How to start your Business under GST online – 5 Steps to starting a business in India

by Paras Mehra 8.97K

Through every morning is just the same for most of the people, but the morning on 1st July, 2017 will not going to be the same. By the stroke of mid night when the whole world sleeps India will awake to witness a historic change a moment which comes rarely in the history.

As said, GST is everywhere and hence, new businesses are no exception. The whole India is redefining its strategies to counter the balance with GST. Hence, starting the business in India shall also need to be redefined so that new business can easily turn up and start their business in India.

Let us discuss how to start new business under GST regime

#Point No.1 – Defining the business – What’s your business idea

The first step is to determine what you business idea is and how will you earn profit out of it. Through, now a day, business/startup mostly focuses on building team, traffic, users rather than profit.

Whatever is your objective, you must have it clearly because this will define your next steps.

#Point No.2 – Calculate how much funds are required and define the sources

Finance is the lifeline of any business and hence, it is one of the most important calculations of the business. Further, this is where terms between the partners/founders should be defined. You must decide on the following terms:

Who will invest and how much
How the equity or the ownership shall be divided
How profits will be shared
Promise to be committed
If business need further, investment then who shall invest and how much.
How much equity shall he get for further investment?

Once you have defined the set of rules, then you may proceed to next step.

#Point No.3 – Choose your form of business and go for registration

In India, there are various forms of business are available. Hence, the form of business should be chosen very carefully and very cautious because whatever form of business you choose it shall have a long lasting impact on your business.

Let us discuss few forms and when they should be adopted:

Private company registration – You must choose private company to start your business if you are dealing internationally or you are a startup and looking to raise funding in the near future. Further, all the big companies, like PAYTM, Snapdeal etc were initially started as a private limited company.

It may cost you Rs.13,000 to register private limited company.

Partnership – In case you do not want to have a corporate identity, then you may register partnership firm. However, choose this form only if you are into traditional business like trading, service provider etc.

#Point No.4 – Take GST Registration in India

Now, this is something which needs all your focus. Earlier, you need to apply for different tax registration to start your business. There used to VAT registration for traders, service tax registration for service providers, Excise registration for manufacturers. However, under GST regime, only GST registration is sufficient for all compliances.

However, kindly note the following points in this regard:

GST registration shall cost you around Rs.1,599/-
GST registration will be done in 3 to 7 working days.
Once GST registration is done, then you shall require an accountant to comply with GST requirements.
Three monthly returns are required to be filed.
Each and every invoice needs to be uploaded to the government.
You need to keep all the mandatory records at the principle place of business.

#Point No.5 – Take Trademark Registration

Apart from the business registration and GST registration, securing your brand is another big task. In this world of cruel competition, keeping your legal right is very important.

Hence, trademark registration will help you to secure your brand so that no one can copy it easily.

Conclusion

We have written the above 5 points because they are very important when it comes to starting your business, any mistake may result in failure.

In case of any doubt, do write to us at info@hubco.in

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