Entering into the business world is a dream for many. However, it is not as fascinating as it may sound. The initial period of obtaining the required licenses and completing the formal customs is one big chore. However, things are changing now, and individuals with strong business ideals are stepping forward to make the best of this booming world. Planning and starting a business are overlapping constructs as the former relates to all the thoughts and arrangements made for the venture while starting a business involves more formal and legal works. Hence, this article here divides the two parts and mentions how to get started with the process.
Planning business in India
One of the biggest challenges of starting a business is to identify the starting point. Mostly because of this reason, most entrepreneurs fail at making a reliable and thorough business plan. A business plan answers questions like what is the business about, who will be potential consumers, who are the rivals, how to carry out the regular operations and various other. Hence, before planning it is important to keep the below-mentioned points in mind.
What is the idea behind starting this business? What does one want to do with the business and why? How will one address or fulfil the problems or needs of the customer with their business? etc. are the questions that one needs to ask while planning.
It is important to be thorough with all the important details about the venture that one is going, to begin with. Lack of knowledge is often the reason for many startups dying in their first year and gathering all the information before beginning is an important step that should not be skipped.
Budget and finance
Deciding on a monthly budget is important as it will allow keeping a realistic account of expenditure to be made and the revenue that should come or will come as per the sales. Keeping expenditure limited is a smart step and increasing investment gradually with increase in sales is a good idea. Budget and finance also involve hiring the right people for one’s enterprise, looking for an ideal yet pocket-friendly office space etc.
Utmost attention must be paid to the promotion strategies to get customers and sales. Marketing strategies that are most efficient as well as pocket-friendly must be employed.
Starting a business in India
There are two procedures to start a business in India. The first procedure involves obtaining Digital Signature Certificate from Ministry of Corporate Affairs (MCA), authorised agency, by submitting necessary official documents like PAN card, voter id card etc. The other procedure involves preparing INC-29, which is required for allotment of Director Information Number (DIN).
It is the number through which MCA identifies the directors of the company. It is granted on the submission of scanned copies of PAN card, photographs, and driver’s license/voters id/ration card.
Reserving company name
This process is carried out electronically, and individuals can check the availability of the name on the MCA 21 website. One can submit a maximum of 6 names and once selected; the name appears on the website.
Memorandum and Articles of Association
The Memorandum of Association (MoA) and Articles of Association (AoA) are attached to INC-29 for sign and stamp from the superintendent.
Registered office verification
The details of a property which could be a commercial space or a house of director need to provide with a copy of the rental agreement along with a NOC from the owner (if rented property) or sale deed (if owned).
Certificate of Incorporation
After online submission of e-form 1, e form 18, and e form 32, on the website of MCA, one copy of the MoA and AoA, with the forms 1, 18 and 32, original name approval letter, consent of directors, and stamped power of attorney needs to be submitted to the Registrar of Companies. The certificate of incorporation is sent to the registered office of the company.
PAN and TAN
The PAN application is made by form 49A, and the application for TAN is made using form 49B and is to be submitted at the TIN Facilitation Centre.
Registration with the Office of Inspector
A statement with the employer’s and manager’s names and the establishment’s name, postal address, and category need to submitted to the local shop inspector with the applicable fees and within 30 days span.
Registration for GST
A business venture exceeding a turnover of 20 lakhs need to register for GST.
Registration of Trademark, Copyrights
A trademark is always considered as an important asset for a company where the role of trademark is to protect the brand identity and execution. An online trademark registration helps in registering a trademark with IPIndia.
Registration at the Profession Tax Office
As per the Profession Tax Act, every employer liable to pay tax, and the company is required to apply to the registering authority using Form 1.
Registration with Employees Provident Fund Organization
For the allotment of Establishment Code Number, every employer needs to send the required information to the regional Provident Fund Organization (EPFO).