One of the best countries for setting up a business, India is a good place for entrepreneurs who want to expand their company. It offers a large pool of talented workers and other resources that can help you to start your own business. India is the world’s fastest-growing economy and if you are thinking of starting a business there, then you must know these important things.
If you have a passion for entrepreneurship and a passion for India, then starting your own business in India is the best decision you will make. In this article, we’ll help you figure out what to do and what to avoid when establishing your business here.
Why India Is The Best Place To Start Your Business?
India has become a major hub for medical marijuana growers. This is mainly due to the fact that this country offers great potential for those looking to start their own business.
There are many advantages to starting your own business in India including low costs, high quality products, and a large market. However, before jumping into the world of entrepreneurship, there are some things that you need to know about starting a business in India.
The first thing you should do is research the laws and regulations regarding running a business in India. In order to run a successful business, you need to make sure that you comply with all legal requirements. If you fail to follow these rules, you could find yourself facing heavy fines or even imprisonment.
Make sure that you have the right licenses and permits. These include things like importation permits, product registration, and business licenses. You can get these at no cost by applying online.
Why India Has Become A Startups Hub?
1. Low cost of operations- India’s startup ecosystem has been growing at a rapid pace over the past few years. In fact, according to CB Insights Global Startup Ecosystem Ranking 2018, India ranks number 1 among all countries in terms of startup activity. This is due to the low-cost of operations and a highly skilled workforce that can help entrepreneurs launch their business at a much lower price point than other regions.
2. A large market size- The Indian economy is expected to grow at a rate of 7.5 percent per year between 2016 and 2020. This means that the country’s market size will increase from $2 trillion today to $6 trillion by 2020. This is a huge opportunity for businesses looking to enter into the market.
3. A young population- According to the World Bank, India’s population is the youngest in the world. As of 2017, only 20 million people were above the age of 60 compared to China’s 962 million. This is great news for entrepreneurs who want to target this segment of the market.
Steps In Start in Your Business.
There are many key steps involved in starting a business in India.
1. Determine what business you will start?
The first step is to determine the business structure, which will largely depend on the nature and size of your business. It could be a sole proprietorship, partnership or company.
2. Register your business-
You need to register your business in India through the Registrar of Companies (ROC) or other relevant authority for that particular state or union territory.
3. Get a business license and/or permits (if necessary)-
Then get a business license from relevant local authorities to start operating officially.
4. Open a bank account to hold your funds-
After this, you will have to establish a bank account for your business under specific banking norms as well as apply for a required visa depending on your requirements.
5. Obey laws regarding taxes-
For small businesses, expenses can be kept low by getting started with only the basics. You don’t need an office to run a successful business; in fact, your home may be the perfect place to do business.
6. Hire employees-
After registrations and commencement what you need to do is now, start hiring the number of employees your business requires through a human resource manager.
What Are The Things You Need To Know About Advertising.
1. Find a product that people want-
This is probably the most important step in starting any business. You need to find a product that people are willing to pay money for. If no one wants your product, then you won’t have a successful business.
2. Create a website-
You’ll need a website to sell your products. This way, you can build a relationship with your customers and create a community around you. I recommend using WordPress as it’s easy to use and has a lot of free themes that look professional.
3. Get social media accounts-
Once you have a website, you’ll want to get social media accounts to promote yourself and spread word about your business. This includes Facebook, Twitter, Instagram, etc.
Some Benefits From The Tax For New Businesses In India.
1. Income tax exemption-
Income from any business activity is exempt from income tax if the person has invested at least Rs. 1 crore (Rs. 10 million) in that activity. This includes interest earned on loans taken from banks and financial institutions.
2. Capital gains tax exemption-
If the capital gain from sale of shares or properties held for over two years is less than the cost of those assets, then no capital gains tax is levied.
3. Deduction of expenditure incurred on setting up a new business-
A deduction can be claimed against taxable income for expenses incurred on setting up a business. These include legal fees, accounting costs, advertising, travel, etc.
However, you don’t want to invest too much money into your business. Try to set aside 10% of the total amount that you plan to spend on your business.