Business Ideas In Maharashtra
The rising number of start-ups that are being instituted and are flourishing in Maharashtra, is astounding and has even given the State the title of “future start-up capital India”. The steady rise is also encouraging as it reinstates the fact that creating jobs via start-ups is one of the best ways to beat the rate of unemployment in the country.
There are a number of business ideas that can be converted into a small scale business in Maharashtra, ranging from food related to daily essential service sectors to specialised and specific services.
Food Related Business Ideas
Maharashtra as a state has a diverse population, especially in the cities, where people from various cultures reside. And this diversity has opened up the State to a variety of cuisines. Therefore, food and food-related businesses is a profitable idea worth exploring. It could be a food stall, a kiosk, breakfast joint or a cafe to start with where food and juices can be served. Tiffin services and catering is also an idea that will find takers in the State which has a large population. Food trucks are also gaining popularity in Maharashtra as are bakeries and confectionery shops, where even online selling options can be explored.
Daily Essential Service Business Ideas
There are various daily essential services which can be pursued as business ideas in Maharashtra such as laundry services, courier services, dairy farm and milk supplying business, cleaning services, pest control services, gardening services, transportation services, gadget repair and servicing, etc.
Specific Service Business Ideas
Business ideas that are specific to a certain category or targeted audience can be successfully initiated in Maharashtra. These can include consultancy services, digital marketing and advertising services, grooming services, etc.
There are a number of small business ideas apart from these which can be explored in the State. Some of the profitable business ideas in Maharashtra include-
Real Estate Brokering
Hairdressers and Beauty Salons that are mobile
Garment and Tailoring Services
Technology Repair Services
It Support Services
These are just some of the business ideas which have proved to be successful and profitable in the State.
Essentials While Considering To Start A Business In Maharashtra
While looking for small business ideas in Maharashtra, it is important to consider certain factors that will affect the decision to conduct business within the State.
One of the vital things necessary to start a business is procuring funding. The ways to arrange funding includes loans which can be obtained from banks or private funding institutes or loans or funding from friends and family or self funding.
Once the procurement of funding is taken care of, the next process involves the actual starting of the business, in a physical form. For this process, apart from funding there are other factors that need to be considered. Some of these essential factors while looking to start a business, include-
- Nature of the business– It is vital to consider the nature of the business, whether it is a manufacturing business, a merchandising business or a service oriented business.
- Target customers of the business– In order to succeed at the start-up it is vital to make a study of the market and whether there is a need in the market for the said business idea.
- Location of the business-The location, the surroundings, the locality and the area are critical factors that need to be considered while setting up a new business.
- Business formation or entity of the business– The type of business structure that is a crucial factor to consider too as it affects the taxation compliance applicable to the business along with other legalities. The business can be either a partnership, sole proprietorship, limited liability partnerships, corporations etc, all of which are supported by the State.
- Business space– The place where the actual business will be carried out or conducted can be a shop or warehouse or any place appropriate to the needs of the business. This place can be leased or can even be purchased if the capital is available. Along with renting or purchasing space, renovations and improvements to the space also need to be considered, especially when listing the capital expenditure,
- Asset procurement– Every business needs assets for it to operate, such as furniture, computers, gadgets, stationery, etc as per the type of business.
- Operating costs– After the space and assets have been taken care of the business needs to make arrangements beforehand for costs related to the operation of the business, such as day to day costs, bills for essentials like water, electricity and wages etc.
- Appointing staff– The people working for the business need to be chosen with care as they will be a window into the working ethics of the business and must be skilled at their job too. Another option to get work done for the business is outsourcing the work wherever possible to reduce the work load.
- Marketing the business– while starting a business, even when everything is in place and planned, if the business is not marketed then it will fail to reach the targeted audience. Thus thinking of marketing techniques is equally vital while planning and starting the business.
- Accounting of the business– While starting the business, accounting might not be one of the factors on priority but it is important to take care of accounting of the business from day one and appoint some for financial analysis and accounting if need be.
Apart from these basic essential details to think about and consider while starting a business in Maharashtra, there are certain registrations and licences which need to be obtained while implementing the business ideas. Most of these registrations are mandatory and are required to conduct business easily and without any hurdles. The registrations required by a business depend on the nature of the business and the activities carried out by the business. Some of the common registrations and licences that are required by most business types include-
Registration And Incorporation Of The Business
This process consists of choosing an appropriate business structure for the start-up and registering the business under that business entity. The right type of business entity will support the business and help accelerate the growth of the business. Additionally, high tax rates too can be avoided along with prevention of personal liability in case of a loss by selecting the correct business entity. The registration for the business entity can be done by filling out an e-form from the Registrar’s office. The types of business entities include proprietorship, One Person Company, Partnership, Limited Liability Company, Private Limited Company and Public Limited Company. Thus deciding the business entity must be given due importance and the incorporation is necessary.
Shop And Establishment Act Licence
Most businesses, especially merchandising and retail business, operate out of a shop and for that they require a Shop Act Licence for operating the business. The Shop Act is designed to regulate payment of wages, hours of work, leave, holidays, terms of service and other work conditions of people employed in shops and commercial establishments. Shop Act is a mandatory registration and is necessary if the business premises are located in municipal limits. It is compulsory to display this document in a prominent place in the business premises.
The Shop Act licence can be obtained via an online application after registering to the first register with MAITRI (Maharashtra Industry, Trade And Investment Facilitation Cell) website. The steps involved in the registration process are easy to follow, once the business owners are aware of the shop act registration documents needed for the procedure and the same are kept handy.
In today’s Goods and Services Tax era, which was introduced in July 2017, registering the business for GST is a must. GST is an indirect tax that is levied on goods as well as services. All the existing States and Central indirect taxes are subsumed under the GST, including for Maharashtra. Under this system, a single product is taxed at the same rate in every corner of the country. Registration for GST can be carried out online. GST registration provides tax benefits to the business, along with establishing a uniform platform for taxation.
The other registrations and license needed by businesses include-
- Udyog Aadhaar
- Import Export Code (IEC), in case the business activity involves import or export
- Employees’ Provident Fund Organization
- Permanent Account Number (PAN) for income tax
- Professional Tax Registration
- Employees’ Insurance (ESIC)
The information thus shared helps with business ideas in Maharashtra, along with the essential details that need to be considered while starting a business in the State, including the legal compliances, registrations and licences that are applicable to the business operating in Maharashtra. Further detailed information about the registration processes can be obtained via deAsra checklists.