Entrepreneurial aspirations among youngsters are rising along with the growing middle class in India. Technology has opened up numerous business opportunities and made starting and managing a business easier. Therefore, it is more rewarding than any other time to start a business in India.
The first step in starting a new business is the ideation stage. In this stage, the Entrepreneur must look for various ideas or be inspired to start a new business. Once an idea or aspiration develops in the mind of the Entrepreneur, time must be spent in trying to understand the market, the product/service offered, existing competition, availability of manpower, funds, infrastructure, etc., Once the above research is complete, the Entrepreneur can fully-develop a business idea into a plan of action.
Before beginning to invest time and money into the new business, it is important to consult an Advisor with experience in helping startups. The Advisor can then understand your business plan and advise you on the choice of a legal entity, licenses, funding, taxation and compliance.
IndiaFilings specialises in providing Startup Advisory support. We have helped start over 50,000 businesses across India in every industry possible. Our Advisors are available 24/7, 365 days and can help answer various questions you may have concerning the legal formalities, business licenses, funding, income tax, GST and labour law compliance.
Once you have selected the right Advisor, the next step would be to register the business. It is essential to register the business before purchasing or investing, as the investments can be accounted for under the entity.
Today, an Entrepreneur has various choices for legal entity ranging from proprietorship firms to limited companies. For most Entrepreneurs who wish to build a professional business with long-term value creation - an LLP or private limited company would be the right choice. On the other hand, if an Entrepreneur wishes to start a small business with a limited scope of operation - a proprietorship firm or partnership firm would suffice.
Every type of legal entity has various advantages and disadvantages. Hence, it is important for the Entrepreneur to discuss his/her plan for business with an Advisor and select the one that fit his/her requirement the best.
Based on the type of activity proposed by the business or vendor criterion or customer requirements, various tax registrations may be required for the business, as follows:
GST Registration : GST registration is required for any person or entity if the turnover is over Rs.20 lakhs in most states.
TAN Registration : TAN Registration is required for tax deduction at source (TDS). Therefore, TAN Registration may be required while hiring employees or dealing with certain customers or vendors.
ESI Registration : ESI Registration will be required when the number of employees in the business crosses 20. Proof of ESI Registration is often requested by businesses that outsource manpower requirements.
Opening a bank account in the name of the business is one of the first task to be completed after registration or incorporation of the business entity. Corporate entities like LLP, Private Limited Company, One Person Company and Limited Company are allowed to open a bank account in India by submitting a copy of the Certificate of Incorporation and PAN Card of the entity along with Director KYC documents. On the other hand, opening a bank account in the name of the business for a Proprietorship entity could be more cumbersome – as one or more tax registrations may be required to establish the identity of the proprietorship business. Refer to the article on “Opening a business bank account in India“, for more information.
If a bank loan is required for working capital or purchase of equipment while starting a new business, it is best to open a bank account with a Nationalized Bank. Nationalised banks are more in favour of providing bank loans for startups, when compared to privatised banks. Hence, the right banker must be selected while opening a business account.
Technology has made starting and operating a business from home, easy and cost-effective. The advancement in technology combined with the Entrepreneurial spirit of the middle-class has made many home-based business models a success in India. Working from home can be very rewarding both in terms of money and work-life balance. Home-based businesses are rapidly gaining popularity in India.
Home-based business idea – Medical Transcription
Medical transcription is a business in the healthcare industry that involves the conversion of voice format dictation of Doctors and other health professionals into text format. Doctors and Healthcare Professionals in foreign countries such as US, UK, Canada, etc., are required to maintain detail patient information and record all their interactions with patients. To save time and effort, healthcare professionals in foreign countries, voice record their interactions with patients instead of type. The voice recorded information is later converted into text format by a Medical Transcriptionist – based out of India or other countries with low labour cost.
To succeed as a Medical Transcriptionist or establish a successful home-based medical transcription business, it is important for the Entrepreneur to have good language skills – listening, interpreting and typing. Healthcare experience or knowledge would also be a plus. To start a medical transcription business, there are a number of companies in India that offer training and business.
