Business in Bollywood – How to Set Up an Arts or Music Business in India
Thinking about how to set up an arts or music business in India? Stop thinking and start doing with 3E Accounting’s quick guide.
India is a busy and thriving kaleidoscope of culture and performing arts. It’s colossal film industry controls and generates three-quarters of the arts and music sector’s revenue. More than two billion cinema tickets are sold annually while film production averages two thousand movies a year. It is estimated that by 2021, this industry will be valued at over four billion USD. As far as industry performance goes, the arts or music business in India is on a steep and rapid upward curve.
Globally, India is the second-most populous country in the world, with the second-largest smartphone market. It has a very high online market penetration, and online streaming services are enormous right now. Its rapid digitalization has brought industry names such as YouTube and Spotify into the Indian market. Starting a business in this industry might get you a share of a very big pie, indeed!
A Market of Continuous Accelerated Growth
The outlook is excellent for the arts or music industry in India. An increasing number of professionals are turning towards the dynamic Indian market to earn fame and fortune. However, unlike its Western counterpart, India’s industry is what is termed ‘Bollywood-centric’.
The structure is based on a work-for-hire system. Soundtracks are written explicitly by music lyricists, composed by composers, then recorded by ‘playback’ singers. Traditionally, almost all copyright is vested with the film company. However, under the Indian Copyright Act 2012, industry professionals now have long-term copyright ownership.
This has opened other avenues for professionals to monetize their talent or passion for the arts or music business. Artists and professionals looking to start an arts or music business need to achieve both financial and creative success. That means diversifying revenue streams. Some business ideas include:
- Live Shows
- Non-film related music
- Brand sponsorship
- On-demand Websites
- Music or Arts Academy
- Music or Arts Education Platforms
- Lead / Organise Workshops
Become an Influencer, Blogger or YouTuber
Bear in mind that your talent or passion will be your brand. The best way to decide what is the best fit for you is to focus on evaluating and mastering your skills. You will need to market and network your brand extensively to be known. You will also need to start up a company. For detailed information. Generally, companies in India include:
- Sole Proprietorship & Partnership
- Private Limited & Limited Liability Partnership
- One Person Company
To set up your business, you will need specific documentation, which is listed in the Ministry of Corporate Affairs website. Amongst others, these include:
- Incorporation Certificate
- DIN – Director Identification Number
- PAN – Permanent Account Number
- TAN – Tax Account Number & Tax Certificate
- GST Registration
Getting Your Act Together
If you’re still wondering how to set up an arts or music business in India, then it’s really time to talk to the professionals. 3E Accounting offers a one-stop, tailor-made suite of business solutions for your every need.
Contact 3E Accounting today for a new way to talk about business.