Nowadays, opening small businesses with low investment is becoming a need for the less-earning families and also for the unemployed youths of India. Profitable Small Business ideas with low investments can help make more money faster. Starting a small business is becoming a dream of the person to make more money easily. There are many unemployed people, youngsters, housewives, and men who are jobless and are waiting to start their own companies but are stuck because investments are needed to start their businesses.
More profitable ideas for small business in India are starting a cupcake, homemade papad, pickle, homemade food items, homemade products, clothing/accessories business, pet care, childcare, online tutoring services and digital marketing. Here is some information given to start-up Small Business in low investments. You can start you own small business with low investment of Rs 50,000.
Small business ideas with low investment: Benefits of starting a small business in India
In India, Small Business start-ups are very beneficial to turn the dream into reality. Your own business can give you the chance to achieve financial freedom and have control over the earnings you do. Small business makes you Financially Independent. Starting your own business can turn your passion and interest into earning. These types of businesses are easy to start from your doorstep.
Small business is always your own business, where you become the boss make your own rules and decisions, and can control your business in your way. Such a business does not stop you from being creative and innovative with new ideas but allows you to present something extraordinary. You can balance your personal and professional life easily. Small business helps you to focus on the niche market and offer products or services to the customer.
Small business ideas with low investment: How small businesses are started?
Starting a Small business with perfect planning, financial decisions, and completing legal activities can take business to the top. Companies involved in importing or exporting goods or services must obtain the Import Export Code (IEC) from the Directorate General of Foreign Trade (DGTF). To receive an Import Export Code, the company must have a permanent account number (PAN) and a bank account.
Follow the steps to start your small business
1. Conduct market research: Market research will help you know about the business you are about to start on your own, and how will it be successful in the future. Find a proper place for the business and know about the types of food consumers and businesses going on in the area.
2. Write down your business: Making a business plan is an important foundation of your business. It structures your business in a better way.
3. Fund your business: Through your business plan you will get to know how much to invest, from where to invest and how to invest. If you don’t have enough money and you still want to invest there are other ways you can go through borrow the capital.
4. Pick your business location: Picking your business location is the most important part of business. Whether you are setting up the business or launching a new online store, the choice you make can make a difference in your taxes, legal requirements and revenue.
5. Choose a business structure: The legal structure you choose will impact your business registration requirements, how much you will pay in taxes, and your liability.
6. Choose a business name: To pick the perfect name, you will need to pick such name that will reflect on your brand and capture your spirit. And also make sure that no one has the same identity as the business.
7. Registration of your business: Once you are confirmed with choosing your business name, you need to make your business legal and protect your brand. If the business is under a different name, then you’ll need to register with the federal government, and also with your state government.
8. Get Federal and State Tax IDs: You’ll need to use your Employer Identification Number (EIN) for important steps to start and grow your business, like opening a bank account and paying taxes. This ID will help you to protect your business. Tax ID is only required in some of the states.
9. Apply for licenses and permits: The license and permit of your business is part of the industry, state, and location. These are important for the smooth flow of the business.
10. Open a Business Bank Account: Opening a business bank account can help you in handling legal, tax, and day-to-day issues. It is easy to set one up if you have the right registration and paperwork done.
A small business is a privately owned company by the owner. In small businesses corporations, partnerships, or sole proprietorships have less number of employees and less annual revenue.
Small business ideas with low investment:Here are some ideas that can help them earn more profit in low investments
1. Online Tutoring or Coaching: With the help of your educational background, you can offer your services of tutoring in subjects like maths, English, science, arts, and many other subjects. This business allows you to set your flexible schedule and can be conducted either in-person or online as you prefer for yourself. To start the very small-scale coaching classes which are in the residential quarters, you do not need a license or registration. If you are about to start coaching classes, you will require a better study area, and hiring staff to teach students and the material provided to the students can affect the quality of teaching. Advertising and marketing is required to increase your business. For large-scale coaching classes, you will need a trade license and also need to pay taxes. The profit margin of more than nine lakhs will need compulsory registration and tax payment.