Home-based business idea – Digital Marketing Agency
Digital marketing has evolved to be one of the most affordable and effective forms of advertising in India over the past few year. Digital marketing has become a must for most businesses – small, medium or large to maintain an online presence. Maintaining an effective online presence could involve the creation or maintenance or business website, maintenance or social media pages, search engine optimization, search engine advertising, blog writing, content marketing, video shooting and more. Any person with expertise in any of the above-mentioned areas can easily establish a successful home-based digital marketing business.
To succeed as a Digital Marketer or Agency, it is important for the Entrepreneur to be tech-savvy and have prior experience with digital marketing. Even those that do not have any prior experience can succeed in Digital Marketing by investing the time and effort towards acquiring those skills. With more and more businesses advertising online, digital marketing business is set to witness high growth rates over the coming years. To start a digital marketing business, no investment in hardware or commercial space is required. The Entrepreneur can start the Digital Marketing Agency as a home-based business. It is however recommended that the Entrepreneur register the business as a LLP or Private Limited Company to easily acquire customers and display professionalism.
Share trading is a very popular form of home-based business in India. All that is required to start a share trading business is a computer and some capital. Success in a home-based share trading business is, however, determined strictly by the Entrepreneur’s experience and expertise. In addition, to share trading business, other related activities such as providing stock market insights, share brokerage, mutual fund sales, etc., can also be established as a home-based business.
To succeed as a Share Trader or Share Broker, it is important for the Entrepreneur to have very good financial and share trading acumen. Stock trading is a high risk-high reward business and is often equated to gambling. Therefore, to succeed in the share trading business over the long-run, it is important for the Entrepreneur to stick to proven stock trading strategies and avoid fear or greed. It is recommended that those starting in the share trading business – start a LLP or a Private Limited Company to enjoy Limited Liability Protection.
Tutoring and baby-sitting are among the most preferred home-based business for women in India. To start a tutoring business aimed at school children, a study room and the love for teaching are only required. However, to succeed as a home-based tutoring business, a practical knowledge of the school syllabus, prior teaching experience and the ability to easily converse are required, among other skills. A tutoring business does not have to restrict to school syllabus and could even be music tutoring or language tutoring or computer skills tutoring, etc.,
Tutoring could be a very rewarding and low-stress – home-based business. Further, the internet has made tutoring a global business which doesn’t have to be restricted to a geographic area. Tutors from India are now coaching students across the world in a wide variety of skills using technology such as Skype, Teamviewer, etc., Tutoring is an evergreen business, with plenty of students searching for the internet for a wide variety of skills and subjects to learn.
Apparel and jewellery designing is an excellent home-based business for women. A home-based apparel or jewellery business could involve the designing or creation or sales of apparel or jewellery from home. Entrepreneurs who can design, manufacture and sell apparel or jewellery from their homes are high successful – as the investment and operating cost is significantly lower when compared to traditional retailers. To establish a successful apparel or jewellery home-based business, good design skills and passion for fashion are the only requirements. Further, Entrepreneurs having good online marketing skills in addition to designing skills can perform extremely well – as more and more apparel and jewellery are being sold online through social media and online marketplaces.
Websites like Flipkart and Snapdeal have now made the selling of apparel and jewellery online, a breeze for Entrepreneurs.
A list of low investment and successful home based business ideas in India. Home based businesses are easy to start and require no or minimal investment.
Business ideas for women in India including process for starting a business. Clothing boutique, beauty salon, catering are popular business ideas for women.
Complete your proprietorship registration online in less than 72 hours anywhere from India. Proprietorship startup with GST registration and IT filing starting at less than Rs.2899 per year.
Online LLP registration with LLP deed drafting and GST registration at just Rs.7899 in less than 15 days. To register an LLP, a minimum of two persons above the age of 18 are required.
File trademark registration application online through IndiaFilings in less than 24 hours at just Rs.5988 all inclusive fee. Get a free trademark search and consultation on trademark filing process. IndiaFilings provides a range of trademark services from trademark filing to objection handling.
File your GST registration application online through IndiaFilings. Get help with GST registration procedure, eligibility and documents required. Entities with an annual revenue of more than Rs.20 lakhs must obtain GST registration. Complete your GST registration online in less than 5 working days.
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