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How to Launch a Startup in India


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Updated on:
March 15, 2024
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Updated on :

March 15, 2024
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How to Launch a Startup in India

The fast growth of India's startup ecosystem has been fueled by a large population, rising digital adoption, and supportive government policies. While launching a startup in India is thrilling, navigating the process with strategy is essential. This article highlights steps to guide you while launching a startup in India, including details on partnering with an Employer of Record (EOR) to facilitate the process of effectively launching a venture in India.

Discover the secrets to efficient hiring in India here.

Steps to Launching a Startup in India

Conduct an in-depth market research

The first thing to do before expanding or launching a startup in India is to carry out market research to validate your business idea. The process of carrying out market research involves discovering your target audience and the different customer segments. It is crucial to understand common trends and the competitive landscape. By assessing the opportunities and pain points in the market, you can refine your product offerings and create a unique solution for your product.

Draft a comprehensive business plan

Creating a comprehensive business plan defines the direction in handling the Startup. The business plan should include a well-detailed market strategy, goals and objectives, growth plans and revenue projections. Establishing a measurable key performance indicator metric is essential.

Comply with India’s legal requirements

While navigating India’s legal requirements can be challenging, it is a crucial step in launching your startup. To ensure compliance with India’s legal requirements, here are a few steps to follow;

  • Register the organization with the Registrar of Companies and pay the required fees.
  • Acquire relevant licenses and work permits
  • Obtain your GST number and comply with all tax requirements
  • Enforce copyright protection on your brand and products

One of the easiest ways to navigate the legal processes and requirements is by partnering with an Employer of Record (EOR), which enables you to hire and build a team in India by ensuring full compliance with Indian employment laws.

Build a team for your startup

The team you create or assemble can make or mar the growth of your organization. Because it is crucial to get the right people in your workforce, it is essential to define the critical roles required for success. One of the ways to define critical positions is by stating the skill requirements for each available position. 

By developing an efficient recruitment strategy, you can hire and onboard highly skilled professionals and decide which positions are open for freelancers or full-time employees. In addition, it is essential to research the freelance hourly rate in India and the kind of benefit packages full-time employees are entitled to in India.

Establish an efficient workflow

A well-defined workflow is essential for your startup’s success. Implementing a standard operational procedure makes it easier to define what roles will be available for independent contractors or full-time employees. Also, procuring the necessary tools and equipment to enhance the quality of work output is essential for the startup’s growth.

Create a comprehensive marketing and sales plan

An effective marketing and sales strategy is essential to reach your target market and drive sales. Creating a marketing strategy by infusing content marketing, digital marketing, and PR to drive growth is essential. A sales strategy will ensure your product reaches your target audience. Also, establishing a viable digital presence is crucial to engage your target audience and promoting your brand.

Partner with an Employer of Record

The most efficient way to launch your startup in India is by partnering with an Employer of Record (EOR) platform. An EOR offers the following benefits for organizations planning to expand into India;

  • Streamlined hiring and onboarding process while ensuring compliance with local labor laws
  • Efficient payroll management and administration - An EOR can enable seamless payment of freelance hourly rates in India and accurate payment of employees' salaries.
  • Compliance with local employment laws, including the labor codes in India.

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Launch your Startup in India with Skuad

Launching a startup is an exciting and rewarding endeavor. However, it can be challenging as it requires expertise and careful planning. By partnering with a global employment and payroll platform like Skuad, you can hire and build your team in India without setting up subsidiaries or going through the challenging employment process in India. 

In addition, we handle your entire employment lifecycle so that you can scale your business operations compliantly, with reduced efforts and a top-notch HR administration.

To know more about Skuad, book a demo today.


How can I start a business in India from the USA?

You can start a business in India from the USA by conducting conventional business activities such as market research, creating a business plan, etc. It is also essential to know about India's tax and employment laws.

Can foreigners start a startup in India?

Yes, foreigners can start a startup in India, provided they comply with the labor laws.

How much does it cost to open a startup company in India?

There is no actual cost to open a startup in India as it is subject to various factors such as the location, business type, and other expenses.

About the author

Sandeep Patel is a Content Marketing Manager and Strategist. Over the last five years, he has created and managed content for global brands and fintech startups. He is passionate about remote work and using tech for a better work-life balance.

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