Trade licenses are obtained from the local municipal corporation before starting the business. The application for the trade license must be filled three months before the beginning of the business. The required documents are the rent bill, lease deed, consent letter from the owner of the building, declaration, etc. to register your business legally. Investment in tutoring might come under Rs 50,000 which type of tutor do you want to open.
2. Homemade Food Delivery: Demand for Homemade food delivery is high nowadays. In the modern period, people are more preference to online foods and homemade healthy food. In this business, you need to be focused on one specific item of food. To attract customers you need to be presentable, deliver without mess, quality products, and services. To run the Homemade Food Delivery you’ll need a FASSI license or registration, a trade license from the local municipal, and also a permit if it is a large-scale business. Homemade Food Delivery involves Indian Thalis, tiffin services, and specialized food items like vegan and gluten-free. Investment in Homemade Food Delivery might come under Rs50, 000
3. Handicrafts & Artisanal Products: Handicrafts & Artisanal Products are profitable if you focus on identifying the niche product you will be able to work on, do market research to find your target audience and the demands, and focus on creating a unique product. You need to create a business plan, costing of overall business, and potential revenue. You can also find online platforms to sell your product on a large scale; and can attract customers with better marketing strategy and advertisement of the product. If you are making handicrafts then you don’t have to spend any money at all. Otherwise, in this, you need to invest less than Rs50,000. You need to open a separate business bank account to operate it easily. These handicrafts & Artisanal Products can be sold and also can be exported from India.
Documents required for handicraft export from India.
- Company Incorporation certificate
- IEC Code
- Export Promotion Council for Handicrafts registration certificate
- GST registration for tax purposes
- MSME registration to avail of benefits provided by the government
- Trademark registration to protect your brand identity
- Bank account statements and other financial documents
- ID and address proof of the business owners.
- Proof of possession of the business premises.
4. Freelance Services: Freelance service is when a person works for themselves, rather than the company. This type of business is on contracts. Investment in Freelance depends on what kind of freelancer you want to become and you are more comfortable in doing it. Freelance can be like a musician, counselor, graphic designer, data entry, digital marketing, SEO, Web development, and Social Media Management.
5. Photography: if you are interest and are well skilled in clicking pictures, you can surely start to earn your profit. By investment of Rs50, 000 you can start with a basic photography like wedding photography, portrait sessions, event photography, landscape, and travel photography. For photography, you will need DSLR camera or mirror cameras, which can be purchased second-hand to stay within budget.
6. Childcare Business: To start childcare in India is now most needed for working parents to look after their children. The main factors you will need are the location, facility size, amenities, and staff salaries. The Childcare business starts with an investment of around Rs2 lakh, as you need to work on rent, interior set-up, licensing fees, and equipment. Opening Childcare is not possible without safety licenses and the registration of the document. Once need to registrant under the act of Company registration under the Companies Act and Licensing under the Shops and Establishment Act.
7. Yoga Classes: Opening yoga classes is a benefit for the neighbors or area people and profitable for you. To open yoga classes in your home no registration is needed only permission from your society office. But if you are starting in other specific locations then you will need a valid certificate for training. Investment to start yoga studio Rs 7 lakh for small yoga classes
8. YouTube channel: To start with your own YouTube channel you will need to invest in things like a camera, camera equipment, and editing software. Investment in a YouTube channel is zero if you have everything need for your channel. YouTube channels are paid if the content is creative and you continue to post on your channel. You have to choose a specific topic, be creative, and try to update your work. There is no need for a license to open your YouTube channel, only have to avoid implicating the copyright contents. The topic should be interesting to the audience. Topics of content: Technology and Gadgets; Personal Finance; Health and Fitness; Beauty, Hair, and Skin care; Gaming Channels; Educational and Online Learning; Travel and Lifestyle; DIY and Crafts; Cooking and recipes; Automotive. After creating a channel and posting it, you will need to keep a watch on your subscribers and views, so that you better work on it for the next time. The quality of presentation, video, and content is a must for getting the audience’s attention toward your video.
