Setting up a business in India

Sara Mackey, February 2012

Starting a business in India may not be as difficult as one would think, especially for small businesses. India has fewer formalities and more relaxed regulations than many other countries. First, you will have to name your business and open a bank account with its name. You will also have to provide a verified address for your business with ownership deeds, rent agreement or rent receipts. You may also be able to provide utility bills as verification. You will have to prove your identity as well with valid documents like a passport, driver’s license or identification card in order to register your business in India.

In order to sell goods and/or services in India, you need a VAT registration. You can obtain a VAT registration for an Indian territory, a province or both. Planning your business, securing business capital and good marketing strategies are also important aspects of starting a business in India.

Develop a Business Plan

Starting a business is more than just buying and selling goods or services to your customer. A business is a set of systems that must come together in order to succeed. Developing a well-detailed and thorough business plan can help create a guideline and steer you in the right direction. Most lending organizations will require a business plan before they will consider approving you for a loan. Planning your business ahead of time may be one of the most crucial steps a business owner can make.

Business Capital

All businesses need working capital in order to survive and succeed. If you do not have the available liquid funds needed to sustain your company, you will need to be financed. There are a number of available financing options. Debt financing, equity financing and hard money loans are just a few of them. You may also want to consider a merchant cash advance loan. A merchant cash advance provides the capital you need in a lump sum and is repaid based on future credit card transactions rather than through a series of monthly payments. A merchant cash advance loan is a good alternative for business owners that cannot get approved for traditional commercial loans.

Marketing Strategy

A good marketing strategy is another vital element playing a role in the success of your business. You have to be able to market your good or services in a way that appeals to your targeted demographic and clientele. You may want to skimp on marketing at first, but in the long-run, it is better to develop a strong marketing strategy and widen your customer base.

Starting a business in India can be a wise business decision if it is done correctly. India’s relaxed regulations and generally low upfront capital requirements appeal to many small business owners.