Best Time to Start a Business in India
Today is the Best Time to Start a Business in India
India’s startup ecosystem is booming with plenty of interest from private equity investors and the media. Today the top graduates are preferring to start their own business instead of working for large corporates. Investors, customers and employees are also choosing startups over large companies – intrigued by the innovation and ingenuity. In this article, we look at the top reasons why today is the best time to start a new business in India.
Indian Economy is Booming with Endless Opportunities
The Indian economy is booming and the foreign markets are reviving from the 2008 economic crisis. The Indian economy is the second-fastest growing economy in the world and is slated to overtake China to become the fastest-growing economy in the world. Though the Indian economy continues to boom at a very fast pace, the Indian market or domestic demand is still underserved. The Indian metros have become well developed over the last decade; however, thousands of tier-II and tier-III cities in India are still underdeveloped.
The increasing penetration of internet-enabled smartphones and e-commerce in India is set to transform the second-tier or third-tier cities – unlocking massive demand for goods and services. It is this aspect of the Indian market potential that has made countless foreign companies invest billions of dollars into India. Know more about top business opportunities in India.
Easy and Affordable to Start a New Business in India
Starting a new business in India used to be cumbersome and expensive. India was ranked at 179/189 in terms of “Ease of Starting a Business” by the World Bank just a few years ago. However, eCommerce and a pro-business Government have now made it very easy and affordable to start a new business in India.
Plenty of information is now available through websites likes IndiaFilings.com for Entrepreneurs looking to start a new business. Also, for those starting a new business, the required formalities can be completed from the comfort of their homes at a very affordable cost. To register a Private Limited Company it costs just Rs.16000 and a Limited Liability Partnership can be registered for just Rs.8000 in India through IndiaFilings. Therefore, the internet has helped make starting a new business in India very easy and affordable.
Further, the Government has also introduced various measures to reduce the amount of formalities required to start a business in India. The newly introduced Form INC-29 drastically reduces the number of procedures required for incorporating a company in India, making it possible to incorporate a company quickly.
It’s Easy to Manage a Business in India
The Government has also taken various steps to make it easier to manage a business in India by reducing the compliance burden. The Limited Liability Partnership (LLP) Act, 2008 and Companies Act, 2013 have introduced new business entities like LLP, One Person Company and the concept of “small company” making it less cumbersome to manage a business entity.
Further, the Goods and Services Tax (GST) is expected to be rolled out in April 2016, overhauling the existing indirect tax structure in India – making it transparent and less cumbersome. Know more about the advantages of GST implementation in India.
It’s Easy to Find Capital
Private equity deals worth nearly USD 2 billion were sealed in April this year, registering a jump of nearly three-fold over the same month last year, largely driven by transactions in e-commerce space, says a recent Grant Thornton report. The booming Indian economy and bustling Indian startups are attracting a lot of investors from foreign countries making today the best time for starting a new business in India.
There are now plenty of Private Equity firms operating in India and many more looking to start operations. Further, many High Networth Individuals (HNIs) and Celebrities are also beginning to understand the potential of Indian startups, making it easy to find seed capital for starting a new business. Know more about Private Equity in India.
Entrepreneurship has become Socially Acceptable
Gone are the days when friends and family chastised entrepreneurship and preferred their family members opted for employment over entrepreneurship. The success of many young Entrepreneurs has showcased the opportunities in Entrepreneurship – making it more socially acceptable. Today, family members are willing to support Entrepreneurship with capital and emotional support – increasing the number of Entrepreneurs and their chances of success.