Introduction to startup in India
India is one of the biggest countries to house innumerable start-ups. Nowadays startup in India are very much in trend. Most of the person in India wants to be an entrepreneur. But here it is not an easy task to be an entrepreneur. It needs a lot of effort to have a good startup.
Many startup companies like Ola, Flipkart, Paytm, Zomato, and Urbanclap are very successful in India. Startups need a lot of patience. They started small too. For instance
Flipkart is one of the biggest e-commerce platforms in India, was started by IIT Delhi alumni and ex-Amazon employees. It was started as an online book retail store is now India’s biggest online retail platform. Many more startups share the same stories as Flipkart Many new startups are emerging in India with a lot of potentials. According to a report by Nasscom India is the third-largest start-up ecosystem in the world, adding more than 1300 tech start-ups in 2019.
Although, all that glitters is not gold and it’s the same with the startups too. With the increasing numbers of startups launching, an equivalent number of startups have been closed. The IBM Institute for Business Value recently surveyed in collaboration with Oxford Economics. As per the study, it was found that the lack of initiative by the government, infrastructure facility, innovations are the main reasons the failure of an Indian startup.
The survey was filled by about 1,300 Indian executives, including approximately 600 startup entrepreneurs, 100 venture capitalists, and 100 government leaders, 500 leaders of established companies, and 22 educational institution leaders.
Many forces are responsible for the birth of a startup. Like money, a great idea, and many more things. Before starting a startup there is so much an entrepreneur has to think and analyze. Let’s get into how to start a startup in India:-
The idea of a Startup
Every great startup begins with a great idea. But it takes lots of effort to put that idea into practice and make it successful. Having a great idea is just a beginning for a successful startup. After that, there are a few necessary steps that you can take so that you can execute your idea well. A great idea should provide something new to the customers. You should know about your target customer. Know about the existing competitors so that you can provide better service than them. After having all the answers you can move to the next step.
Do your market research
A great idea needs a willingness to take action on that idea to make it to reality. Every entrepreneur has big ideas about their startup but only a few of them have will power to make it successful. For this, an entrepreneur needs to conduct market research to know where they stand with their idea and if their idea is worth pursuing further. An Entrepreneur can start their research by writing down the problems their idea will solve. For the next step, they need to figure out how many people will have benefit from your idea. While this might give the entrepreneur an excellent idea for their product. It would not give the idea that how many of these people will need this problem solved or pay for it. For that, they need to do a proper survey for potential customers or take feedback from them. After getting the results they know their standing in the market. Note, once you have progressed from the initial stage and conducted a thorough competition check, please keep all of your results and data with you as would be helpful to know the future fundings are coming from.
Find a Team
You cannot do everything on their own in a startup having a great initial team is very critical for a startup to grow. Creating the initial team is a very tough job. First, it is important to know who to hire? Core skills are important for a startup so you need to know about the core skills that you need for your startup. Many core skills like a developer, sales, marketing, and others depending upon the nature of your startup will provide a great boost to your startup. Once you have the checklist of skill sets it is easy to hire people according to their skill sets. But make sure skill sets of the team do not overlap.
If there are 2 or more than 2 co-founders, you might not need any further addition to the initial team.
Hire people who enjoy working in a startup and willing to learn new things.
Getting your company incorporated
Incorporating a company is a big deal for a startup. It will affect aspects of its lifecycle. Incorporating your startup means getting it registered as a company with the Registrar of Companies (ROC). It gives a legal existence to your startup and is the first thing you should do when you start generating revenue and see growth. In India the company will be formed among the following:
- Private Limited Company
- Public Limited Company
- Unlimited Company
- Limited Liability Partnership (LLP)
- Sole Proprietorship
- Joint Venture Company
Under Companies Act and relevant laws has also the provisions of getting your company incorporated as
- (a) Liaison Office,
- (b) Project Office,
- (c) Branch Office, or
- (d) Subsidiary Company
Registering a company in India costs around INR 6700 and you can register it online without the vision of any office.
Once the company is registered, now you can open a bank account, register for GST, and can start selling or approaching investors.
Secure intellectual property and rights
Before beginning a startup in India you have to check whether you can really begin or even own the startup. For this, you have to make sure about licensed innovation rights and examination on the off chance that they are as of now not protected or reserved. The surest way a startup can prevail against bigger opponents is by protecting its developments and creations. Licenses make everything fair among new businesses and officeholders by guaranteeing the individuals who develop are enough compensated. IP rights incorporate licenses, brand names, and copyright. All rights are significant for the achievement of a startup. You should make sure about IP rights at the earliest reference point of the startup. This will likewise tell you about the “copycats” in the market.
Enrolling Startup in India with “Startup India”
Under the Startup India activity, qualified organizations can get perceived as Startups by the Department of Promotion of Industry and Internal Trade (DPI), to get to a large group of tax breaks, simpler consistency, IPR optimizing, and more. Enrollment is exceptionally basic. You can do it without anyone else’s help online by finishing the straightforward online structure and transferring the necessary reports. Pick a work environment For executing your field-tested strategies you have to have a working environment. The working environment ought to satisfy your requirements just as your organization’s needs. Where your work additionally influences your startup as you’re getting off the ground and having the correct condition is essential to your group.
Raising the Fund
The entrepreneur has an option to funds their startup in India is angel brokers, incumbents, equity stakes in the market, financial banks, private fundings, and brokers. One of the key difficulties looked by numerous new businesses has been getting to back. Because of the absence of experience, security, or existing incomes, business people neglect to draw in speculators. Also, the high-chance nature of new companies, as huge rate neglect to take-off, puts off numerous financial specialists. To give financing support, the Government has set up a reserve with an underlying corpus of INR 2,500 crore and an all-out corpus of INR 10,000 crore over a period 4 years (for example INR 2,500 crore for each year). The Fund is in the idea of Fund of Funds, which implies that it won’t put legitimately into Startups, yet will take an interest in the capital of SEBI enlisted Venture Funds.
The Fund of Funds will be overseen by a Board with experts from industry bodies, the scholarly world, and effective Startups. Life coverage Corporation (LIC) will be a co-financial specialist in the Fund of Funds will add to a limit of half of the SEBI enlisted Venture Funds (“little girl reserves”). To have the option to get the commitment, the little girl store ought to have just raised the equalization half. The Fund of Funds will have delegates on the leading body of the endeavor support dependent on the commitment made.
The Fund will guarantee backing to an expansive blend of segments, for example, producing, horticulture, wellbeing, training, and so on.
Conclusion of Startup in India
It is concluded that starting a startup is not so difficult task to achieve. It just required passion and compliance to regulate the startup. India provides all the way all resources, financial help, the manpower workforce, and government support to smoothly, effectively administer the new startups.
For any details, queries and to know to the procedure, you can contact setyourbiz. And for all types of compliance and registration, you approach us. We have a team of a highly qualified professional who handles the compliance process. We provide all services in one place with affordable rates. Your compliance partner