Things to know about starting an authorised person business

Things to know about starting an authorised person business An authorised person business is one of the best businesses to start at any stage of life. It is for you if you are interested in the financial market. With the significant growth of the Indian stock market, there is an upsurge in the number of authorised persons.

Starting an authorised person's business is pretty easy, but it still requires some preparation.

Let's discuss all that you must know about an authorised person's business.

Authorised persons and their role An authorised person is a critical player in the stock market. Their role is to offer investment and financial services to all their clients. Authorised persons work under a stockbroker who is a trading member of the exchange. An authorised person is a registered member of SEBI. Their job is to expand business on behalf of the stockbroker in their areas by acquiring new clients and encouraging existing investors to invest more.

Some authorised persons act as professional financial advisors and help clients make informed financial decisions to achieve their financial goals.

You can start an authorised person's business even if you have a small capital to invest. It is a business that requires less capital investment than any other business. The sub-broker business has managed to get many's attention, especially the younger generation. The Indian market has only a few brokers officially listed on the stock market. It means that though there are a lot of prospects of success in becoming a stockbroker, it involves heavy licensing regulations and expenses. Contrary to that, starting a sub-broker business will cost only a few lakhs and involves fewer protocols. A stockbroker relies on the sub-broker business model to bridge the gap in reaching out to more investors.

What you need to start an authorised person's business You should consider the following steps to start a sub-broker business.

Choose the best stockbroker with which you want to get attached. There are several stockbrokers to choose from, but your choice should be guided by critical factors like the commission structure, products and offerings, marketing and support, technical abilities, and day-to-day operation.

All these factors will have a profound impact on the success of your business.

After you have chosen the stockbroker you want to get associated with, there are other factors which you might investigate, like the registration process, eligibility, licensing requirements, documents required and the certificates and licences required.

Capital requirements and working expenses The capital requirements to start a sub-broker business stands as follows.

Requirements

Type of investment

Frequency

Details

Initial deposit to the main broker

Capital investment

One-time

The initial deposit amount can vary between 50k to 3 lakhs.

Registration expenses

Capital investment

One -time

The one-time registration fee will cost you approximately 15-20k.

Computer, work station, television

Capital investment

One-time

The expenses will depend on the size of the office and set-up.

Office rent

Working Capital

Monthly

The monthly office rent will depend on the size, area etc.

Salary of staff

Working Capital

Monthly

If you hire a team, a monthly salary will add to your cost.

Internet, phone, and electricity bills

Working Capital

Monthly

To run a sub-broker business you will need high speed internet and phone connection.

Miscellaneous

Working Capital

Monthly

Will vary with the usage of various facilities.

Conclusion With brilliant revenue opportunities, the authorised person’s business is full of opportunities. If you are interested in the financial market and willing to learn, you can start a business of your own. It is one of the best businesses to have with personal and professional growth.