Whenever I hear about the entrepreneur, freedom, courage and passion are the words that come to my mind. To start your own business, you can be inspired by many things. Perhaps you are passionate about something and it is your dream from childhood. Maybe you don’t want to work under someone and want to be your own boss. Maybe you are inspired by our Prime Minister’s words and want to open your fritter shop. Whatever the reason may be, I will tell you everything from beginning to end what you need to know in this article to start your own business and become an entrepreneur in India. Let’s see.
How to start a business
So friends, the first step in starting or starting your business is that you should know exactly what you want to do. what’s your idea? Many people think that I need to think of an idea that no one has thought about. But I think this is a wrong thinking. There are two reasons for this,
The first is that it is very unlikely to think of such an idea that no one has ever thought of. Because there are more than one billion people in the country, it is very unlikely.
The second and more important reason is that you should not do this, to start a business where there is no customer base established, no source of revenue and no one has done any testing and no use to carry out this business. not done.
If revenue comes or problems arise, it is a very new thing and very risky. So I would advise you not to think of an idea that no one has ever thought of. You have to think about what you like to do yourself.
Step 1. Ideas and planning
Here I would advise you to focus on two things first, what is your passion, what is your interest, what do you like to do. How can you give value to people with your work and how can you benefit people and give value that they will give you money in return. When both of these things are clear, you can see which business already exists which coincides with these two things. Then study how such businesses are already in the market and how they run.
For example, if you like adventure sports like river rafting, the first thing is that the second thing is how you can benefit people, then here you can start an adventure sports company. Is present in India. How they act, study them, call and ask them about their business and study their business model. After this, the next step is to make a business plan.
Suppose if you are doing your business from tomorrow, then prepare a full one-year budget report from tomorrow to the end of the year. How much money will you need to start a business, how much capital and investment will be required? And how much will it cost and what will you gain in the whole year. And where will you get the necessary capital and money that you will need? Will you borrow from your friends, ask your family or take a loan from the bank. Start a business where you do not need to take a loan from a bank or any third person.
Start a business where your family is able to afford the initial investment. Because if you go to banks and your business fails then you will have to face big losses and a lot of problems. So think of a business where you are able to invest yourself and you have capital. Or your friends’ family is ready to give you that amount.
I am suggesting this for the initial stage, once you set up the business you can think of taking a loan to take it to the next stage. This can reduce the risk. You can borrow money from friends from anywhere but the business plan you have created for the year should be as detailed as possible. So that investors believe that this business will definitely work and if we invest in it then we will not suffer any loss. And will only benefit from the business.
Step 2. Register your business
Now that you have made your one-year business plan, we can move forward to the next step. The next step is to register your business with the government. There are different ways to register it according to your type of business. These different methods are called business entities. I will not be able to tell you all, but I will tell you the main methods.
1. Sole proprietorships
The first is the oldest and easiest way to register your business, “Sole Proprietorship”, proprietorship is a way to register your business, where the business owner is whoever it is or the benefit of the business will be your own profit Or loss. In this way you are personally liable for everything that happens to the business.
Small business owners such as a shopkeeper use this way and register their shop as the sole owner. If you want to become a dumplings then you will register your business. Proprietorship: Proprietorship has many benefits, government regulations are minimal here. To register your business as a proprietorship you will have to go to the local authority. If you live in a city, then you have to go to the municipality and if you live in it.
A village then near the Gram Panchayat. It is also available online in some cities while some do not. It will cost around 1000 rs and 1-2 days to register but also keep in mind that you may have asked or bribed as you are visiting the local authority and you know the landscape of our country. So be prepared for it.
You can apply for proprietorship only if your company is a small scale and no more than 4 people are on the job as it becomes very risky when it comes to scale. Think your company is worth crores and you have lost crores, then it will be crores of losses. You do not want to do this, so in this case you should not proprietorship and if you want to keep your profit and loss separate from the profit and loss of the company and separate legal entities, in such case to register There are different methods. So there is another method called OPC,
2. OPC
A person company is not personally liable to you here if there is something happening to the company. So here they cannot come to your house and ask you to leave your house, car to repay against the failure of your company. Its registration cost is around 6000rs and is more or less in different companies. It will take 8-10 days to get registered and since it is a one-man company, you have to become a director and share holder of this company. Once you register your company as OPC, if your company name is Chikara Pakodewala then it will be Chikara Pakodewala Private Limited and OPC in parentheses.
