Starting a company in India can be intimidating, given the various legal and financial requirements that need to be met. However, with careful planning and a willingness to put in the effort, it is possible to start a company in India. This article outlines the steps for starting a company(business) in India, from obtaining the necessary licenses and permits to incorporating your business. By following these steps, you can ensure that your business is set up for success.
Steps to Keep in Mind when Starting a Company in India
Choose Your Business Entity or Legal Form
The first step in starting a business in India is choosing the appropriate business entity. Depending on the size and nature of your firm, you can opt for a sole proprietorship, partnership, limited liability partnership, or private limited company. Before making a selection, it is important to be aware of the benefits and drawbacks of each type of company form.
Register Your Business Entity
Once you have chosen the right business entity, you will need to register the business with the appropriate government authorities. Depending on the type of corporate entity you have chosen, this procedure may differ and may necessitate the submission of additional documents such as a memorandum and articles of association (MOA & AOA), uploading of forms with ROC, applying for PAN & GST etc.
Obtain Necessary Business Permits and Licenses
After registering your business entity, you need to register the business and obtain the relevant licenses and permits. The specific licenses and permits required will vary depending on the type of business you plan to open. For instance, if you plan to open a manufacturing business, the local government will require a manufacturing license, factory licence, fire licence. If you plan to open a restaurant, the local health department will issue you a food license.
Open a Bank Account
After registering your firm and obtaining all required licenses and permissions, you must open a bank account. To accomplish this, visit the neighborhood office of a bank that provides business banking services. Researching banks before opening an account is crucial because some may provide better rates and services than others.
Hire Employees
In next step of starting your business, you must begin hiring staff as soon as your business bank account has been established. Employees with particular skills and qualifications may be required, which depends on your startup’s business type. It’s crucial to guarantee that all employees are paid fairly as per minimum wages of respective state and are able to work lawfully in India.
Comply with Regulatory Requirements
In addition to hiring employees, you must ensure that the business complies with all applicable laws and regulations like GST, Income Tax, PF, ESI. This may include registering for applicable taxes, obtaining the necessary government registrations, and filing regular returns and paying challans with the government.
Promote Your Business
After setting up your business and ensuring compliance with all applicable laws and regulations, you need to start promoting it. This may involve developing a website, creating social media accounts, and running advertising campaigns.
By following these seven steps, you can ensure that your business is set up correctly and ready to start operating in India. It is important to remember that setting up a business in India can be complex and time-consuming, so it is best to seek professional advice if you are unsure of the legal or financial requirements.
Complianto offers a comprehensive suite of services to help you get your company up and running. Our advisors are available to assist you in making the best decisions and ensuring that your company is started and managed in the most efficient and cost-effective manner.
