What should a startup business plan state?
A startup business plan states what the business does, who pays for it, what it costs to deliver, and how much capital it needs before that payment covers the cost. It is the founder’s working note. It is not a form on the MCA portal.
What does the plan state?
| Part | What it records |
|---|---|
| Activity | The product or service, and the customer who pays |
| Place | Where the work is done, including a home, if that is the place |
| Money | Price, regular costs, and the capital needed to start |
| People | Who does the work, and whether they are founders or employees |
A note of competitors belongs in the same plan only so the founder can say what the customer gets here that the customer does not get elsewhere. The plan does not have to use a fixed template.
Which legal form is a separate choice?
The plan names the legal form, and the form is then registered under its own Act. A proprietorship is the owner. A partnership is a firm. An LLP and a private company are registered entities with their own filings. There is no Indian form called a limited liability company in the United States sense. The choice changes tax and the filings. It is not settled by writing the plan.
What is the plan not?
It is not a goods-and-services-tax registration, not a trademark application, and not recognition by DPIIT. Who can be recognised as a startup is on the eligibility page. A section 8 company does file a projection with its licence application. That projection is part of the licence, not this plan.
Frequently asked questions
Four questions cover the Registrar, GST, who files with the Registrar, and a trademark.
Does the Registrar require the plan?
No. A private company is incorporated without filing a business plan. A section 8 licence application does include a projection, and that is a different filing.
Is GST registration part of the plan?
The plan can note whether the business will cross the GST threshold. Writing the plan does not register the business for GST.
Does every startup file with the Registrar of Companies?
No. A company does. A proprietorship, a partnership firm, and an LLP do not file a company’s annual forms.
Is a trademark required before the business starts?
No. A trademark protects a brand and is applied for when the owner wants that protection. It is not a condition of writing the plan.
Sources
A business plan is the founder’s own note of the activity and the money. Incorporation of a company is a separate filing. Recognition as a startup is a further application.