Small business is an essential support system of the Indian economy. Over 80 million people are employed by over 36 million small enterprises in India, according to the MSME report. Small enterprises make up over 8% of the GDP, 45% of the nation's manufacturing output, and 40% of India's exports. Small businesses make an essential contribution to the economy, and the Indian government supports them with various subsidy schemes and initiatives.

Due to their flexibility and low overhead, starting a small business at home has grown in popularity in recent years. A small business can be run and controlled from the owner's house. In such cases, the business's home and office addresses are the same. Instead of an external headquarters, the owner's residence or other location serves as the company's headquarters.

Who Can Establish a Small Business at Home?

Anyone may start a business from home and become an entrepreneur. Because of the internet, anyone may now launch a small business at home and use e-commerce platforms or their own website to promote their goods or offer services.

Additionally, people can develop a home-based business using their skills, such as dance, painting, or photography. As a result, those who want to launch a business can do so from home and use their efforts to increase their income.

Procedures to Start a Small Business at Home?
 

Develop a business plan
 

Every entrepreneur must make a plan for their business before starting any type of business. They must create a budget for the whole business strategy after choosing the business. The business strategy, start-up costs, taxes, and everyday expenses must all be included in the business plan. It serves as a guide for all businesses.

Think of a personal brand 
 

Check out a handful of your favourite brands. Most of them have a catchy name, appealing graphics, and a voice or tone that clearly tells about your business. Therefore, create a brand image for your business.

Until you purchase 10,000 business cards, register a domain, and pay for expert web design, be sure you are enjoying your branding. You must cherish every aspect of who you are, including your name, color, and vision. 

Make financial planning 
 

You must make a sound financial plan before you start building your firm. Your overall business plan should include the preparation of a budget as a crucial element. If you don't make the essential preparations, you might subject yourself to needless stress as a business owner. Budgets need to account for startup costs, ongoing costs, and taxes. 

Depending on the kind of business you plan to launch, you will need a small business loan to get started. Small business entrepreneurs can avail a number of funding options, including term loans, SBA loans, credit lines, and trade finance.

Develop working environment
 

Small business company owners must designate a particular section of their houses for work-related activities. They must establish working hours and devote those hours to the company. 

To avoid personal activities interfering with business operations, you must put strong restrictions in writing. Many people struggle to run a successful home-based business because they let their personal life get in the way of their daily operations.

Decide the expected revenue
 

You should know the potential profitability your small business can fetch you before establishing it. Even if you have a natural talent and the capacity to express it, your business will fail if no one is willing to pay for your goods or services. So you need to figure out how many customers will be willing to pay for your product or service according to your business idea. 

Choose brand name 
 

A good business name is crucial because it forms a part of your identity and serves as an effective marketing tool for your company's brand. You can use your name in your company, but it should make it clear what kind of goods or services you sell. 

If you determine to use a fictitious name, you must make sure it is not already in use by registering it as a d.b.a. (doing business as) with your county and state and making it widely- known. To conduct business locally, nationally, or internationally, you should consider registering a trademark to protect your company name or logo.

Develop website
 

Even if you operate your business from home, it is still preferable to have a website. A website helps to increase audience reach and consumer acquisition. By developing the site,  you can highlight your contact information and the products or services you offer on the company website. 

Promote your business
 

Business owners can advertise their companies by setting up a presence on social media sites like Facebook, Instagram, or Youtube. They can expand their consumer base by setting up an online store or selling their goods through an e-commerce website like Amazon, Flipkart, etc.

Register your business
 

In India, a number of licences and registrations are necessary to launch a small business at home. Despite the fact that the business is conducted from home, the proprietor is still required to get a number of licences in order to operate the business. 

A permanent account number (PAN) and a taxpayer identification number (TIN), which are both required for business owners, are also helpful when filing taxes with the government.

Necessary Registration and Licences Required for Small Businesses
 

Company Registration
 

Getting company registration is the first step in starting a small business. An established legal entity, such as a sole proprietorship, partnership business, limited liability partnership (LLP), one person company (OPC), or limited liability company, should be used to establish a home-based business. 

By filing an application to the Registrar of Companies, the business owners can register their enterprise as an LLP, OPC, or private limited company. They can also start a business as a lone proprietor.

No Objection Certificate 
 

Since the owner's home is the official business address, the home-based business must get a Non-Objection Certificate (NOC) from the neighborhood's local authority. The municipal corporation or municipal council maybe two local authorities.

MSME Registration
 

Although MSME registration is not required, it benefits small firms operating from home. The government offers small enterprises with an MSME registration a number of incentives, including tax breaks, simple access to financing, low-interest loan terms, and programmes for technological advancement.
 

Trademark Registration
 

Trademark registration is required to protect the company’s trademark. The unique name or logo serves as the company’s trademark helping people recognise and remember it. Gaining potential customers and developing goodwill for the company are some advantages.  Additionally, it guarantees that no one else will use the company logo and offers protection in such situations.  

Other Licences 
 

Depending on the type of business, the proprietors are also required to obtain other particular licences. A manufacturing company needs a trade licence, a food company needs an FSSAI licence, etc. Businesses operating on e-commerce platforms must register for GST.

Documents Required for Business Registration 
 

Check the list of documents below required to apply for registration of a small business in India. 

• No issue certificate from Municipal Corporation 
• Clearance certificate from State Pollution Control Board
• Clearance certificate from Electricity Board
• Copy of partnership deed if you are in  partnership 
• Aadhar Card 
• PAN Card
• Bank Account
• Electricity bill or any utility bill 

Conclusion 
 

The procedure could take some time, but it can be completed quickly if all the procedures are diligently followed, and the required duties and paperwork are submitted. You can learn more about the legal prerequisites for starting a small business at home from our legal team of Online Legal India. Additionally, we can assist you in acquiring all required licences and permits.