The first step to executing an idea is to start the business legally at a place where you plan to do business. And it can sometimes be complex as you must have already seen in your research online. Some legal requirements are immediate and some are to be done later.
We break all these into 5 simple points and help you understand the legal requirements of starting a small business in India. In order to understand the fundamentals completely we recommend you read all 5 points.
1. You Need a Business Address:
There are businesses such as consulting or tech support which does not need you to rent or buy an office. You work remotely either at home or traveling all around. You need a mailing address which can be your home address or your rented place address too. All you need is proof such as a consent letter from the owner of the property where you live along with the utility bill for this address
2. Brand name or Trademark availability specific to business:
In certain cases where brand name or trade name becomes important for your business checking whether the name you plan is available or not becomes important. In the case of individual contributors where you are providing engineering or finance freelancing services to your clients, only your name is good enough to run the business in the long run and there is no need for a trading name that is also fine. But if you plan to have a trade name then it is the most important task to check the trademark availability.
3. Register your Business:
This is quite a confusing point for many because b registering a business, does not mean company registration in India or GST registration. First, understand this, are you an individual owner or do you have partners with whom you plan to run the business? Are you a goods seller or a service provider? What is your future plan regarding investing is business? Will it be needed or it is going to be self-funded always?
Once you are clear about these questions you have two options First, to run as a sole owner (Which may need gst if you cross gst threshold limit), and Second to form an entity. Entity type could n be a private limited company or a one person company or a limited liability partnership or a traditional partnership firm. Keep reading the below points to have clarity on how this can be simplified
4. Specific Licenses needed for your business segment:
Understand that having a registered entity is not enough sometimes. There are other requirements, for example, obtaining an Import Export code if you are exporting goods/services from India, Shop licenses if you will have a commercial establishment, and Having BIS registration if you plan to be in a business which may affect public or environment, Having APEDA and FSSAI registration if you are entering into agro products and food segments and so on. So the requirement for a license is based on the law of the state or/and country
5. Find a well-experienced Business consultant:
By business consultant, it means a person who is experienced in company registration or legal and tax compliance after company registration. Go for options like ca near me, and talk to a few online chartered accountants. Ask relevant questions then go for a well-experienced business consultant.
If you are able to find a ca online who is experienced, you can let the professional do everything mentioned in the above four points without having to worry about compliance.
If you want to read an interesting blog on what should you look for to find a good CA near me, this could help you find a good business consultant.
Hope this article helped you understand the fundamentals of starting a small business. Knowing the basics is always a great idea as it prevents you from future stress or any kind of legal problems. Tax Vic has professionals such as CA REETU who has helped several individual and businesses across India to execute their business ideas and to run their business by helping them with valued added business services.