Everyone at some point or other might have wondered about becoming his own boss and starting his own company. But we are not so versed with the process and end up stuck in the problem of starting a company in India. So, we are here to sort it up for you and help with the process of starting your own company.
First and foremost thing that you should have it before starting anything is an idea or a concept on which you want to work on. It might be something you should be passionate about and you have to figure it out on how it is going to help the people around you, so you can target the customers.
There are couple of types that you can have your ideas based on, it can either be a monopoly. By monopoly I mean to say the idea is unique and different from others. It is not tried by anyone and it is handy to woo in people but the loophole is there are chances it may fail since it is not being tried and tested.
The other idea is traditional idea, it means something which is already in market, tried and tested by others. In this there are less chances of failing but the major drawback is you would be having competitors around you.
If you are clear in your heart and mind with what you have to do. Now comes the legal part that seems complicated but believe me it’s not that difficult. You have to simply visit ministry of corporate affairs website www.mca.gov.in. You have to check for an available name of your firm on the website which is not being used by others. With your set of documents that includes your Pan card, Aadhar card and address proof you can obtain DIN (Director Identification Number) and DSC (Digital Signature Certificate).
Since you are a beginner and don’t know much about it, so let me introduce some of the terms that may be useful for your registration. There are multiple business entities under which you can get your business registered.
In case you are the owner yourself and don’t want to indulge in too many regulations and processes you can go for it. In this you will be liable of your business and all profit and loss will be bearable to you. You have to visit your local bodies either municipal office or gram panchayat to get it registered or you can opt online. Charges for this will be around 1000 and you will get it in couple of days. But this should be a small firm with capacity of 4-10 people only.
If you are liable for the profit and loss in your company you can go for a pvt. Ltd. Registration. In this you must have a post of director and shareholders. Having a pvt. Ltd. tag fetches you loan from banks on ease and gives a trust to others. There are higher regulations involved in this process. For this the charges are around 6000-7000 and it takes 7-10 days for registry.
Other legal registrations you can opt is GST registration, professional tax registration, ESI registration for more than 10 employees, PF registration for more than 20 employees and MSME registration to get subsidy.
Funding for Business
Since you have your company registered now you need funding for operation of your company. It is highly advised that you plan your annual budget, how much you would require for operating the business. The plan should be clear enough that you can get funding based on that if needed.
There are various sources where you can get your funding from to run the business. If you are having a small unit you can opt for own funds or borrow it from friends or relatives. But if your business is medium to big you can go for other options such as crowd funding where you get fund from websites such as wishberry.
You can also opt for angel investors who have the experience of running their own start-ups, they can ask for a certain share and invest in your business. Other major sources of investments are bank loans but one should go for loans only if he is sure enough to repay it back. And you could present your business model to investors who can provide you with seed funding.
Now, with all these handy information you are ready to go for your own business. We wish you all the best for your business endeavors.
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