How to Start Subscription Business in India?

Overview 

The subscription business is the payment which for subscribing evergreen services on an ongoing business. This business is not a one-time purchase for an individual. Instead, the payment has to be made at the recurring period so that benefits won’t stop corresponding to the psychological relief. According to the latest data released by Statista , video subscriptions dominated the digital content market in India in 2023, with revenues worth 73 billion Indian rupees. This was expected to grow to about 103 billion rupees by 2026. Therefore, this is the best, seamless option to start a subscription business in India at a low investment. This business requires high intelligence for adaptability while providing subscription services to retain and wider the customers base. 

What is Subscription Business?

Subscription refers to the payment made by the customers in order to receive the products and services on an ongoing basis. This recurring price has to be paid to the top service provider at regular intervals to access a product or service. The customer will continue to pay the fees on a regular basis so that they can enjoy non-stop service which is paid. 

Top 8 Subscription Business Brands in India

Here’s the top 8 subscription business brands in India:

• Netflix Subscription - Streaming
• Birchbox - Beauty
• Stitch Fix - Fashion
• FabFitFun - Lifestyle
• BarkBox - Pets
• Quickly - Automobile
• Amazon Subscribe and Save - Convenience
• Xbox Game Pass - Gaming

These subscription business brands provide the blueprint to trace a foundational plan for initiating the business. These top brands allow customers to use a new range of products/services that do not even exist in the market. On analyzing the market trends, one can establish long term customer relations with their subscription business at a very minimal cost. 

Registration Required for Subscription Business in India

Here’s the registration required for subscription business in India: 

• Requirement of GST Registration: In case your threshold limit exceeds a certain turnover amount in the subscription business, a person is taxable to pay taxes by registering under GST registration. 
  
  
• Requirement of Business Registration: For any kind of business in India, you want to establish whether it is online or vendor business, you need to require business registration. There are 5 types of business registration which includes: OPC registration, sole proprietorship, LLP registration, partnership registration and private limited company registration.
  
  
• Udyam Registration: As you are beginning your business from home, your subscription business would fall under the category of Micro, Small, and Medium Enterprises. For getting government incentives without heavy investing on your business for inventory stocks, etc. you are required to get Udyam Registration. 
  
  
• Trademark Registration Online: The trademark registration protects the rights and identity of your brand and logos. 
  
  
• Shop and Establishment Act Registration: Even for online business, the registration for Shop and Establishment Act Registration is also essential.
  
  
• Startup Registration for new Startup Business: Setting up a subscription business requires new registration called startup registration. This registration allows new startups and protects the new startups from the dynamic business environment. 

For getting multiple benefits from legal and financial regulations, you are required to get assistance from experienced CA and CS experts for easing your application. We at Bizfoc team will dedicatedly serve your needs to make your business compliant to legal and financial regulations.

How to Start a Subscription Business in India?

Here’s the 5 step by step simple procedures to start the subscription business in India:

Step 1: Decide Your Niche:

Deciding your niche is a first step to who you’re going to satisfy your service and to whom. On getting the idea for what you’re going to deliver as a subscription to the customer, you’re cleared with the vision to start something new. For example, if you want to create a game base model, you can focus on gaming features that would easily attract the customers. 

Step 2: Get Choose Your Business Model:

Preparing your business model is the crucial way to stand out representing Unique Value Proposition (USP) in the market. Business model specifies the type of niche that can satisfy the customers expectations. For example, if you’re keen on providing teaching resources to the students you can charge a subscription from the customer. In this way teaching resources is the business model you will far provide. 

Step 3: Search your Customers for who you’re providing:

The next step after building a business model, you should know what kind of customers you want to acquire for. On building the business model, you should try all different ways to get the customers on board. After getting certain strategies, you will try to get the different approaches to attract your customers 

Step 4: Strategize to Retain Existing Customers:

For the new subscription model, customers try to get the trial experience by taking a subscription from the service provider.The more you will evolve and adapt your value of service, the more you'll retain your existing customers. This is one of the basic formulas for retaining and expanding the new customer base.

Step 5: Adapt to Lead Your Customer Business: 

If you’re much expert in adapting the service according to the customers demand, adapt it with no time because the best experience for service renders a wider customer base. 

Challenges 

Here’s few challenges one can face while establishing subscription business:

• Collecting payments on a regular basis can fade out the interest among customers 
• Have taken too many steps for psychological relief 
• Not providing appropriate method or limited method for payment of subscription

Conclusion 

Subscription business is an interesting business industry which provides satisfaction to thousands of human psychological demands under one subscription service. This business requires registration like GST registration, MSME registration, trademark registration and business registration. However, there are also many challenges but you can cope up with those challenges by regularly adapting value delivery to the audience. 

Frequently Asked Questions 

1) Is a physical product necessary for a subscription business?

No, there is no requirement of any physical product for a subscription business in India.

2) Is it possible to charge customers in foreign currencies?

Yes, it is possible to charge customers in foreign currencies through many payment gateways. 

3) Do I need to provide customer support for subscription business?

Yes, you need to provide customer support for your subscription business

4) Is it important to have a website for my subscription business?

Yes, it is important to have a website for your subscription business as it is easy to get to know your subscription business in India.