India ranks third in the world in terms of the startup ecosystem and number of unicorns. The government also undertakes several schemes and measures to promote startups in India.
If you have a business idea that can genuinely turn into success, here is a comprehensive guide to learn how to start a startup in India.
Importance and Potential of Starting a Startup in India
- The Indian government, under the Startup India initiative, intends to strengthen the ecosystem conducive to startup growth.
- Its primary aim is to empower new businesses and help them grow through technology and innovation.
- The government provides several benefits to new entrepreneurs to promote growth and support the Indian economy.
- If you learn how to start a startup company in India, you will receive multiple benefits for starting your endeavour.
Since the Indian government highly encourages startups, they provide immense benefits you can enjoy when exploring how to begin a startup in India.
Check Eligibility for Online Startup Registration
Many people dream of starting a startup, but only a few know how to start up a business in India. Here are a few eligibility conditions for online startup registration:
- Your company should be an LLP or PLC.
- The company will be categorised as a startup for the first ten years.
- During the first ten years, your business will remain a startup until its annual turnover reaches Rs. 100 Crore. It will no longer be a startup if it crosses this threshold within the first ten years.
- Your company will need approval from the Department of Industrial Policy and Promotion.
- You will need supporter confidence at the Indian Patent & Trademark Office.
- A letter of recommendation is necessary for incubation.
- Your business must adhere to GST regulations.
- You must provide the SEBI (Securities and Exchange Board of India) with all financial and funding data.
Also, Read: How To Get Funding for a Startup Business?
Required Documents for Online Startup Registration in India
When registering your startup in India, you must submit the applicable fees and documents to the Registrar of Firms or Registrar of Companies with a registration application form.
- Registration or Incorporation Certificate.
- Your company, partnership firm, or LLP's authorised representative must provide an authorisation letter or registration.
- Provide any proof of funding, PAN number, trademark and patent details, and a list of recognition certificates or awards.
- You must also provide a proof of concept like a video, website link, or pitch deck.
How to Begin a Startup in India?
If you want to know how to startup in India, follow these steps that will guide you through the entire process smoothly:
| Aspect | Key Points |
| Market Research | - Analyze market competition
- Identify product uniqueness
- Address customer needs
|
| Legal and Regulatory Considerations | - Comply with regulations
- Obtain permits and licenses
- Establish a legal structure
|
| Creating a Business Plan | - Include company description
- Develop financial and operational plans
- Plan for growth
|
| Establish a Strong Team | - Recruit diverse skill sets
- Incentivize team members for loyalty and success
|
| Start Promotion | - Develop an effective marketing plan
- Utilize social media and online platforms
|
Also, Read: Funding Options for Small Businesses and Start Ups
Step 1: Thorough Market Research
Market research is necessary to ensure your business is unique and new. Search for products in the market with uses, features, and benefits similar to what you sell. Know the level of market competition and find out how your product is better. Read customer reviews to identify and resolve customers' problems.
Step 2: Legal and Regulatory Considerations
Every business must work legally while complying with the set regulations. Since these regulations may vary between states and industries, you must find ones to follow. Establish your entity with a legal structure and obtain the necessary permits and licenses to operate under compliance.
Step 3: Creating a Business Plan
Before commencing operations, a business plan is an absolute necessity. It should primarily contain your company description, market description, business model strategy, opportunity, organisation and management, marketing, financial, and operational plans, etc. You will also need a plan when applying for a Business Loan or presenting your business idea to an investor.
Step 4: Establish a Strong Team
Your team members will be the key to your business success. Decide how many partners or employees you need on board, and ensure they have different skill sets to diversify your portfolio. Incentivise them appropriately to keep them happy and earn their loyalty.
Step 5: Start Promotion
Promotion is imperative to any business's success. An expert marketing team will create an effective marketing plan for your business, letting it reach larger audiences and boosting sales through brand awareness. Social media and online platforms are the best places to start promotion. Besides, consider the power of traditional marketing methods like classifieds and commercials.
Also, Read: Financial Tips To Set Up A New Business
How Business Loans Can Help to Scale a Startup?
Now that you know how to start a startup in India, you may apply for a Business Loan to fund your business. Here is how it will help:
- Equipment and Inventory: Use funds from the loan to purchase equipment and inventory and scale your business operations.
- Help in Expansion and Growth: When it comes to business growth, a Business Loan can finance your expansion plans and let you achieve your goals.
- Marketing and Advertising: Hire an efficient marketing company with business finance to reach your target audience positively, make an impact, and achieve your sales goals.
Steps to Apply for a Business Loan Online
After learning how to start a startup company in India, you must be planning how to obtain the required funding to grow it further. Follow these steps to apply for a Business Loan through Hero FinCorp:
Step 1: Visit the
Hero FinCorp website or loan app.
Step 2: Fill out an online application form.
Step 3: Upload the necessary documents.
Step 4: Enter your loan details, like the required loan amount and convenient repayment tenure.
Step 5: You will get a reference number for future use if you qualify for a Business Loan.
Step 6: Let the verification process complete.
Step 7: Accept the loan offer to get disbursal in your bank account.
Notably, to be eligible for a Business Loan from Hero FinCorp, you should be between 25 and 65 years with an experience of up to 5 years. Eligible applicants can get up to Rs 40 lakh at interest rates starting at 14% with a flexible repayment tenure of up to 60 months.
Conclusion
This brings us to the end of the guide on how to startup in India. Here, we discussed everything you need to understand and follow to run a successful business. If you are operating a startup, you might require a Business Loan to scale your operations. Obtain the attractive Business Loan interest rate from Hero FinCorp and achieve your goals while keeping your savings intact.
Frequently Asked Questions
1. How do I choose the right business structure for my startup?
The business structure you choose depends on many factors, including the taxation structure, reputation, number of owners, document privacy, ability to attract investors, etc.
2. How can I secure funding for my startup in India?
Compare lenders and approach the loan provider to secure funding for your startup in India. However, ensure fulfilling their eligibility criteria and documentation requirements before applying.
3. What is the process of registering a startup in India?
You can register your startup online through the Startup India portal by providing the necessary details and documents.
4. How important is a business plan for a startup in India?
A business plan envisions a company's operations, growth, and potential, convincing lenders and investors to take the risk.
