According to MSME reports, India has more than 36 million SMEs, providing employment to more than 80 million people. Small businesses account for more than 8% of GDP, 45% of total manufacturing production, and 40% of India’s exports. Recognizing the significant contributions of SMEs, the Government of India supports SMEs through various subsidy programs and initiatives.
Small businesses can be established as service or production units. According to the Ministry of Micro, Small, and Medium Enterprises, the service sector with a capital investment of Rs.2 crores or less is classified as a small and medium enterprise. In the manufacturing industry, entities with investments in plants and machinery of less than Rs.5 crores are classified as Small businesses. According to the above definition, there are various companies that can be incorporated as small businesses.
Documents To Start a Small Business in India
Director identification number
Permanent account number
Goods & services tax registration
Digital signature certificate
Article of association
Memorandum of association
How to start a small business
1. Decide On A Business Idea
India has opened the door to many sectors for small businesses, Indian citizens, non-resident Indians can start small businesses, foreigners from India / India and foreigners with locals Cooperate. The Indian Exchange regulates investment by foreign companies and nationals, and the Monetary Act (FEMA) is regulated by the Reserve Bank of India.
2. Get More Training And Experience
You need to start your business according to your expertise. Remember that your skills and experience will determine the success of your business. Learn as many tricks as you can and try to implement them in your company
You can choose professional or vocational training courses offered by various reputable institutions of the Government of India. You can also work with other organizations established in this area to acquire additional skills. It is always best to start as a beginner and forget about prior knowledge and experience.
3. Write Down: Project Report
The project report should include details such as the owner’s or partner’s name, age, and qualifications. Attach experience certificates relevant to the trade. This will help you raise money. Add a revenue model with more specific details such as costs and selling prices, shipping, taxes, and other costs. Expected revenue for the project over the next 2-3 years. The first step in the company begins with a feasibility study and a project report. This can be achieved with the help of an expert, depending on the nature and means of the business.
4. Deciding The Funding Source
Most small businesses in India are either self-funded or founded by raising money from family and friends. You need a fair quote for the amount you need to start your startup.
5. Decide Your Location
To start a business in India, you need a home space or shop, a booth, a workshop, or an office. Indian law requires small businesses to be registered with the local community/village government. Civil Corporation or Gram Panchayat permits retail/home business outside the area under its jurisdiction. Utilities require a municipal / village Panchayati registration before providing an electric and water connection to the facility.
6. Business Registration And Legalization
This is a daunting and difficult task for business people. Registering your company in India can be long and complicated. Thanks to direct instructions from Prime Minister Narendra Modi, the Ministry of Corporate Affairs (MCA) is currently registering a new company within 1-2 business days. When starting a small business or start-up, licenses from various states and central governments are required.
7. Tax Registration
To start a small business at home, you need to get a Permanent Account Number (PAN) and a Taxpayers Identification Number (TIN). Obtaining PAN and TIN is relatively easy.
You can contact the PAN and TIN Service Centers authorized by NSDL (National Securities Depository Ltd), submit the completed form with the required documents attached, and pay a small fee. The PAN number and TIN number will be issued within 30 business days from the date of application.
8. Start Your Own Website
Based on its nature, all small businesses in India can be divided into three types.
1. Online (whether you are working from home or setting up an office)
2. Online and physical
3. Physical (shop/office / workshop/home)
Trends demand an online presence for all businesses. This can be done by creating a website or social media page such as a Facebook page or Instagram page, depending on your budget and the products/ services offered.
9. Gain A Position In The Market
Use all your creativity when starting a startup or small business. Give your startup a name that is easy to remember. The company logo is your company’s brand ambassador. This logo will one day announce outstanding products and services around the world. All successful companies retain the logo or version they used at the start.
10. More Money Matters With Banks
If you have a company and municipal registration, and a PAN number, the bank of your choice will open a current account. Please check some details before opening an account in a hurry. Contact your bank advisor for overdraft facilities. This is important to prevent cheques from being bounced due to a lack of funds. Bounce cheques indicate financial instability in a company or business. You can negotiate with your bank how many free cheques you are eligible to receive each year.
11. Employed At Low Wages
This is one of the main areas of your small business. Most entrepreneurs usually start a solo exhibition of proverbs. Some people get help from their spouse, adult children, siblings, parents, and other family members. This is not always possible. The best way to get qualified staff with entry-level salaries is through an educational institution or website. Almost all training centers offer placement security. There are websites like Intern Shala where you can hire internships at low wages.
12. Publicize Your Small Business
The fierce competition requires you to successfully promote your small business. Advertising costs a lot of money and can cost you a lot of money. Introducing your business using a microblogging site like Twitter and increasing your presence on Facebook can serve this purpose. You can also create YouTube channels, post company videos, products, services, features, and other information to the channel, and upload related images to Instagram. The best LinkedIn for your business is ensuring you reach the right network.