supporting evidence. You must verify your identity by furnishing your identity verification documents such as passport, voter ID card, ration card, driving license etc to register your business in India.
You need a VAT registration to buy or sell your goods in India. You can have a VAT registration for a state (province) and / or for Indian territory. You need to provide a bond of small amount as security deposit.
Please do not forget to prepare a business and finance plan
Sky is the limit in Indian business
Plan your business
Business is not just buying or selling your goods. Business is altogether a different thing than a mere financial activities or transactions. Business is a system or a set of systems required to earn profit by satisfying needs of your clients.
You have to make a plan for your business which is relevant to your business idea. Planning is the most important and vital part of your business. There is a well said proverb that if you fail to plan you are planning to fail. So, plan your business well.
PDCA: Plan, do, check, act
PDCA is a good way of making your business effective and efficient. Plan your business and then do according to your plan. Check its suitability and viability. Change or modify your plan if necessary. Do it responsibly. Go with minute details while checking your plan. Act upon your checked plan.
Business credit
Your business needs credit. Build business credibility. It often starts from your personal credit. However, business credit is different from your personal credit. You may have your personal credit and personal credit ratings but you have to build your business credit and business credit rating gradually.
Business credit and business credit rating will help you getting finance from banks, financial institutes and individuals. This will help you in expanding your business.
Your credit is not limited to financial aspects. You have to build your credibility among your clients especially customers. Your business will grow with satisfied customers. Provide your customers with quality products and services. Maintain timeliness. Timely supply is a keyword to modern business.
Your business can not grow only with quality goods and services but your goods and services should have competitive price. You have to remember that large numbers of other suppliers are also in the same business and you have to compete with them. Your efficiency will help you in growing your business.
This is true for India and anywhere else.
Listing local business in Google
Marketing and advertising
Marketing is another keyword of present days business. It is not enough to manufacture or procure quality goods in modern businesses. You have to market your products and services well. You have to find customers and convince them to buy you products and services. It is vital for your business. You have to know taste of your clients and supply products and services according to their choice and needs. It is better to have an in-depth knowledge of social and cultural back grounds of your customers. Often these effect customers' behavior along with their financial positions.
For example, if your business is related to food and beverages and you are working in north India, you can easily sell Gujiya or Rasogolla. However, it is difficult to sell these items in south India where people prefer Idli or Dosa.
It is better to know financial position and budget of your niche customers. You can adjust rates of your products and services according to budget of your clients.
Advertising is also a necessary item in your business plan. It is very difficult to run and grow a business without advertising in modern days. There are plenty of ways to advertise your business. You can advertise your business in India through print and electronic media. Internet advertising is also becoming popular in India. However, advertisement is becoming expensive and it is difficult for a small business to cope up with high budget of advertisement.
You can use several means of free advertising in internet. One of these are registering in Yahoo and Google local businesses for free. There are several other sites which offer free listings. You can also advertise your small business through e-mail and SMS as internet and mobile phones are popular tools of communication.
It is better to have an online presence. Your website can do the work easily and in a cost effective way. A well designed and optimized website can attract visitors and make them stay there. Your website, representing your products and services in a user friendly manner, can turn them into customers. This will promote your business and boost sales.
You can go with mouth publicity also. this is the best way of advertisement for small businesses with small or no budget for advertisement.
Do not forget that a satisfied customer is your best ambassador. He brings customer to your business.
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Yes, it is possible.
HELLO JYOTHI,
I AM PLANNING TO START A ECOMMERCE BUISNESS FOR SELLING MENS WEAR ,FIRST IN SOUTH INDIA THEN TO SPREAD ALL OVER INDIA AND OVERSEAS.
I HAVE LESS CAPITAL ,BUT READY TO GET MORE PEOPLE IN MY BUISNESS FOR PARTNERSHIP TO INCREASE MY CAPITAL.
SO IS THAT POSSIBLE TO GET REGISTER E COMMERCE BUISNESS WITH LESS CAPITAL...PLEASE MAIL ME
JAMSHEES123@GMAIL.COM
07738846527
Informative article, nice work. India would be a nice place to live and run a company.
very informative article. Thanks you sir. I'm planning to start own business in india.
Dear sir,
i want to start new business,the business is that better security peovide to the differnt differnt compnay, in india
I think it is very difficult. but i want to do it..i don't know anything about how to take that all those things licenses, permits, policies, restrictions Bond and Insurance for security business
>> How to set up this business
please send me as soon as possible
i will wait your reply below this email add.
inamdar.b.pawar@gmail.com
sir i have asked that which business should i start i have no idea but i want to start any business and i have only 10000 rs. ilive in delhi.
my e-mail:rahul.rajeev02@yahoo.com
hello sir i want to start a business with little bit amt. like 10000 or 20000 which type of business should i start i live in east delhi
Pl send your details.
Hi Ankit,
This depends on many things such as your educational and family background, financial condition, location etc. Pls feel free to mail me.
Jyoti Kothari
Sir
I want to do a small business kindly advise me that what i do in which field.
Ankit
hello, i would like to open a beauty parlour in Dehre Dun, Uttrakhand.
I have a business management degree and have also completed a health and beauty course in England. I wish to open a small business.
How difficult will it be for me to do so. I have the financial means to pay for the building and equipment but am confused on the legal side. Being a british national would i be the same procudure to open a beauty parlour has it would for a indian national?
HIII... I WANA STARTING A SECURITY COMPANY IN INDIA. PLEASE TELL ME THE SCOPE AND LIMITATION OF IT.