9. Salon: To open a Salon you need to choose the proper location so that you may be profitable, you can also choose your home to turn into a salon. To attract the audience you only need to be professional, good service to the customer, attractive interior set-up, and invest in the best products is important. You have to identify your customers and decide the price and service your salon can offer. To run a salon you will need to license from the local government. Based on the location of the business, you will need to make a trade license from the Municipal Corporation, GST number, fire safety license, and professional tax license.
10. Blogger: To start blogging to have to first pick your blog name, choose your blog niche by identifying your blog niche, choose the blog platforms you want to post on, and write your first blog to post. Later on, you have to optimize for SEO. You can start your blogging with zero rupees in your pocket with the help of WordPress.com’s free plan. Legal permission to do blogging is required depending on which type of blog you are publishing. Bloggers need to do registration in with the government authorities, which is the Registrar of Companies. And also need to register your domain name with a domain register to secure your online presence. Along with this, you will also have to register in Copyright Permissions, Trademark Registration, Privacy Policy, Terms and Conditions, and Advertising Permissions.
Read also: Union Cabinet Clears 2% DA Hike for the Central Government Employees.
Small business ideas with low investment: What licenses are required for the small business? How to get a license and permit for a small business?
Food Safety and Standard Authority of India license
Food Safety and Standard Authority of India (FSSAI) is an Indian government agency responsible for the sanitization and standardization of all food products supplied throughout the country. You must obtain a license from the FSSAI if you plan to start a food business, whether it is selling packaged food, operating a restaurant, using a cloud kitchen, or any other food business model.
Applying for a Trade License
The candidates can submit the trade license application through online or offline channels. The process of application involves applying to the municipal corporation of the city which governs the jurisdiction where the business is located. The application should be submitted at least a month before starting a business. While in another country the submission should be within 30 days. The timeframe alignment is based on the outlined in the State Municipal Corporation Act application.
The fees for the trade license depend on which state the business is location, as per the location municipal corporation the fees are applicable. Processing Time for Trade License, in metropolitan cities, the trade license will be issued within 7 days to 15 days following the payment of fees and in rural and smaller cities, the issuance of the trade license may take longer, extending up to 30 days after the fee payment.
Online Procedure for Trade License Application
Step 1: Go to the official municipal corporation website of the respective city.
Step 2: Navigate to the ‘Citizen Online Services’ section and choose the ‘Trade License’ option.
Step 3: Select ‘Apply for Trade License.’
Step 4: Complete the registration form with the necessary details.
Step 5: Upload the documents that are required and submit the form.
Step 6: The authorities will review the application and documents for verification.
Step 7: Upon successful verification, a unique application number or ID will be generated.
Step 8: Visit the municipal corporation website to make the necessary fee payment.
Step 9: Receive the issued trade license number.
Offline Application Process for Trade License
Step 1: Visit the municipal corporation office in the specific area where the business is situated.
Step 2: Acquire the trade license application form.
Step 3: Complete all the requisite details on the form.
Step 4: Submit the application form to municipal corporation officials along with the necessary documents.
Step 5: The officials will review the application, and upon approval, a unique application number or ID will be assigned.
Step 6: Visit the municipal corporation office to make the required fee payment.
Step 7: Obtain the issued trade license.
Required Documents for Trade License Application
- Business address proof
- Applicant’s ID proof
- Aadhaar card
- PAN card of the individual for proprietorship, PAN of partners for a firm, or PAN of the company/LLP
- Memorandum of Association (MOA), Articles of Association (AOA), and Certificate of Incorporation for companies
- Certificate of registration for partnership firms and LLPs
- Latest municipal property tax receipt if the premises are owned; lease document or owner’s consent letter (NOC) if rented
- NOC from the pollution control board and fire department, if applicable
- NOC from nearby property owners (neighbors)
- Katha certificate
- Certified layout plan of the office
Gumastha registration
If you plan to start a new business in Maharashtra, you will need a Gumastha license. The required documents include the following:
- Application letter to the Municipality of Greater Mumbai
- Authority letter for business
- Company’s Certificate of Incorporation
- Director’s ID and address proof
- Government-prescribed fees for a partnership
- Memorandum and Article of Association
- PAN card
- Residence proof or an owner’s no-objection letter
Small business ideas with low investment: Schemes to start a small business
Here are the schemes to get some help to start your small business.