Business is a unique way of getting exposed to the market in a way of producing the products and effective marketing them. Every people have dreams to make their own successful business in India. Yet there are many things which are required to be considered before starting of the business. All these factors will govern the success which your business will receive.
It is also required to carry out a proper study about the product or service which we are going to launch. This will require getting knowledge about the ways in which we can deliver those products or service and also getting information about whether the market requires them. It better to prepare a project feasibility studybefore starting a business in order to understand the viability of the business and explore additional revenues. Still, starting a new business is exciting for the number of individuals as it will make you aware about different parameters which are required to make your business successful.
Benefits of Ease of Doing Business in India
There are a large number of factors which are going to affect any of the startup company. It will require to have proper support from the side of the government and also the general public to ensure that business can run without facing any kind of hindrance. For that Government of India has launched Ease of Doing Business as an index which measures how effectively a business can be started in India.
Many parameters are taken into consideration for calculating this index. The index is basically calculated by having the aggregate figure of different parameters which defines the ease of doing business in the country. Aggregation is done of the distance to frontier scores which will help in getting the index. Distance to frontier scores will be calculated for all the parameters which are likely affecting the “Ease of Doing Business”. These scores are then aggregated to get the final index.
Some of the parameters which are considered for the computation include construction permits, registration, credit, tax payment mechanism and many more. All these parameters are likely to affect the individual who wants to effectively start their business. It will make them run the business with lesser chances of hurdles in their way. Ultimately they can focus over expanding and growing their business rather than working on these parameters.
Steps which should be done for starting a company in India
There are few of the steps which will facilitate you for starting a Company in India. We have discussed them here which should be followed to help you with the smooth running of your business.
- Director Identification Number (DIN): You can obtain the provisional DIN number which will require you to fill up the form DIN-1. This form is available online which must be filled up and then taken a print out with signature to be sent for the approval to ministry. It is also required to attach the identity proof. When you get the approval you will be getting a permanent DIN number.
- Digital Signature Certificate: One can get this with the help of one of the six private agencies which are authorized by MCA 21. For getting this approval it will be required to submit the application form with the attached identity proof and also of the address.
- Reserving company name: It is required to have a unique company name for your business. This can be even done online over the MCA 21 website. You will be provided the facility for submitting about 6 names which when approved will be visible over the website.
- Stamping documents: Create a request for stamping the documents which can further be followed by unsigned copies of Memorandum (INC-33) and Articles of Association (MAA) (INC-34) and also the payment receipt with them. All these things should be duly stamped and signed with the desired information filled.
- Company incorporation: You can fill up the form INC-32 (SPICE) which is available online over the website of Ministry of Corporate Affairs. It even includes the consent received from the initial directors and the signed and stamped form received from MAA which must be attached. The share certificate has to be issued after receipt of certificate of incorporation. Certificate of commencement of business (INC-20A) has to be filed within 180 days of incorporation.
- Making of seal: It is required to have a seal for the purpose of issuing certificates and other documents for your company. The cost which you will incur will depend on many parameters which include words to be engraved, the number of seals required and time period.
- Obtaining PAN number: You can do the application of getting a PAN card using the form 49A. Once you receive PAN, you will also get a printed copy of that. There is a facility where the application of PAN can be made online, but the documents are required to be sent physically for the purpose of verification.
- Tax Account number (TAN): This application should be done using the form 49B. You can submit this application at any of the TIN facilationcenter. It will further be sent to the Income Tax Department and then finally TAN will be issued. One can do the application either online via the platform of NSDL or even via an offline module.
- GST Registration: The Company upon incorporation may apply for registration of GST if it satisfies the turnover criteria.
- Evaluate whether registration’s under other laws such as PF, ESI, MSME, Startup India are applicable for the company.
All these things will be ultimately useful for running your business smoothly. It will facilitate different tasks to be performed easily once you have completed theseformalities. This can favour you to ultimately focus on your business so that you can achieve higher output from the business which you are doing.
Once your business is out with the product, the most important thing would be capturing the customers. Get the desired market knowledge to judge how you can sell the product or service which you are providing in the market.
Thus, we can say that there are numerous factors to be considered before starting a business in India. It is also required that they are able to run the business effectively and easily without getting entangled in different processes. This is governed by the Ease of Doing Business index.All of these factors are important to ensure that business gets the desired success when it comes in the market for getting the targeted customers. Entrepreneurs are required to plan for the unwanted things or loopholes which might hinder their growth to ensure smooth flow of the processes.
If you require any further details in connection with the incorporation of business or preparation of feasibility study or investor deck about the project , kindly contact us firstname.lastname@example.org