How to start business in India?

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Starting business in India

How to start a business in India?

Starting a business in India is easy, especially if it is a small business. India requires lesser formalities to start a small business than many other countries. Once you have decided to start a small business in India you have to complete some formalities, legal and statutory.

First of all, you have to choose a name for your business and open a bank account (Current account) with that name. You have to provide a genuine address of your business. Evidence of your business address must be supported by relevant documents such as ownership deeds (if you are the owner of the premises) or an agreement of rent or a rent receipt.

You can also furnish your electricity or telephone bill as supporting evidence. You must verify your identity by furnishing your identity verification documents such as passport, voter ID card, ration card, driving license etc to register your business in India.

You need a VAT/ Service tax registration to buy or sell your goods in India. Vat is for selling goods and Service tax is for providing services. You can sell your services legally without service tax registration if your annual earning is less than Rs. 1 million. You have to register with the department and pay tax regularly as soon as your business cross that limit. You can have a VAT/ Service tax registration for a state (province) and / or for Indian territory. You need to provide a bond of the small amount of security deposit.

If you are in manufacturing sector you may have to register for Excise duty. You have to be registered with RBI for import- export business and pay customs duty for importing goods from foreign countries.

Please do not forget to prepare a business and finance plan before starting your business. Success lies in proper planning and implementation of your business idea.

Customs, Central Excise & Service Tax

Logo of Customs, Central Excise & Service Tax department in India, Central Government taxes
Logo of Customs, Central Excise & Service Tax department in India, Central Government taxes
INDIAN REVENUE SERVICE (C&CE) or IRS (C&CE)..  officers are concerned with the collection, administration and policy formulation of indirect taxes  in India, i.e. central excise duty, customs duty and service tax.   Service tax is collected by the sp
INDIAN REVENUE SERVICE (C&CE) or IRS (C&CE).. officers are concerned with the collection, administration and policy formulation of indirect taxes in India, i.e. central excise duty, customs duty and service tax. Service tax is collected by the sp | Source

Plan and implement your business idea

Business is not just buying or selling your goods. Business is altogether a different thing than mere financial activities or transactions. Business is a system or a set of systems required to earn a profit by satisfying needs of your clients.

You have to make a plan for your business which is relevant to your business idea. Planning is the most important and vital part of your business. There is a well-said proverb that if you fail to plan you are planning to fail. So, plan your business well.

PDCA: Plan, do, check, act

PDCA is a good way of making your business effective and efficient. Plan your business and then do according to your plan. Check its suitability and viability. Change or modify your plan if necessary. Do it responsibly. Go with minute details while checking your plan. Act upon your checked plan.

Sky is the limit in Indian business

Building business credit

Your business needs credit. Build business credibility. It often starts from your personal credit. However, business credit is different from your personal credit. You may have your personal credit and personal credit ratings but you have to build your business credit and business credit rating gradually.

Business credit and business credit rating will help you getting finance from banks, financial institutes, and individuals. This will help you in expanding your business.

Your credit is not limited to financial aspects. You have to build your credibility among your clients, especially customers. Your business will grow with satisfied customers. Provide your customers with quality products and services. Maintain timeliness. Timely supply is a keyword to modern business.

Your business can not grow only with quality goods and services but your goods and services should have a competitive price. You have to remember that large numbers of other suppliers are also in the same business and you have to compete with them. Your efficiency will help you in growing your business.

This is true in India and anywhere else.

Listing local business in Google

Marketing and advertising

Marketing is another keyword of present days business. It is not enough to manufacture or procure quality goods in modern businesses. You have to market your products and services well. You have to find customers and convince them to buy you products and services. It is vital for your business. You have to know the taste of your clients and supply products and services according to their choice and needs. It is better to have an in-depth knowledge of social and cultural backgrounds of your customers. Often these affect customers' behavior along with their financial positions.

For example, if your business is related to food and beverages and you are working in north India, you can easily sell Gujiya or Rasogolla. However, it is difficult to sell these items in south India where people prefer Idli or Dosa.

It is better to know the financial position and budget of your niche customers. You can adjust rates of your products and services according to the budget of your clients.

Advertising is also a necessary item in your business plan. It is very difficult to run and grow a business without advertising in modern days. There are plenty of ways to advertise your business. You can advertise your business in India through print and electronic media. Internet advertising is also becoming popular in India. However, the advertisement is becoming expensive and it is difficult for a small business to cope up with a high budget of advertisement.

You can use several means of free advertising on the internet. One of these is registering in Yahoo and Google local businesses for free. There are several other sites which offer free listings. You can also advertise your small business through e-mail and SMS as the internet and mobile phones are popular tools of communication.

