7 Important Startup Laws That An Entrepreneur In India Ought To Know
You have a great business idea and you are planning to start up soon. In fact you have already started researching on your target market, demographics and talked to investors regarding your business objectives. But have you given any thought on the legal perspective? There are certain laws that you need to aware of if you are planning to start your own business. If you do not make a note of the legal things, you will be risking your business big time. Hence this post is going to fill you up regarding the important startup laws and regulations that you need to maintain in order to run your business smoothly.
Why is it so difficult to run a business in India? It is because of the fact that India’s legal system is quite slow. This is the main reason why it ranks 134 among the top 191 economies of the world. It is way easier to do business in countries like Nepal, Bangladesh and Pakistan. But India? Well you have to deal with laws and regulations every once in a while. However, things are going to be better as our Prime Minister Mr. Narendra Modi promises to deliver useful changes soon enough. We are eagerly waiting for that change. As for now, all we can do is mug up all important startup laws and regulations that shape up business in India so that we do not face any kind of inconvenience later on.
7 important startup laws that an Indian entrepreneur should be aware of
1. Accounting and tax laws – Are you well acquainted with the important startup laws on accounting and tax laws in our country? Well if you are not and still plan to do some business in India, then it is crucial for you to do some research on the taxation laws in your area and your specific business sector. You have to pay some taxes to the government when it comes to starting a new business. And what more? The tax laws can be pretty confusing at times. So it is better to opt for an experienced person to guide you through the entire process of paying taxes to the government for your new business.
2. Selecting the right business vehicle – So you have this idea of a new business and you want to start with it as soon as possible. Have you decided on the type of business venture you are about to undertake? Is your organization going to be a Public Limited company or a private one? Or you wish to start up a partnership firm or a limited liability partnership?
It is advisable to talk to a professional solicitor before you decide on the type of vehicle for your organization. And furthermore, that decision will take some time as you have to ponder on your business goals, mission, vision and objectives. Each business type follows certain important startup laws and you have to be careful from the very beginning otherwise you may lead your business to doom by paying hefty sums to the government as fines.
3. Laws concerning labor in India – This is one of the most significant things that you have to deal with while doing business in India. You have to be well acquainted with the labor laws if you wish to save your business from unfortunate incidents later on. Furthermore, you have to make your employees considerably happy so that they do not spread negative reviews about you in future. Coordination has to be there to enhance productivity. It is all about how your employees are faring in the company you have started up and how far are you really able to solve their problems. Complying with the important startup laws pertaining to labor will lead your business to success and also make the environment healthy enough for your employees to work.
4. Securities laws regulated by the Securities and Exchange Board of India – Do you have any basic idea regarding foreign investment, angel investors, venture capitals, crowd funding and joint ventures? If not then you have to be well acquainted with the Securities laws, one of the most important startup laws in India that are regulated by SEBI or Securities and Exchange Board of India. If you keep yourselves updated with the new laws of SEBI, it will help you to turn your business into an enterprise soon by raising funds and getting angel investors to invest in your business.
5. Information Technology laws – Yes, IT laws also constitute one of the important startup laws for your business to grow into an enterprise. We are living in a world where terms like cloud computing, e-contracts, digital signatures, privacy protection and security from hackers are quite common. You have to research on the IT laws to provide a 100% safe and secure environment to everybody related to your business.
6. Important startup laws for building contracts and settling disputes – If you want to run a successful business, contracts will definitely come in your way. You have to be well acquainted with terms like arbitration, conciliation and mediation to build successful contracts and settle disputes if any. It is always advisable to take help from a professional attorney to handle such things but your knowledge is also crucial as you are the owner of the business.
7. Important startup laws that safeguard your intellectual property – You have to protect your business in every possible way. Hence getting a bit of basic knowledge on IP audits, copyrights and patents is of no harm. This will not only help your business to grow but also enhance revenue.
So, you see, starting a new business is so much more than just having an idea of business. Laws and regulations will come in your way every once in a while and you have to deal with them. So get ready for a thorough understanding of these necessarily important startup laws mentioned above so that you can take your business up and high without facing any adverse situations. Let us know whether this article helped you in any way or you wish it would be better if we can add something more to it. Your feedback is most welcome. Wish you all the very best for your new business!