The idea of starting your own business can be quite exciting to be honest, but the process involved in building a startup can look very difficult to deal. Especially in today’s competitive market, it’s important to carefully lay your business foundation. Here I bring to you a step-by-step guide to help you thoroughly understand how to start a business in India, providing you with valuable insights into new business ideas, startup strategies, financial planning, and more.

What Is the First Thing to Do When Starting a Business ?

Starting your own business requires a lot of patience, focus, and consistency. But before anything else, the first requirement in creating a successful startup in India, or anywhere else, for that matter, is a very much possible idea. It must solve a real-world problem or cater to a specific demand in the market.

  • Define Your Concept : To start a business in India, identify a problem that your potential customers face, and aim your business idea towards providing an innovative solution. Brainstorm a list of small best business ideas, and assess their feasibility and market potential.

  • Market Research : Understand what your potential competitors are doing; this can equip you with knowledge about what works and what doesn’t.

  • Identify Your Target Audience : Knowing your potential customers, their behaviors, needs, and preferences are crucial for the success of your startup.

How to Start a Business in India ? Complete Steps

Once the foundation of your potential business is laid, let’s move towards the “how”: How do you start a business? Here are some key steps to follow:

5 Essential Tips to Start a Business in India

5 Essential Tips to Start a Business in India
Understand Legal Requirements :

Know about all the legal complexities involved in establishing a business as it can save you from potential troubles in the future.

Conduct Market Research :

Carefully analyze the demand for your product/service, the evolving trends, and your competition. This is very important as it helps you understand the position of your start up in the market.

Create a Solid Business Plan :

An overall business plan will guide the way forward for your business. List down the following aspect A. Define your Objectives B. Decide upon your Marketing and Financial Strategies C. Find the way you can achieve your profits.

Secure Funding :

Estimate the capital cost(Initial investment) to start a business, then explore different funding options, like if it is going to be your personal savings, or if you would need to apply for loans, or if you have anybody to invest for you.

Build a Strong Network :

Networking is Key You will need to have contacts and build a strong relationship with suppliers, investors, and your mentors and industry professionals.

What Are the Legal Procedures Involved to Start a Business in India :

The legal procedures to start a business in India are as follows:

Legal Procedures Involved to Start a Business in India
Choose a Business Structure :

The initial step to start a business is to decide your business structure be it Sole Proprietorship, Partnership, Limited Liability Company, Corporation or Cooperative.

Register the Business :

Once your business structure is set, proceed to register it with Registrar of Companies (RoC) in India.

Obtain PAN and TAN:

These are mandatory for all businesses. Apply for a PAN (Personal Account Number); it’s like an SSN in the U.S. and is used for tax purposes. TAN (Tax Deduction and Collection Account Number) is also required.

Goods and Services Tax (GST) Registration:

The GST is a comprehensive indirect tax on the manufacturing, sale, and consumption of goods and services in India, and its registration is mandatory.

Professional Tax Registration:

This tax is imposed by state governments in India and is waived off, on individuals engaged in professional or employment activities. To initiate professional tax registration:

  • Application Submission : Prepare and submit the necessary documentation, including business registration details, employee information, and any other documents required by the respective state authority.

  • Timely Renewals : Ensure to renew all your licenses according to the deadlines with the appropriate documents
Open a Bank Account :

  • Choose the Right Bank : Consider factors such as account fees, transaction charges, and the availability of business-friendly features, and ensure it is in alignment with your needs.

  • Gather Necessary Documents : Prepare the required documentation of your business your registration certificate, PAN, TAN, and any other identification documents as specified by the bank. Having these documents in order will streamline the account opening process.

  • Understand Account Types : There are current accounts, savings accounts, and even accounts customized to specific industries. Understand the features and limitations of each account type to choose the one that best suits your business requirements.
Fulfill Labour Law Requirements :
  1. Following the Labor laws is really important to maintain a positive work environment with legal compliance. Here are key considerations:

    • Fair Employment Practices : By providing equal opportunities, fair wages, and a discrimination-free workplace.

    • Employee Handbook : Develop an employee handbook that outlines company policies, code of conduct, and grievance resolution procedures. Clearly communicate expectations and rights to employees to prevent misunderstandings and potential legal issues.
Environmental Clearance :
  • Environmental Impact Assessment (EIA) : This involves evaluating potential environmental effects and proposing mitigation measures.