It is better to have an online presence. Your website can do the work easily and in a cost-effective way. A well designed and optimized website can attract visitors and make them stay there. Your website, representing your products and services in a user-friendly manner, can turn them into customers. This will promote your business and boost sales.

You can go with mouth publicity also. this is the best way of advertisement for small businesses with small or no budget for advertisement. Do not forget that satisfied customers are your best ambassadors. They bring maximum numbers of customers to your business.

Boosting Small Business Competitiveness in India

India in map

A markerindia -
[get directions]

India is a developing country and emerging market. It is situated in South Asia. This is a very good place for business and business entrepreneurs.

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Comments 42 comments

JYOTI KOTHARI profile image

JYOTI KOTHARI 2 years ago from Jaipur Author

Thanks Scjmot,

Do you want to start business in India? Are you an Indian or a foreigner?

Johm Scjmot 2 years ago

Weldone Jyoti. you have written several business articles and this is great one in the series. Thumbs up and rated useful/ beautiful.

sai 2 years ago

Hi Jyothi...

I want to start a party (simple functions like birthday,babyshower,cradle ceremony etc,not like a big wedding events) decoration I need to take any professional course before starting the business or our own creativity is enough.

Also plz provide the information about the things I need to do before starting the business like company registration,staff maintenance, price to charge for our work etc....

Plz mail me on

Lokesh 2 years ago

Hello Jyothi,

I am planning to start a business of selling clothes through online companies.

Would like to know what all formalities are required from Legal perspective.

Few of them which i cold think of with my linted knowledge. Need information on below & othe required formalities which i may have missed.

1) Registering company

2) Patenting the Brand?

3) Service tax number?

4) VAT??

5) Others which i may have missed.

Would appreciate of i could get some guidance.

Pls reach out to me at

Awaiting your valuable inputs.



abhi 2 years ago


I would like to open a gym and a bakery in the same bulding simultaneously but i have no experience and i'm a beginner .....please

advise me as soon as possible. Avaiting your reply .thank you.

my email :

Prof. Subin 3 years ago

I'm a financial consultant, arranging money from banks, financial institutions, venture capitalist, etc can arrange finance to start/expand the business in India. You've to give me the project report, Passport copy, Driving license and ID proof. Apart from that please tell me how you will be repaying back the money which is invested. My interest rate is as low as 4%. Interested please email me with all details at: or call me at: 09589411750

GAURAV 4 years ago

Dear Sir

My Self Gaurav Sharma(Assi Network Admin)

Now Complate BCA and Apply for MCA from SMU

Now i m working in IT Sector Army Collage Noida

But Now i m start a small bussince that fine and frist i m start a Computer AMC Contract in School I will starting the School

plz Guide Sir

Thanks Regards


Assitant Network Administrator



JYOTI KOTHARI profile image

JYOTI KOTHARI 5 years ago from Jaipur Author

Yes, it is possible.

JAMSHID 5 years ago







Thadrok profile image

Thadrok 5 years ago from Portland, OR

Informative article, nice work. India would be a nice place to live and run a company.

Anwar 5 years ago

very informative article. Thanks you sir. I'm planning to start own business in india.

inamdar.b.pawar 5 years ago

Dear sir,

i want to start new business,the business is that better security peovide to the differnt differnt compnay, in india

I think it is very difficult. but i want to do it..i don't know anything about how to take that all those things licenses, permits, policies, restrictions Bond and Insurance for security business

>> How to set up this business

please send me as soon as possible

i will wait your reply below this email add.

rahul jain 5 years ago

sir i have asked that which business should i start i have no idea but i want to start any business and i have only 10000 rs. ilive in delhi.


rahul jain 5 years ago

hello sir i want to start a business with little bit amt. like 10000 or 20000 which type of business should i start i live in east delhi

JYOTI KOTHARI profile image

JYOTI KOTHARI 5 years ago from Jaipur Author

Pl send your details.

JYOTI KOTHARI profile image

JYOTI KOTHARI 5 years ago from Jaipur Author

Hi Ankit,

This depends on many things such as your educational and family background, financial condition, location etc. Pls feel free to mail me.

Jyoti Kothari

Ankit Sinha 5 years ago


I want to do a small business kindly advise me that what i do in which field.


khadijah 5 years ago

hello, i would like to open a beauty parlour in Dehre Dun, Uttrakhand.

I have a business management degree and have also completed a health and beauty course in England. I wish to open a small business.

How difficult will it be for me to do so. I have the financial means to pay for the building and equipment but am confused on the legal side. Being a british national would i be the same procudure to open a beauty parlour has it would for an indian national?

