With the Indian government pushing the idea of entrepreneurship to further boost the economy, the startup craze in India has grown significantly. Whether it is the adulation received by the startup founders or the big numbers of raised capital for business growth, several factors attract the new generation of entrepreneurs to start a startup company, hence making the startup space hot and happening.
Being home to the third largest startup ecosystem in the world, India has more than 65,000 startups (as of Mar 2022) as per the data from the Ministry of Commerce & Industry. In terms of funding, Indian startups have raised $42 billion in the year 2021, says a credible report. All these numbers paint a bright picture for many startup enthusiasts to come up with their own startup companies.
If you are one of them, you might already have a startup idea in mind or are on the lookout for the best one that matches your interest while also addressing a market gap. Before you make the decision to join the league of startup companies in India, it is crucial to learn how to start a startup in India.
We’ve created a checklist for you to answer various questions and doubts you might have about how to start a startup company in India.
9-Step checklist to start a startup company in India
Check if your startup idea is feasible
While anyone can think of a business idea to start a startup in India, not every idea is feasible enough to be taken forward. If you believe your startup idea can address a market gap, it is important to dig deeper and check its feasibility in the long run as a part of learning how to start a startup in India.
To take a step further, you need to ask yourself the following questions:
- Is your idea really going to solve a problem that a significant group of people face?
- How much revenue can you expect from your startup in the beginning?
- Is there a market for the kind of product/service you want to offer?
You need to research relevant market surveys and competitors to better understand the feasibility of your business idea.
Also Read: 260 Food Business Name Ideas You Can Consider For Your Food Startup
Create a business plan
Once you have checked the feasibility of your idea to build a startup company, the next important step is to create a business plan. Ideally, this plan should work as an overview of the entire business and include details like:
- Company description
- Opportunities and market size
- Problems to be addressed
- Business model
- Management & organisational structure
- Operational plan
- Financial plan
- Marketing plan
With a well-defined business plan by your side, you can easily have a holistic view of the entire business process and give you the right directions to learn how to start a startup in India.
Arrange funds to start a startup company
To start off, you need funds for your startup, which can be arranged in several ways, such as:
Your savings/earnings
If you have saved a certain amount over your working years, you can use it to fund your startup company. This is indeed one of the best ways to build the foundations of your startup. In case you want to know how to start a startup in India with no money, your business idea should be attractive and strong enough to compel investors to fund your startup.
Angel investments
You can also outreach angel investors in your business niche for investments in exchange for shares of equities in your business. However, you need to prove to these investors that your business idea is worth investing in.
Bank loans
The idea of sharing the ownership of your startup with an investor does not sound good to many individuals in the early stage. This is where you can benefit from startup-friendly bank loans. Once you have learned the basics of how to open a startup in India and the company is up and running, you can proceed with securing other modes of investment.
Select the right legal business type
The next important thing in starting a startup company is to select the right business type, which can be any of the following:
| Legal Business Type | Best Suited For |
| Proprietorship | Individuals willing to start a startup with limited resources |
| Partnership | Individuals who want to build a startup together as partners |
| Private limited company | Businesses that have the potential to scale up further with external investments |
Get your startup company registered
Depending on the most suitable legal business type, you need to get your company registered. This can be done with the help of a chartered accountant or tax professional who will guide you through the necessary steps and processes involved.
Register the company in Startup India program
You can also benefit from registering your startup company in the Startup India initiative run by the Indian government. This will help your company to be recognised as a startup by the Department for Promotion of Industry and Internal Trade (DPIIT) and provide you with a host of benefits, including easier compliance, tax savings, and IPR fast-tracking.
For more details about the Startup India initiative, click here.
Apply for the intellectual property rights
As a part of learning how to start a startup company in India, you would want to have a unique brand name, logo, and other creative assets for your business. Unless you protect these assets legally, any other business can use the same name or logo for commercial purposes. Hence, it is quite important to get all the necessary intellectual property rights. This means getting a trademark for your business name and logo, owning a domain name for your startup company, etc.
Build the digital presence of your business
With almost every consumer segment exploring products and services over the internet, it would be best not to miss building a solid web presence for your startup company. You can do this in several ways, including:
- An attractive website for your consumers that reflects your brand
- Brand profiles on several popular social media platforms
Based on the nature of your business, you can proceed with selecting the right mix of marketing methods to further boost brand visibility.
Rent a workspace to get started
In the start, either a home-based office or a small rented office space would be enough to accommodate your core team members and manage the operations. As you scale up, you can invest in a proper workspace in a good business location and get all the amenities you need.
Although this will not be an immediate concern in the initial stages of your startup company, having an attractive office space makes sense when you have clients and investors visiting your business location.
Recommended Read: How to Choose the Best Payment Gateway for Your Startup
Conclusion
As you can see here, building a startup in India from scratch is not as easy as it may seem. You need to get everything in order before you begin the operations of your startup company. Along with having the startup mindset, you also need to be patient while following the steps mentioned above and see considerable results.
