How to Start Business in India?

Start business in India

How to start a business in India?


Starting a business in India is easy, especially if it is a small business. India requires lesser formalities to start a small business than many other countries.
Once you have decided to start a small business in India you have to complete some formalities, legal and statutory.




First of all you have to choose a name for your business and open a bank account (Current account) with the name. You have to provide a genuine address of your business. Evidence of your business address must be supported with relevant documents such as ownership deeds (if you are the owner of the premises) or an agreement of rent or a rent receipt.
You can also furnish your electricity or telephone bill as supporting evidence. You must verify your identity by furnishing your identity verification documents such as passport, voter ID card, ration card, driving license etc to register your business in India.

You need a VAT registration to buy or sell your goods in India. You can have a VAT registration for a state (province) and / or for Indian territory. You need to provide a bond of small amount as security deposit.

Plan your business

Business is not just buying or selling your goods. Business is altogether a different thing than a mere financial activities or transactions. Business is a system or a set of systems required to earn profit by satisfying needs of your clients.
You have to make a plan for your business which is relevant to your business idea. Planning is the most important and vital part of your business. There is a well said proverb that if you fail to plan you are planning to fail. So, plan your business well.
PDCA: Plan, do, check, act

PDCA is a good way of making your business effective and efficient. Plan your business and then do according to your plan. Check its suitability and viability. Change or modify your plan if necessary. Do it responsibly. Go with minute details while checking your plan. Act upon your checked plan.

Business credit

Your business needs credit. Build business credibility. It often starts from your personal credit. However, business credit is different from your personal credit. You may have your personal credit and personal credit ratings but you have to build your business credit and business credit rating gradually.
Business credit and business credit rating will help you getting finance from banks, financial institutes and individuals. This will help you in expanding your business.
Your credit is not limited to financial aspects. You have to build your credibility among your clients especially customers. Your business will grow with satisfied customers. Provide your customers with quality products and services. Maintain timeliness. Timely supply is a keyword to modern business.
Your business can not grow only with quality goods and services but your goods and services should have competitive price. You have to remember that large numbers of other suppliers are also in the same business and you have to compete with them. Your efficiency will help you in growing your business.

This is true for India and anywhere else

Marketing and advertising

Marketing is another keyword of present days business. It is not enough to manufacture or procure quality goods in modern businesses. You have to market your products and services well. You have to find customers and convince them to buy you products and services. It is vital for your business. You have to know taste of your clients and supply products and services according to their choice and needs. It is better to have an in-depth knowledge of social and cultural back grounds of your customers. Often these effect customers' behavior along with their financial positions.
For example, if your business is related to food and beverages and you are working in north India, you can easily sell Gujiya or Rasogolla. However, it is difficult to sell these items in south India where people prefer Idli or Dosa.
It is better to know financial position and budget of your niche customers. You can adjust rates of your products and services according to budget of your clients.
Advertising is also a necessary item in your business plan. It is very difficult to run and grow a business without advertising in modern days. There are plenty of ways to advertise your business. You can advertise your business in India through print and electronic media. Internet advertising is also becoming popular in India. However, advertisement is becoming expensive and it is difficult for a small business to cope up with high budget of advertisement.
You can use several means of free advertising in internet. One of these are registering in Yahoo and Google local businesses for free. There are several other sites which offer free listings. You can also advertise your small business through e-mail and SMS as internet and mobile phones are popular tools of communication.
You can go with mouth publicity also. this is the best way of advertisement for small businesses with small or no budget for advertisement.

Do not forget that a satisfied customer is your best ambassador. He brings customer to your business.