  • Engage Environmental Consultants : Collaborate with environmental consultants to ensure compliance with regulations.

  • Monitor and Report : Regularly monitor your business activities for any environmental impact and promptly report incidents or deviations from approved practices.
Obtain Licenses and Permits:
  • Research Applicable Licenses : Conduct thorough research to identify all licenses and permits relevant to your industry.

  • Application Process : Initiate the application process for each identified license or permit. ​
Trademark Registration :

Protecting your brand through trademark registration is a strategic move. Here’s an in-depth look at this essential process :

    • Comprehensive Trademark Search: Before filing for trademark registration, conduct a comprehensive search to ensure that your chosen trademark is unique and not already in use. This minimizes the risk of potential legal challenges and rejection during the application process.
    • File a Trademark Application: Submit a trademark application to the appropriate intellectual property office. Include all required documentation, such as a clear representation of the trademark, details about its usage, and proof of payment of application fees.
    • Monitor Application Status: Regularly monitor the status of your trademark application. Be prepared to respond promptly to any queries or objections raised by the intellectual property office during the examination process.
    • Trademark Renewals: Trademarks are subject to renewal at regular intervals. ​ Failure to renew on time may result in the loss of trademark rights.
Compliance with Industry-specific Regulations :
  • Continuous Regulatory Monitoring: Establish a system for continuous monitoring of industry-specific regulations.

  • Implement strong Ethical Compliance Protocols: to ensure compliance with industry regulations.
Employment Agreements and Contracts :
  • Legal Review: Ensure that employment agreements and contracts are legally sound.

  • Clearly Define Terms and Conditions: Clearly outline the terms and conditions of employment, including job responsibilities, compensation structure, working hours, and benefits.
Compliance with Cyber Laws :
  • Data Protection Measures: Implement robust data protection measures to safeguard sensitive information 

  • Privacy Policies: Develop and prominently display privacy policies on your website and digital platforms. Clearly communicate how user data is collected, stored, and used.
Maintain Compliance Records :
  • Digital Recordkeeping Systems: Implement digital recordkeeping systems to efficiently organize and store compliance-related documents.

  • Periodic Audits: Conduct periodic internal audits to verify the completeness and accuracy of compliance records. ​

  • Documentation Retention Policies: Establish clear documentation retention policies outlining the duration for which compliance records should be retained.

The legalities of starting a business can be complex, but don’t worry, starting a business in India is not all about challenges, it’s about opportunities too. Trusted legal firms like M and M Law Partners can guide you through the process.

For More Detail on How to Start a Business, Contact M and M Law Partners

No matter how challenging the journey seems, remember that there is a pool of resources available to help you start your own business. For more detailed information on how to start a business in India, contacting legal firms dedicated to this domain, like M and M Law Partners, The Best Civil Lawyers in Delhi High Court, can be a good starting point.


1.What are the legal procedures to start a business in India?

Our guide above provides information about this, but for a detailed, personalized guidance, consider seeking advice from a legal firm like M and M Law Partners.

2.How do I start a business with no ideas?

Market research and understanding your passion can help you fish out  your ideas to start your business in India. If you don’t have a particular trade in mind, consider your interests and skills and how they could transform into a business.

3.Is it okay to start a business with no money?

Yes, it’s possible to start a business, but challenging. Bootstrap your idea, look for low investment business ideas, seek initial funding from friends and family, or consider crowd-funding.

4.What is the cheapest most profitable business to start?

Business ideas like consultancy, repair services, or online teaching can be started with minimal investment and have the potential to be profitable.

5.Who is the best business lawyer?

There are many proficient business lawyers in India, but it depends on individual needs. Remember, a good business lawyer is one who understands your business and can guide you through the legal landscape efficiently.

Remember, the best way to start a business requires commitment, planning, and a willingness to learn. This guide hopes to be your roadmap towards the exciting venture of starting a business in India. Happy Entrepreneurship!

I am a leading civil lawyer in India, dedicated to providing expert legal counsel and resolving disputes effectively. With a proven track record of success and a commitment to upholding justice, I strive to deliver the best possible outcomes for my clients. As the top lawyer at MandM Law Firm, I bring a wealth of knowledge and expertise across various practice areas, including civil litigation and corporate law. Join me as we explore the dynamic world of law, discovering the best topics, understanding market trends, and making informed decisions together.