Setting up a franchise business is an attractive opportunity for entrepreneurs in Patna. This business model offers a tried-and-tested blueprint for success for many. If you’re planning to have your own franchise, or thinking about stepping into the world of franchising, one of your first tasks is to understand how to register a franchise business in India. The process of registering a franchise business in Patna is simple and straightforward. But it is essential that you understand and follow the correct steps of registration. Here, with this small article, we will guide you through the process in a very simple and easy-to-follow manner.
You Must Understand Franchise And Its Importance
Franchising is a business model where the franchisee (you) pays to use the franchisor’s brand, business model, and operating methods (the original business). Some of the best-known brands worldwide, such as McDonald’s and Subway, are franchise-based businesses. In India, the franchise sector is growing rapidly due to the country’s growing middle class, making this a great time to consider setting up your franchise in Patna also.
The importance of franchising in Patna can’t be overstated. By owning a franchise, you are part of a proven system that reduces business risks associated with startups. You benefit from brand recognition, more extensive network support, and operational know-how that would take years to build from scratch. Hence, registering your franchise business correctly is essential for your business journey.
Initial Steps Before Registration
Before registering your franchise business, conducting thorough research is vital. You must understand the market, identify the best locations for your outlets, and analyze your potential competitors.
Then comes the task of choosing the franchise that suits your business vision. You should evaluate potential franchisors based on their brand reputation, support services, franchisee feedback, and financial performance. The franchisor will also provide you with a Franchise Disclosure Document (FDD), which details every aspect of the franchise operation. Go through this document meticulously.
After selecting your franchisor, you will sign the Franchise Agreement. This contract outlines the terms and conditions of the franchise, such as your rights and responsibilities, the franchise fee, the term of the agreement, and how to renew it. It will help if you take legal advice before signing this contract to ensure you fully understand its implications.
Register Your Franchise Business In Patna
After signing the Franchise Agreement, the next step is to officially register your franchise business in Patna. No specific law governs franchises, but you must register under the Indian Companies Act 2013 or the Partnership Act 1932 or form a proprietorship depending on your business structure.
For a private limited company, you need to apply through the Ministry of Corporate Affairs (MCA) portal; further, you can take the assistance of a chartered accountant in Patna for the registration services. Or, if you plan to do it on your own, you must fill in the details of your company, including the proposed name, the registered office address, and the details of the directors. You must also provide the Memorandum of Association (MoA) and Articles of Association (AoA), which set out the company’s constitution and rules.
For a partnership, you should draw up a Partnership Deed outlining the terms of the partnership. Then, you must register this deed with the Registrar of Firms in your state.
Whichever business structure you choose, make sure you also obtain a PAN and Tax Deduction and Collection Account Number (TAN) for your business from the Income Tax Department.
Get Required Licenses And Registrations
Once your business is registered, you must obtain the necessary licenses and registrations. These vary depending on the nature of your business and the location in which you operate. Therefore, contacting a reputed chartered accountant in Patna will be an excellent step since they have all the related state law information in which you want to register your business and get the necessary licenses. For instance, setting up a food franchise requires an FSSAI (Food Safety and Standards Authority of India) license.
You must also register for GST on the GST portal. GST is a tax levied on the supply of services and goods in India. Your franchise will likely need to pay this tax, so make sure you’re registered.
Lastly, you should obtain a Shop and Establishment license from your state’s labour department. This license is mandatory for all business establishments and should be obtained within 30 days of starting your business.
Summing Up The Process Of Franchise Business Registration in Patna
Registering a franchise business in Patna may initially seem challenging, but with careful planning, expert assistance, and attention to detail, you can successfully set up your venture. The beauty of a franchise business is that you’re leveraging an established brand, reducing your business risk.
Successful registration of a franchise business in Patna involves a series of crucial steps, from understanding franchising and conducting initial research to registering your business and obtaining necessary licenses. Following these steps carefully will help you establish your franchise business successfully. Remember, every action taken prudently will lead you closer to your dream of owning a successful franchise.
