The first thing that you need to keep in mind at the time of company formation India is a proper business idea. What do you want to start and why do you want to start it and nothing else? You must have a proper business idea in place in this particular regard. Do you want to start a product based company or a service based one? You need to remember that you should make your business as unique as possible. You must identify a unique problem that your potential customers are facing and you must be the one providing the solution in this case.

Doing your research

This is important in the context of company valuation India as well. You may be thinking of putting resources such as money in your business. Before that you need to come up with real facts and figures that substantiate that your business idea is worth it. This is where proper research becomes so very important. One of the main reasons why most small businesses fail is because there is no market for what they are offering in terms of products and services. Try to find out a few things in this regard. What would be your target market?

Making a business plan

This is an important part of any and all business expansion into India. You may have the best ideas in the world but without a business plan they are nothing more than a wish. When you have a business plan things would become a lot more straightforward and efficient. It may sound boring and clichéd but it is as true as it can possibly get in this particular regard. The statement that business plan is your tool of implementation is fully worth it. This helps you put your vision on paper.

Making it legal

You need to make your business a legal one as well. This is the next step in this regard. Depending on the kind of business that you are doing you need to get it registered with the appropriate legal authority. In India there are various kinds of legal entities that you can set up. Apart from a normal company you could also start a private limited company or an LLP (limited liability partnership). In case you are looking to make your business scalable the best thing to do would be to form a private limited company. In India it is pretty easy to register a new company.

Finance and budgeting

These are also important pieces of the jigsaw. Since you are a small business you would have to understand and accept the fact that you would have limited funds in the beginning. You also need to make sure that you are spending the money as precisely and properly as is possible for you at a point in time. You need to make use of all the opportunities to save your money in this regard. For example, you can start your business from an apartment like well established brands such as Paytm and Flipkart did.

Related reading:

Startup Style – What legal format fits you best?

Essentials for accounting for startup companies

Spotlight: Urban Microfinance in India

Things to remember while launching a business in India