Having a business idea is great. But how to start one? What are the things to keep in mind before starting a business or an LLC/PVT? Whether you’re planning to launch a new venture or already have a small business and want to improve its operations, here’s a comprehensive guide to help you get started.

1. Business Idea & Planning: Create a detailed business plan outlining your goals, strategies, budget and financial projections. A good business plan comes from thorough market research and aligning your passion and skills accordingly.
2. Legal Structure: Choosing a right legal structure for your business is one of the crucial steps. For a better understanding on this topic, please refer to our blog relating to Legal Structures.
3. Funding: Explore options from small business loans or grants from government agencies or private lenders. Look around for investment from angel investors or venture capitalists if your business has high growth potential. Self funding can also be an option for a small business.
4. Finances: Create a budget that covers initial startup costs, such as equipment, inventory, marketing, and legal expenses. Open a separate business bank account to keep personal and business finances separate. Set up a system to track income and expenses, and consider using accounting software or hiring an accountant.
5. Location & Equipment: Determine whether your business needs a physical location and if so, find a suitable place.
6. Marketing & Branding: Create a unique brand identity, including a logo and business website. Develop a marketing strategy that can include online marketing and offline marketing tactics to reach your target audience.
7. Operations: Establish efficient workflows and standard operating procedures (SOPs) to streamline your operations. Implement inventory control systems to manage stock effectively. Prioritise excellent customer service to build a loyal customer base.

Apart from the above fundamentals, if you are setting up a PLC few mandatory compliance requirements have to be accomplished in the journey of the business. They are:

1. Check the availability of your desired business name and reserve it with the Registrar of Companies (RoC)
2. Acquire a digital signature certificate for the proposed directors of the company. It is necessary for online filing of documents with the RoC
3. Draft the MOA and AOA, which outline the company’s objectives, rules, and regulations. These documents must be filed with the RoC during the registration process
4. Register your company with the RoC by filing the necessary documents, including the MOA, AOA, and application for incorporation (e.g., Form SPICE+)
5. Obtain a PAN card from the Income Tax Department. It’s essential for tax purposes and financial transactions.
6. If you have registered as a PLC, make sure you file for commencement of business form with ROC, before you start your business.
7. If your business will deduct or collect taxes (e.g., TDS), apply for a TAN from the Income Tax Department
8. Register for GST if your business’s annual turnover exceeds the prescribed threshold. GST is a value-added tax applicable to the sale of goods and services
9. Register for professional tax with the relevant state authority. The registration process and rates may vary by state
10. If your business involves international trade, obtain an Import Export Code from the Directorate General of Foreign Trade (DGFT)
11. Obtain a Shops and Establishment License from the local municipal corporation or panchayat, depending on your business’s location
12. Comply with labour laws and regulations, including minimum wages, working conditions, and employee benefits. Maintain records of employee attendance, salaries, and other related data
13. If your business has the potential to impact the environment, secure the necessary environmental clearances and permits from relevant authorities
14. If applicable, protect your intellectual property by registering trademarks, patents, or copyrights with the respective authorities
15. Open a bank account to business to manage your finances and transactions separately from personal accounts
16. To keep accounting data organised and to make sure all transactions are accounted for, businesses follow a monthly closing procedure, a series of steps to review, record, and reconcile account information.
17. It is important to note the annual financial books closure date will be March 31st & Income Tax Return filing due date will be July 31st or such other due dates prescribed for different type of entities.
18. It is imperative to regularly deposit undisputed statutory dues such as Goods and Services Tax, provident fund, employees’ state insurance, income-tax, Professional Tax, customs, excise, value added tax, cess and any other statutory dues to the appropriate authorities
19. GST, PF, ESI, PT, TDS will have monthly due dates & Income Tax will have annual due date
20. Companies incorporated under the Companies Act  2013, As a part of Annual Filing are required to file the eForms with the Registrar of Companies (ROC).
21. Companies need to maintain Viz. Register of Members, Register of Directors/KMP, Register of Loan, Contract and Arrangement, Register of Related Party Transactions. Etc.
22. A company must hold at least four board meetings in a financial year with a maximum gap of 120 days.
23. Every director must give his/ her Disclosure of interest to the company in form MBP-1 as prescribed under the Companies Act, 2013.
24. Every Director of the Company to submit the annual disclosure of non-disqualification in form DIR-8. It is a declaration that the Director has not been disqualified to act as Director during the previous year.
25. Audited Financial Statement for the financial year ended March 31st to be prepared and approved in the Board Meeting within 30th September
26. All companies to hold its AGM once in a year, within six months of the closure of the Accounting year
27. MSME Return (Half yearly) to be filed in Form MSME-I by Companies in respect of all outstanding dues of more than 45 days of Micro or Small Enterprises suppliers.

It’s essential to consult with legal and regulatory experts, such as business consultants, to navigate the specific requirements and regulations applicable to your business. Failing to comply with these mandatory requirements can lead to legal issues, fines, or the closure of your business. Compliance ensures that your business operates within the boundaries of the law and establishes a foundation for long-term success.