The first step you should take when exploring how to initiate a business startup is to find an issue and it’s probable solution. Successful startups first come up with strong business ideas that fill the needs of customers.
However, your concept doesn’t always have to be a new one. As a startup, you can even innovatively update present products or services for your consumers.
Let’s further explore the startup ecosystem.
Some Facts about Indian Startups
India has the 3rd most powerful startup ecosystem in the world; projected to observe YoY progress of 12 to 15%. Furthermore, there are 50,000+ startups in India, and around 8,900 to 9,300 of these valuable startups are in the technology domains. The statistics indicate that 2 to 3 technical startup businesses commence each day.
When discussing the top business startup across India, names like Flipkart, Paytm, Zomato, Swiggy, or Ola, cannot be forgotten. These are the actual applications that have hand-picked India into the top position in the startup business ecosystem of the world.
Drivers of the Startup Ecosystem in India
The global enterprises comprehend the disruptive likelihood of Indian startups and thus invest in them. Instances of corporate backing in India include:
- Facebook is partnering and investing in Indian startups. Recently, the company disbursed cash grants of around $50,000 each to the best five Indian startups.
- The 10000 Women program by Goldman Sachs offered women entrepreneurs corporate training, guidance, and access to funds for startup businesses.
- Microsoft Ventures Accelerator Program in India has freshly chosen sixteen leading startups.
- The Indian Government is comprehending the worth of working with disruptive innovators and leveraging their innovations to enhance public service delivery.
- Animal Husbandry and Dairy Department awarded the best startups in 5 groupings with prize money of 10 lakhs INR.
- More than 26 states in India have specific startup policies.
Types of Businesses for Startups in India
The startup business founders can get confused with an utter number of necessities the Government places on different types of businesses. To make this progression straightforward, here are the significant features of each type of business entity:
- Private Limited Company: A startup company can choose this business structure as it enables external funding to be raised effortlessly, bounds the liabilities of its shareholders, and allows them to provide employee stock choices to bring onboard skilled employees and stakeholders. Since these entities arrange board discussions and file yearly returns, they are considered more credible than an LLP or General Partnership structure.
- Limited Liability Partnership: This type of business entity where one joins as a partner, as opposed to a director, in a Private Limited form of company. Most startup businesses go with a partnership form since there is lesser compliance.
The other positive point of this structure is that it binds the liabilities of its partners to their business participation and provides every partner shield from negligence or ineffectiveness of the other partners.
- General Partnership: It is a distinct business structure that involves two or more individuals operating a business as per the Partnership Deed. This structure is less preferred as partners have unlimited liability, which means they are individually liable for the business debts. This structure is a practical choice for home businesses that cannot take on any business debt. Company registration is elective in the case of General Partnerships.
- Sole Proprietorship: It is a business owned and handled by a single person. You could have it operating within ten days of application, making it handy in the unorganised segments, predominantly small-sized traders and merchants. They are recognized by a service or sales tax registration.
- One Person Company: It is better than a sole proprietorship. It offers a single promoter complete control over the firm while restraining liability to participation across the business. This individual will be the mere director and shareholder. So, there is no possibility of raising equity funding or providing staff stock options as a startup business.
Startups Should shield their Intellectual Property by Leveraging their IPR
Once the essentials of deciding the precise business structure are opted, IPR assists in distinguishing your business from the competition.
IPR offers you benefits like:
- Can sell or licence for building an added revenue channel.
- Provide unique products/services to your clients.
- It can turn into a vital part of your branding tactics.
- Intellectual properties are assets that you can leverage for loans.
Use your IP smartly, making it more logical to safeguard your business and legally defend your Intellectual property. Follow these tips:
- Shield Intellectual Property against infringements by other players.
- You can protect it in the court of law to entitle your sole right to the same.
- Can lawfully avert other players to utilise, making, selling, or importing without your consent.
- You can receive royalties by licensing it or making funds selling the same.
Here are the categories of IPR that businesses could necessitate
- Copyrights: A specific shield is automatically provided to the author for their unique, inventive, or rational work. A startup can make the Copyright registration request obligatory to safeguard the exclusivity of their work.
- Trademarks: Startups can register their trademark digitally as this acts as a brand component distinctive to your products and services from other players in the market. It generates a discrete identity for your startup company and thereby secures a business brand from being imitated.
- Patents: A patent can be applied by a business startup when exploring to shield an original discovery or invention and can be leveraged uniquely to ease people’s lives.
Legal Fundamentals that All Indian Startups Should Know
- Validation of a business structure and founders’ contract
- File applications for business licences
- Understand taxation and accounting rules
- Study and follow labour laws
- Ensure safeguarding of intellectual property
- Confirm current contract management guidelines
- Particulars related to winding down the business
This scenario brings us to the end of our comprehensive guide covering all the significant facets of startups in India. We have discussed almost everything you require to follow, comprehend, and practice to run a flourishing startup business in India.
Today, India’s startup ecosystem is an illustrious story, and many leading companies are doing substantial work in this domain.
With the new approach of its Startup Accelerator Program, India’s top telecom service provider, Airtel, aspires to back the formation of a dynamic ecosystem for startups which effectively contributes to digitising India.
Airtel has partnered with Cisco and Google Cloud to introduce ‘Airtel Office Internet’- a Broadband internet for businesses to quicken the digital transformation of startup businesses.
Furthermore, Airtel assists startups with Mobile corporate postpaid connections and Internet leased line solutions and enables dedicated high-performance Internet for startups to run their operations smoothly.