Those on the way to turning their business ideas into a full-fledged company are obsessed with how to start a startup in India. To be honest, it is not so easy.
Your startup might seem to be failing in the initial stages. Apart from the outer challenges, you might struggle internally for tax compliance and drawing boundaries for various positions in your startup.
As the traditional definition of a business idea says, you must bring a product or service that solves your customers’ problems. But, the secret behind maintaining your startup’s reputation is tax compliance. Thus, getting the right consultation is important here, especially from the beginning.
When to Start a Startup
There’s no such perfect time regarding when to start a startup. So, you may begin turning your plans into reality in the following situations.
Situation #1
You have studied your target customers very well and it’s ok if you don’t have their every detail. Just remember the important points and go ahead.
Situation #2
The date has arrived! Your skilful team will come with business plans and they won’t stop. So, set a date to wrap things up and launch the startup. Only ensure that you don’t throw a dart randomly or by pressurising anyone.
Situation #3
Your customers are already buying your products. So, it’s time to turn a small-scale entrepreneurship into a growing startup.
Situation #4
You have to do it as soon as possible. Your research might never end. So, if you have found the best startup plan and you want to be ahead of your competitors, just proceed. Remember, the best startup plan is the one after which, no plan looks perfect to you.
Situation #5
You are ready for the tedious tax filing process. It is an important and mandatory process. It is recommended to leave these issues for a reliable tax consultant so that you can focus on your business operations.
How to Start a Startup in India
There are already numerous startups getting launched and tax compliance is not a challenge to them anymore. Thanks to the reliable tax consultants.
The steps to start a startup in India:
Step 1: Find the Target Audience
- Conduct surveys
- Do market research
- Get professional advice
- Bring unique solutions to your target customers
- Have a practical and scalable idea
- Create a brand identity
Step 2: Find the Best Team Members
- Find the partners and directors you can trust
- Find skillful employees with complementary skills
- Promote a cheerful, positive and supportive environment for everyone to thrive
Step 3: Build a Business Hierarchy
- Draw boundaries for different positions
- Distribute the roles and responsibilities
Step 4: Build an Overall Framework
- Do a SWOT analysis for your startup
- Finalise the company description
- Put the burden of taxation in safe hands
- Work on maintaining secrecy
- Strive to maintain the reputation
- Make a financial framework
Step 5: Find Investments
- Be able to explain your business idea to your investors
- You might get investments from equity holders and crowd-funding
- Some banks provide business loans under certain conditions
Starting a Startup While Working
Starting a startup while working is possible and we have examples of various famous personalities. You won’t have pressure to succeed or employees to be paid to if you have started a startup in this case. The boat might sink but you won’t.
Your Checklist for starting a startup while working:
- Do what you love
- Reserve some time with a ‘do-not-disturb’ tag
- Focus on business model than business plan
- Know when to quit and what to quit
- Utilise every second while working on the startup
- Make strategies that win over hard work
- Focus on your business and leave the tax compliance in safer hands
- Think simple and make it fun!
- Save time for yourself and your loved ones too!
The Best Place to Start a Startup
You may rent a property, buy one or find your home as the best place to start a startup. However, remember that the place you choose comes with some tax registrations and compliance requirements.
You may start a sole proprietorship from your home. Similarly, you may use your residential address for your One Person Company or LLP. You may use residential and non-residential addresses for your business though commercial addresses are preferred more.
Thus, you may rent a property, buy one or use your residential address as your business address with various regulations.
Startup Registration with the Right Tax Consultant
Startup registration comes with a long process and a long list of documents. Moreover, you have to look for the changes in the law with a hawk eye which might be painstaking to you and that’s not an end of how to start a startup in India.
Once you start hiring employees and run business operations, filing taxes and their returns will be mandatory (according to the company type). However, you may leave these tasks for your tax consultant for the following reasons:
- Get a business structure advice.
- Get the best out of the Startup India scheme.
- Get precise financial advices for better cash flow.
- Enjoy maximum tax benefits you might be unaware of.
- Stick to ongoing tax regulations.
- Have a smooth and easy startup registration.
- Focus on your startup and let them handle your taxes.
Remember that your tax consultant knows about the tax laws better.
Final Words
Having a business idea, launching a startup, selecting the best place and registration is not all about how to start a startup in India. You need to go through a lot of paperwork and taxation. A minor mistake can land you in trouble. Moreover, it is going to affect your reputation. So, choose a consultant wisely just like you did for your business idea, target customers and business partners.
Accurate Startup Registration & Tax Preparation in India
FAQs
What Legal Requirements Do I Fulfill for My Startup?
Fulfill legal requirements such as registering the business, obtaining necessary licenses and permits, complying with labor laws and tax registrations.
How Do I Validate My Startup Idea?
Conduct market research, customer surveys and build a minimum viable product (MVP) to validate your startup idea.
How Do I Find the Best Legal Structure for my Startup?
Consider ownership, liability, taxation and ease of setup to find the best legal structure for your startup.
What Are the Common Challenges for Those Who Started a Startup?
The common challenges faced by the startups are funding, competition, team building, market entry, and scaling the business. Several startups are opened with a lot of dreams but get closed after some time, while some turn into full-fledged companies.
How to Start a Startup in India with a Strong Team?
Hire skilled professionals, offer equity and create a positive work culture to start a startup with a strong team.
