What are the requirements of starting a business in India?

Posted on Tuesday, May 23rd, 2023 | By Indusind Bank

India’s ever-changing business landscape offers entrepreneurs a wealth of opportunities, but starting a business in India requires careful planning and attention to detail. There are a number of requirements that must be met in order to establish a business in India, including obtaining the necessary licenses and permits, registering the business with the appropriate authorities, and securing funding. 
 
In today’s blog, we discuss the requirements for starting a business in India. 
 
1. Obtaining a business license: Depending on the type of business, you will have to obtain a business license from the appropriate authorities. This license is a legal requirement and must be obtained before the business can begin operations. 
 
2. Registering the business: Businesses in India must be registered with the Registrar of Companies (ROC) or the Registrar of Firms, depending on the type of business. Registration is mandatory and must be completed before the business can start operating. 

3. Securing any necessary permits or certifications: Depending on the nature of the business, you may also need to secure various permits and certifications from the appropriate authorities. For example, a restaurant may need to obtain a food license, while a manufacturing company may need to obtain a pollution control certificate. 
 
4. Obtaining a PAN card: A Permanent Account Number (PAN) card is required for all businesses in India. This card is used for tax purposes and must be obtained before the business can start operating. 
 
5. Obtaining a TAN card: If your business has employees, you will also need to obtain a Tax Deduction and Collection Account Number (TAN) card. This card is used for tax purposes and must be obtained before your business can start paying employees. 
 
6. Registering for GST: If your business has a turnover of more than Rs. 20 lakhs (Rs. 10 lakhs for businesses in the northeastern states), it must register for the Goods and Services Tax (GST). This registration is mandatory and must be completed before the business can start operating. 

7. Opening a current account: One of the most important requirements for starting a business in India is having a current account. A current account is a type of bank account that is designed for businesses and allows for a wide range of transactions to be conducted. It is an essential tool for managing business finances, and without it, it can be difficult to conduct day-to-day operations. 
 
When choosing a current account, it is important to consider several factors. The account should offer a range of features that are tailored to the needs of the business, such as online banking, mobile banking, and access to a wide range of financial products and services. 
 
Another important consideration when choosing a current account is the fees and charges associated with the account. Some banks may offer lower fees, but they may also have restrictions on the number of transactions that can be conducted each month or may charge higher fees for certain types of transactions. It is important to carefully review the terms and conditions of each account and compare them to find the best option for the business. 

IndusInd Bank Current Account – the perfect solution for all your business needs!

If you are looking for a current account that can fulfill all your present business needs and is also capable of supporting your future business growth – go for IndusInd Bank Current Account. With our effortless and instant account opening process, you can now get started on your business journey with minimal paperwork and hassle-free procedures. Our current account offers you the flexibility to personalize your account number with ‘my account my number’, giving you the opportunity to choose a number that resonates with your business. We understand that businesses often require urgent capital needs, which is why we offer quick access to pre-approved loans to ensure that your business runs smoothly, without any interruptions. 
 
To make banking even more convenient, we offer a convenient on-call cheque/cash pick and drop facility, so you can focus on what you do best – running your business! Plus, our user-friendly mobile and internet banking interface makes it easy for you to keep track of your finances on the go. And with our fully digital current account opening process with video KYC, you can now open an account from the comfort of your home or office. 
 
So why wait? Switch to the IndusInd Bank Current Account today and experience banking like never before! OPEN NOW 
 
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.