I guess its the right time to start a business in India when the world is in recession. Business in India is a good idea for serious investors.
Hi Jyoti,
Thanks for posting such an article.
I am planning to start an ecommerce web startup selling t-shirts in india.
I dont have much capital. Is it necessary to register a company to sell t-shirts via my ecommerce site in india?
I would appreciate your advise regarding this.
Thanks,
Raja
Firstly I would really appreciate Jyoti Kothari for writing such post.Thanks to Internet & e- governance that now starting a business or registering a company has become very easy. Businessmen can either register a firm (proprietorship, partnership, limited liability partnership firm ) or company (private limited or limited)with partial assistance of a Company Secretary or a certified Chartered Accountant. This is because the initial procedures like DIN (Director Identification Number) & Digital Signature can be registered online but application for company name approval, drafting of MOA ( Memorandum of Association & AOA (Articles of Association), paying company registration fee based on authorized capital can't be done without taking a help of any company registration consultant. You can also get the complete procedures to register a company here http://www.companyregistrationdelhi.org
Hi,
You have to contact some lawyer for detailed process. However, it is easy to start business here. You need capital according to size of your business.
You can mail me for more details.
Dear sir
i lived all my life in england, now i am thinking of returning to india and i want to start a business in india. what are the legal requirements to start a business and how much capital would i need to start a unisex fashion botique. how do i find the wholesalers of the apperal concerned are there any taxes of importing garments what is the percentage of tax , what are the legal documentation costs.
All necessary procedures are written in he hub in general. Pl contact your lawyer for specific info.
Thanks for comment.
hi sir..i m very interest to start water plant business..plz tell me what is easy process,which licencess is necessary..
my mail id : sreedhar_444@yahoo.co.in
Dear Sir,
I am a student form America looking fowerd to India. What do you suposed to invest it? I would be looking fowerd to move to west India.
Email Namanpatel@live.com
Hi Soumav,
Registering for E commerce business has similar processes as other business. You need an export license and RBI code to sell overseas.
Thanks for your comment.
Jyoti Kothari
hi,
I want to start a ecommerce buisness such as ebook selling in india and internationally. In this case where should i register for this buisness and what could be the tax obligations.Help would be appreciated.
Hi Patbess,
Thanks for your comment and compliments.. I am obliged.
Jyoti Kothari
Thanks for a really informative hub. It is really good to read about all the details you need to know about to start a business in India. Really great videos as well!
DEAR SIR , YOUR COMMENTS AND DIRECTIONS ARE REMARKABLE. A GOOD ADVISOR IS CONSIDERED A BEST FRIEND. THANKS AGAIN . ONE SMALL ADVICE , WHAT WOULD YOU ADVICE FOR A TRAVEL AGENCY BUSINESS IN INDIA . I HAVE 27 YEARS OF EXPWERIENCE. KINDLY ADVICE ME . THANKS AGAIN . MY MAIL ID IS gilkrs@yahoo.com. REGARDS. SUBBU
Hi,
Vinoth,
Thanks for sharing and commenting. You have not left any link to reply. Please leave your e mail address or contact me.
Thanks,
Jyoti Kothari
Hi, I do have extensive network with MD’s of big corporate in and around Chennai, Tamilnadu. I would like to start a security agency in order to provide guards for commercial and residential properties.
I seek guidance and formalities involved in starting up the security agency company. I need information in obtaining license, insurance, and certification.
Hi SPK,
I have already provided general info about starting business in India. Please contact your attorney for specific info.
Thanks,
Jyoti Kothari
I am an NRE and started a boutique cum beauty treatment centre in Jharkhand . I have registered by business in Municipality and my wife is looking after it. We have just started it. The registration is in my name. Please guide me what are the legal formalities to continue the business. like taking Sales Tax No. VAT, Service Tax etc.
Thanks
Hi Ramesh,
Best of luck. Thanks for visiting and commenting on this hub.
Jyoti Kothari
hello,sir,i am ramesh student of b.com(a/c)&also doing charterd a/c and i am thinking of doing business in the field of transport as well as professolanise service like expert in security mkt
Hi Skyfire,
There are not too many documentation and law to start a business in India. I have simply written down those in the first para. You can ask any lawyer who will complete the formalities with a small fee.
Thanks,
Jyoti Kothari
I would like to read about stuff like documentation and laws which are for new business or startups. Any input on that one will be appreciated.
Hi Chinweike,
I agree with you. Customer relationship is even more important than getting finance. If one has good customer relationships, funds started flowing towards him or her.
Thanks for your comments.
Jyoti Kothari
Is starting business so easy in India? I thought it is very difficult. Thanks for nice info.
There is one point you made that i love, it made me realise that i am not alone in this thinking."Your credit is not limited to financial aspects. You have to build your credibility among your clients especially customers. Your business will grow with satisfied customers" This is to say that Credit goes beyond the financials, customer relations and credibility is taking a noticeable place in the ranks of business success factor
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GAURAV 2 months ago
Dear Sir
My Self Gaurav Sharma(Assi Network Admin)
Now Complate BCA and Apply for MCA from SMU
Now i m working in IT Sector Army Collage Noida
But Now i m start a small bussince that fine and frist i m start a Computer AMC Contract in School I will starting the School
plz Guide Sir
Thanks Regards
GAURAV SHARMA
Assitant Network Administrator
ARMY COLLAGE NOIDA
09999443663