By - Akshay Vasantgadkar on October 15, 2022
Are you a business owner looking to expand your business? India is the perfect destination to expand or start a new business. The Indian government began a comprehensive program of regulatory reforms in 2014 with the goal of facilitating easier corporate operations. The initiative is an important factor in the collective efforts to improve the business climate of the country. In 2020, India was ranked 63rd out of 190 countries regarding ease of doing business. India’s ease of doing business index improved due to fully integrating multiple application forms into a general incorporation form, dealing with construction permits, improved electronic submission methods and improved rates of resolving insolvency.
In the last few years, the Indian economy has been facilitating exponential growth via investment opportunities and the emergence of various unicorn start-ups. The Indian economy withstood the onslaught of the pandemic in 2020. The fiscal growth for the year 2022-2023 was projected to be 7.1-7.6% making India the fastest-growing economy . Approximately 60% of the Indian population is engaged in the agricultural and allied sectors . However, due to multiple factors, it can be observed that the service sector comprises a major percentage of the Indian GDP . Apart from the economic climate, the cultural climate affects the ease of doing business in India.
India is a diverse country with a large population of 1.3 billion people, where more than 50% of its population is under 30, providing a tremendous workforce to contribute towards the growth of the country. Every sector in India facilitates an investment opportunity, giving business entrepreneurs an impetus to grow their businesses and scale new heights. Some of the major sectors contributing immensely to the GDP are information technologies, automobiles, pharmaceuticals, healthcare and telecom services.
To encourage entrepreneurs and investors, the central and state governments have made reforms in process of Setting up a business in India . Here are a few reforms:
Business Registration In India is not an easy task. The average time taken to start a business in India is 18 days as compared to 29 days in 2015 . However, every business has some legal compliances to follow before starting business transactions. Here is a step-by-step guide:
India is an emerging market with a lot of potential for new businesses and foreign investment. For entrepreneurs, India is the ideal location for conducting business because of the country's advantageous economic, cultural, and legal considerations. For investors, the anticipated increase in the upcoming fiscal year is optimistic, particularly for those in the information technology, automotive, pharmaceutical, healthcare, and fintech industries. Technology is being used by the Indian government, both at the federal and state levels, to improve economic conditions in the country. Due to the significantly less requirement of complex procedures and compliances, the country’s ranking on the ease of doing business index has increased rapidly.
Even though you are not obliged to register to run a business, especially a sole proprietorship, you must do so to collect and file state taxes. As long as your company is lawful and complies with all licencing and tax regulations, operating an unregistered firm is acceptable.
The government of India has taken multiple initiatives to encourage start-ups in the economy. These start-up initiatives have allowed sustained economic growth due to their many benefits including funding, tax breaks, support for intellectual property rights, streamlined public procurement and access to international markets.
A startup should be running for at least 5 years and individuals applying for the scheme should be above 18 years. A start-up should not be the result of the reconstruction of business and should have an annual turnover of fewer than 25 crores. With certain registrations, companies providing new products or services can apply for the scheme .
The Indian Government develops new initiatives and incentives to support startups in India with the goal of reversing the nation's trend of job searchers into employment creators. To carry out this concept, the Department of Industrial Policy and Promotion (DIPP)/Startup India Scheme for Startups under the Ministry of Commerce and Industry was established.
The five-step plan to get a business registered as Startup with DIPP has been set out below:
Register with the DIPP Startup India Scheme
Collect the documents
Select the tax benefits
Acquire the DIPP Registration Certificate
 Indian economy to grow 7.1-7.6% in current fiscal: Report - Times of India (indiatimes.com)
 Economic Survey: Services sector contributed over 50% to India’s GDP | Mint (livemint.com)
 Embassy of India, Hague, Netherlands : Ease of doing business in India (indianembassynetherlands.gov.in)
 Ministry Of Corporate Affairs - SPICe+ Forms (mca.gov.in)