3. Private Limited Company
The next way to register your company is a private limited company, here minimum 2 share holders and 2 directors are required. Here the maximum limit of share holders is 200 and if you want more than this then you have to become a public limited company. So as the name is private limited it is limited in the same way as an individual company is limited. Here there is limited liability, so the holders of the shares have limited liability so if there is loss in the company then the shareholders will not have to pay for the loss personally. This is a highly respected and reliable way of registering your business.
If you do this then the trust of customers and customers on your company and the trust of banks increases manifold if your company has written Private Limited. Funding of banks and seeds makes it easier for investors investing in the company. It costs around 7000rs and it takes between 5-10 days to register it clearly because it is very reliable and so the rules are increased by the government but at the end of this article I will ask you to register yourself. I will tell you an easy way.
4. limited liability partnership
I want to talk about another way to register your company and it is a limited liability partnership. This is useful when you are a professional in a field such as a doctor, engineer or chartered accountant. And this is useful when you are building a company for a limited time and you are going to dissolve it later.
For example you are a builder and you have started a company to build a building where you have employed workers, engineers, architects, but after building the building you do not need that company and hence you can use that company Dissolve it. This limited liability partnership is used here.
These four methods that I have told you are the main methods and most of you will need it, you need to know that if you want to deal with corporate sector or big companies then the better way is Private Private Limited. And if you want to keep your own small business and do not want to get into more rules then proprietorship is the best way.
Step 3. Tax registration
So friends, you have registered the company and the next step is to do tax registration. GST registration is at number 1 here, if your company’s business is more than 20 lakhs in a year then you have to register for GST. Some states in the north have a minimum turnover of 10 lakhs and GST registration is also required if you deal with import-export within the states as well. Or if you have an e-commerce related business.
If you have an import-export business, you will also have to register the import-export code. Some states have a different type of tax called professional tax registration, which you will have to do if you live in such states. If your company has more than 10 employees, then you will have to get Employee State Insurance registration and if you have more than 20 employees then you will have to get Provident Fund Registration.
There is an optional registration called MSME, it is not compulsory but if you do it then you will get a lot of benefits. It will be easy for you to get a bank loan, you will get some tax subsidy, rebate schemes and many such benefits, so it would be good that you complete it. Therefore, there are many types of company registration and tax registration.
Step 4. Annual Compulsory Complaints
As a final step friends, I would like to tell you that there are some things that a business has to do every year. These are annual mandatory complaints,
The first thing is income tax return, every business has to file income tax return at the end of the year.
The second thing is accounting and what you need to do and I would say that you should do it carefully. It is a balance sheet, where all your gains, losses, money received, etc. are done on one balance sheet. You can hire an accountant or if your company is small, you can do it yourself. If you are registered for GST then you have to file GST, it is monthly or quarterly compliance.
Next is secretarial compliance which you will have to do if your company is OPC, LLP or PVTLTD.
You have to do a statutory audit if your company is OPC or LLP, which does a business of 40 lakhs or more annually.
So, friends you are now ready to become an entrepreneur and start your own business. At the end of the article, I would like to give you some suggestions from my personal experiences. Because somewhere I am also an entrepreneur and you can also call blogging a business.
My number one tip would be to always think about how you can give value to people. I value you through my knowledge and the knowledge you gained after reading my articles. A pakowdawala tells you how delicious it is and how much you like to eat it.
So, all business gives value and if you are going to focus on value then your business will do well. And somewhere I can be given a falling price only when you enjoy working.
So only do business where your interest is vested and you enjoy working. And in the end there is no point in doing a business that runs in an uncertain way that leads to destruction.
I will give you an example of Adani’s business, where he was building a coal mine on the great reef and affecting the natural resources, to no avail, to say that he would generate employment and generate more electricity but Who would like his company to cause such destruction? No one will respect such a person, so stay away from such business.
So I hope friends, you have got a lot of knowledge and a lot to learn from this article.
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