Recently I received a report on the vision of Tamilnadu Government for how the business climate should be in year 2025 in the state. The report was a joint work by CII (Confederation of Indian Industries) and Tamilnadu Government (TN Gov).
I saw one interesting statistics that stood out among the report’s many pages. It was the number of days it takes to start a business in Tamilnadu (to a large extend it is same across India) – it is currently a whooping "41" days. I was not surprised, since I run my own business for last 10 years and have been through these hurdles of bureaucracy many times.
Most recently I had to do this (starting a business) once more, this time for my family business and it took me nearly 5 to 6 weeks. At this time we still we have VAT registration pending. To be fair, few days out of this was due to my end delays as well.
- We started with registering the new "Private Limited" (Limited Liability Company) with Registrar of Companies (RoC). For this the first step is to get name clearance (name of the company shouldn’t be conflicting with the said/unsaid guidelines or with other existing businesses). This took some time.
- Then comes the actual registration which involved multiple iterations of submission of our MoA and AoA (Memorandum of Articles and Article of Association). Each time we had to take a print, sign the paper, scan it, then digitally sign it and then upload it as a PDF file to the site. Once approved, you need to follow this by a hard-copy submission(sometimes they may ask for the hard-copy for each iteration as well) of the documents. Once this is done.
- First board meeting and resolutions to be passed
- Followed by getting an Income Tax PAN Number
- Then comes opening of a Bank Account
- Then comes applying for Service Tax Number or TIN (Tamilnadu VAT Number) and CST (Central Sales Tax). The choice between Service Tax and Sales Tax registration is depending on the nature of your business.
After all this only you can start your functioning. There will be more steps if you are involved in manufacturing, which depending on the industry has various other registration formalities. Compare all this is the time it took to open a business in USA – we opened our 100% subsidiary sitting from India in less than few days through the help of a CPA locally in India – everything happened through online. I remember reading that New Zealand, Canada and Australia with USA tops for the shortest days required to open a business. For information on doing businesses around the world, see this world bank funded site.
With the above experience I should say it is definitely commendable of Tamilnadu Government to even dream a "2" day timescale for this by 2025.
Sir,
Iam a home maker i did BBA .sir i want an to start a business ,will u pls give me an idea what to do.
your’s truly
N.Ushan
Sir,
I am a engineer.i did complete BE with MBA.
Now i start a business in salem or coimbatore area
will you please give me an idea for which business suitable for the above mentioned areas and also my carrier.
Regards,
A.Natarajan,
+91-9787834878.
sir,
i have finished MBA. now i planning to start a new business. please give some ideas to start a business in tamil nadu.
Dear Philomi & Natarajan,
Happy to note you are reading my blog. Thanks.
The idea for a new business basically has to come from you. Think of areas where you have interest or expertise. In my experience I have seen that some areas you won’t be knowing much, may be scared but once you start working or exposed you will start liking it. Keep an open mind. There are tons of materials on the Internet now for new budding entrepreneurs, check them out.
I will suggest some reading materials, Cybermedia’s DARE Magazine (www.dare.co.in) and a book by Mr.Subroto Bagchi (Co-Founder of MindTree) "The high performance entrepreneur". Mr.Bagchi goes into detail on every stage of a business from Idea, Founding and the book is very much written with an Indian context – this is not the typical American style management book you will find in all book store shelves (though I love some of the American Management books written by excellent authors).
sir,
i have finished M.A., now i’m planning to start a new business through bank loan. pl. give me ideas manufacturing type business (not service type like school and others) in and around vellore, the city just 140 km away from chennai capital of tamil nadu
Dear Soundra Rajan, Good Luck with your efforts. Think of possibilities in Manufacturing for Automobile or Construction industries. Both seem to be doing well in recent years inspite of temporary setbacks due to recession. Being closer to Chennai Auto-Ancilliary is a time tested avenue. Do good home work on the demand and read to familiriaze yourself with the dynamics. Refer sites like http://www.cii.in for industry reports, etc.
sir,
Im studing in MBA 1st year…my future plan to start a new business….give me some ideas to start new busines..
Dear Sir,
This is Madhu, i am interested to do the business, my friends are also with me, we are interested to do some thing to create an new Opportunity.We are completed our BE, now we are in our native place(Madurai) & we would like to start our business in our native place, could you give some ideas to start business.
