Starting a business to running a business, today India has grown into a developing country. Narendra Modi during 2019 Independence Day affirmed that India will become one of the top ranked nations in business.
In India, thousands of young students, management pass-outs and professionals dream of raising the curtain of their own business ventures. More often, many young entrepreneurs believe that having an excellent business idea is more than enough for them to make their business into a roaring success.
Anyhow, establishing a business and setting it into operation requires multiple skills. You can get inspired by a lot of things to start your own business. Maybe you are passionate about something and it has been your dream since your childhood or maybe you don’t want to work under someone and wish to be your own Boss.
What’s your idea?
There are very few chances of thinking of such an idea which no one has ever thought about as there are more than a billion people in the country hence it is very difficult to have such an idea. It is not mandatory to do something new which you are not confident about. Indeed you have to think about what you yourself like to do. It is always better to focus on your passion and your interest. All you have to do is give value to your people, benefit them and for this value they will be ready to give you money in return.
Make a business plan for a year
If you want to start your business tomorrow then prepare the budget report of a year from tomorrow to the end of the year. This must include how much money will you need to start the business, how much capital and investment will be required? What will be the expenses in the whole year and the profit that you will gain. The business plan that you have made for the year should be as detailed as possible. This will convince the investors that this business will surely work and if we invest in this then we won’t incur any loss and will gain only profit from the business. Once your business is established then you can move to the next step.
Register your business
Registering your business with the government is the next step. There are different ways to register it according to the type of your business.
Sole proprietorship:
Firstly this is one of the oldest and the easiest way to register your business which is sole proprietorship. Proprietorship is a way to register your business where the business owner is you yourself. Whatever will be the profit or loss of your company will be your own profit or loss. In short you are personally liable for everything that’s happening with your business. Usually small business owners use this way and register the shop as sole proprietor.
One Person Company:
Here the company is run by a single person who is also the shareholder and the director. Anyhow, it is always superior to register as a Private Limited Company as more or less, both have the same taxation and compliance needs, and a Pvt. Ltd. is not dependent only on one person for its existence.
Traditional Partnership:
Here the company will have at least two people as partners. Businesses now favor registering as LLP’s. It is better not to opt Traditional Partnership for registering as it has Unlimited Liability.
LLP or Limited Liability Partnership:
This is the same as a Traditional Partnership Firm but with limited liability. It mixes up the advantages of a traditional firm (less regulations, more control), and of a corporate entity (limited liability of the partners).
Private Limited Company:
This is formed by at least two shareholders. It has Equity shares instead of a Profit sharing ratio as compared to an LLP. Nevertheless, it is a very compliance-heavy form of an entity. ‘Private’ indicates that it cannot invite the Public to purchase its Shares and ‘Limited’ indicates that the Liability of the Shareholders and Directors is Limited.
Tax registrations
After registering the company the next step is to do the tax registration.
GST registration
The first one is GST registration. In a year if your company’s turnover is more than 20 lakhs, then you will have to register for GST. Some states of North India have a minimum turnover of 10 lakhs and GST registration is also required if you deal with import export even within the states or if you have a business associated with e-commerce.
Import Export Code registration IEC
If you have any import export business then you will have to get import export code registration done.
Professional Tax registration
In some states there are different kinds of tax called professional tax registration which you have to get done if you reside in such states.
Employee State Insurance Registration ESI
If you have more than 10 employees in a company then you have to get Employee State Insurance registration done
Provident Fund registration PF
If you have more than 20 employees then you have to get provident fund registration done.
So now you are ready to start your own business but always remember if you really want to reach the pinnacle of success you will have to pass the examination of hard work.
