How to start Data Entry Business in India


These businesses are necessary because most businesses have a need for data entry, information tracking, organization, and analysis. Popular websites offer jobs that can be bid on by data entry businesses, which then enter data for any company that needs it.

Let us have a look on the step by step process to start your own data entry company.

Step 1. Determine your business plan

The first and foremost thing you should keep in mind while starting a data entry business is identifying your business plan. You need to ask yourself these set of questions so that you can plan your business efficiently:

  • Am I going to start from home or straight up start a company?
  • Am I ready to invest my savings into this business?
  • Do I have a back up plan if this doesn’t go as expected?
  • Do I have enough knowledge of excel and other data entry related softwares?
  • Do I have team management capabilities?
  • What is my target market?
  • How do I approach clients?

If you can answer these questions in a positive manner, you can start your data entry company.

Step 2. Identify the costs incurred

The second step should be to identify the costs to be incurred in computer systems or staffing. 

As stated above, there are very low level of initial investments required for a data entry business. One of the reasons behind it can be that it can be operated from home. You need to identify the costs of the equipment for this purpose.

If you are starting your business from home, do not involve a huge amount of staff members so that you can save money to be invested in purchasing of a workshop on later stages.

Step 3. Get yourself registered

No business can be considered legal if you do not get yourselves registered as a legal entity. You need to form yourself as an LLP (Limited Liability Partnership) or a Sole trader in order to start your business.

These are the certain important certifications needed in order to establish your data entry business:

  • GST registration: You need to get a GSTIN (Goods and Services Tax Identification Number) for your entity to be considered as a legal one and start trading services.
  • LLP or Sole Trader: You need to form yourself as an LLP (Limited Liability Partnership) or a Sole trader in order to start your business.

Step 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Step 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Step 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a data entry business.

Service Agreement

Data entry businesses should consider requiring clients to sign a service agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership.

Step 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Step 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

Step 9. How to approach clients

The most important thing are the customers. Without customers, no business can survive. Same is with data entry business. You need to think of a way to approach clients. This can be done very easily if you have enough knowledge of internet.

You can either start the business as a freelancer and register yourself on different sites like,, or or you can directly approach clients or companies with your resume and impress them with your talent.