VINOD SAROHA 5 years ago


Rudra profile image

Rudra 5 years ago

I guess its the right time to start a business in India when the world is in recession. Business in India is a good idea for serious investors.

Raja 5 years ago

Hi Jyoti,

Thanks for posting such an article.

I am planning to start an ecommerce web startup selling t-shirts in india.

I dont have much capital. Is it necessary to register a company to sell t-shirts via my ecommerce site in india?

I would appreciate your advise regarding this.



vcope profile image

vcope 6 years ago from New Delhi

Firstly I would really appreciate Jyoti Kothari for writing such post.Thanks to Internet & e- governance that now starting a business or registering a company has become very easy. Businessmen can either register a firm (proprietorship, partnership, limited liability partnership firm ) or company (private limited or limited)with partial assistance of a Company Secretary or a certified Chartered Accountant. This is because the initial procedures like DIN (Director Identification Number) & Digital Signature can be registered online but application for company name approval, drafting of MOA ( Memorandum of Association & AOA (Articles of Association), paying company registration fee based on authorized capital can't be done without taking a help of any company registration consultant. You can also get the complete procedures to register a company here

JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author


You have to contact some lawyer for detailed process. However, it is easy to start business here. You need capital according to size of your business.

You can mail me for more details.

profile image

terrykular 6 years ago

Dear sir

i lived all my life in england, now i am thinking of returning to india and i want to start a business in india. what are the legal requirements to start a business and how much capital would i need to start a unisex fashion botique. how do i find the wholesalers of the apperal concerned are there any taxes of importing garments what is the percentage of tax , what are the legal documentation costs.

JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author

All necessary procedures are written in he hub in general. Pl contact your lawyer for specific info.

Thanks for comment.

sreedhar reddy singireddy 6 years ago

hi sir..i m very interest to start water plant business..plz tell me what is easy process,which licencess is necessary..

my mail id :

Naman Patel 6 years ago

Dear Sir,

I am a student form America looking fowerd to India. What do you supposed to invest it? I would be looking fowerd to move to west India.


JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author

Hi Soumav,

Registering for E commerce business has similar processes as other business. You need an export license and RBI code to sell overseas.

Thanks for your comment.

Jyoti Kothari

Soumav 6 years ago


I want to start a ecommerce business such as ebook selling in india and internationally. In this case where should i register for this business and what could be the tax obligations.Help would be appreciated.

JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author

Hi Patbess,

Thanks for your comment and compliments.. I am obliged.

Jyoti Kothari

SUBRAMANIAM 6 years ago


JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author



Thanks for sharing and commenting. You have not left any link to reply. Please leave your e mail address or contact me.


Jyoti Kothari

vinoth 6 years ago

Hi, I do have extensive network with MD’s of big corporate in and around Chennai, Tamilnadu. I would like to start a security agency in order to provide guards for commercial and residential properties.

I seek guidance and formalities involved in starting up the security agency company. I need information in obtaining license, insurance, and certification.

JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author


I have already provided general info about starting business in India. Please contact your attorney for specific info.


Jyoti Kothari

SPK 6 years ago

I am an NRE and started a boutique cum beauty treatment centre in Jharkhand . I have registered by business in Municipality and my wife is looking after it. We have just started it. The registration is in my name. Please guide me what are the legal formalities to continue the business. like taking Sales Tax No. VAT, Service Tax etc.


JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author

Hi Ramesh,

Best of luck. Thanks for visiting and commenting on this hub.

Jyoti Kothari

ramesh behra 6 years ago

hello,sir,i am ramesh student of doing charterd a/c and i am thinking of doing business in the field of transport as well as professolanise service like expert in security mkt

JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Hi Skyfire,

There are not too many documentation and law to start a business in India. I have simply written down those in the first para. You can ask any lawyer who will complete the formalities with a small fee.


Jyoti Kothari

skyfire profile image

skyfire 7 years ago

I would like to read about stuff like documentation and laws which are for new business or startups. Any input on that one will be appreciated.

JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Hi Chinweike,

I agree with you. Customer relationship is even more important than getting finance. If one has good customer relationships, funds started flowing towards him or her.

Thanks for your comments.

Jyoti Kothari

Shivank 7 years ago

Is starting business so easy in India? I thought it is very difficult. Thanks for nice info.

chinweike profile image

chinweike 7 years ago from Glasgow, UK

There is one point you made that i love, it made me realise that i am not alone in this thinking."Your credit is not limited to financial aspects. You have to build your credibility among your clients especially customers. Your business will grow with satisfied customers" This is to say that Credit goes beyond the financials, customer relations and credibility is taking a noticeable place in the ranks of business success factor

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