With Regards
Madhusuthanan.R
9843649291
i am completed my MBA, 2009 pass out i want to start a business in my place my ideas are travels,hotel,minibus,petrol bunks,,,,,,, i know this business is very risk and high investment.. my mind is there…. wt can i do all persons disc rage me including my home also…. i will decide after your answer you got lot of experience in business field,so,,, i am waiting,,,,,,,,,,,,
Dear sir,
I am sureshkumar from erode i complete my MCA .i am very interesting to do business.in past year i am doing transport business but not satisfied in that so i need to start an new business but i wont get idea to make an new business .so please give some idea to start new bussiness
With Regards
K.N.SURESH KUMAR
Dear sir,
I am sureshkumar from erode i complete my MCA .i am very interesting to do business.in past year i am doing transport business but not satisfied in that so i need to start an new business but i wont get idea to make an new business .so please give some idea to start new bussiness
With Regards
K.N.SURESH KUMAR
Hi Venkat!
Hope you are fine.
I read this informatic page and it was nice information.
Moreover i would like introduce me to you. I am Sampath, from Salem. I did BE (EEE).
I am interested to start a bussiness. I dont have good ideas about what kind of bussiness
can be started. The investment should be less. Can you suggest me some bussiness ideas?
Thanks a lot.
Hava a nice time
Dear Sir.
Iam Balaji finished MCA. now i want to start business,now i plan to start Small type of Womens Saree and Fancy dresss Showroom. plz kindly help what i have to do.i want any type of business which make revenue.how to get the loan from banking sector. contact no:9789425738
Dear Mr Venkatarangan
I am thinking to start a new venture and heard of some special benefits from TN govt for starting in TN.
Whether Hosur also is a major station where all business related works like Registration, Applying for CST etc could be done.
Are you a CA or a tax consultant?
Regards
Gaurav
Hi Venkat!
I read this informatic page and it was nice information.
Moreover i would like introduce me to you. I am Sampath, from Salem. I did Dip (EEE).
I am interested to start a bussiness. I dont have good ideas about what kind of bussiness
can be started. The investment should be less. Can you suggest me some bussiness ideas?
Thanks a lot.
Hava a nice time
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Dear Sir,
Its glad to get Suggestions from you sir.Now i am doing HR Consultancy with my friends as Partnership.we are having 3 offices in covai,erode and karur.But my long term business aim is Real Estate and Finance.I want to do this little bit hitech.I am thinking to do the real Estate business as like consultancy (like Briks.com,99acres.com)in the local markets.I required your valuable suggestion.
Regards
Senthil.R
i want to do business where i can start with low investment
can u help me
Thanks
Ravi
Sir am working in Abudhabi, i have interest in start a business in India, i will invest maximum 2 lacs, but i don’t know what kind of business, Please give me a idea sir, Thanking you
Hi this is ram. I looking for new business. I want to do new business. I am from Nagai dt. I have no ideas. Kindly give me suggestions to start business in and around Nagai district.
Dear Sir,
I am working software engineer..But I always interst do business . Now my friends and myself we are plaining to do plastic materials prduction like covers and plastic items product manufacturing company..
Can you please suggest me is’t ok? and give me some tips for business..
Thanks & Regards,
Prakash
Contact:9768344562
Mumbai
Hello sir my name is kishore,i completed my electronics&Communication engineering i am into my family business in coimbatore i am planing to start a new type of business in new trend can you please give me some new suggestion
Reg
kishore
Dear Sir,
This is sathish from tirupur…now am working in garment field….i want start new business in this area…but i don’t know which business suite for this area…i want start different type of business..please give us yr suggestion..
dear sir
My name is Arul.j,iam working in private mnc company i am planing to start a new type of business in new trend can you please give me some new suggestion & my native place thiruvarur (i want start in my own city )
thanks & regards
arul.j
i’m Mahesh from Tamilnadu .i have interest in start a business in Tamilnadu, i will invest 50,000 to 1,50,000lacs, but i don’t know what kind of business to start, So Please give me a idea sir, Thanking you
Hi,
I found a facebook page to be useful for many of your questions.
http://www.facebook.com/businessideas404