Successful startups are driven by passionate entrepreneurs who are focused and passionate on building unique and better ideas for their business. In any business it is very important to have a strong focus on the existing customers the market. Apart from this point it is equally important to have a good understanding about the basic rules and regulations that are driving factor for the smooth running of any business. From agreement to safeguarding intellectual property to the enforcement of business contracts, it is essential for the entrepreneurs to be aware and up to date with the latest laws governing their business and market.
Here are some legal basics that any startup and entrepreneur in India should be aware of before starting any new business venture:
Choosing the Type of Venture
The first and the most important thing before going for a startup is knowing what kind of business you want to set up. It’s totally your choice, it can be a private limited company, public limited company or any other.
Before you take any decision, it is very important to analyse and the practicality, visibility, sustainability, aptness and related profits that are expected from this type from the business you are going to start.
However, an entrepreneur needs to be very careful about the finer points in the existing legal framework. Different business comes with different set of legal requirements and regulations and businesses man should pay special attention to them before incorporating the business.
Applying for Business Licenses
Licenses are mandatory to run any business. The License varies depending on the type and size of the business. The owners should know the applicable licenses for their startup and obtain them from government or the body who may it concern. The lack of any relevant licenses or document can lead to unwanted legal battles. Business licenses are the legal documents that allow a business to operate in a legal and better way.
The most common license which is applicable for all the businesses is the Shop and Establishment Act which is applicable for all premises where trade, business or profession is carried out. Other business licenses vary from industry to industry. For many businesses VAT registration, Service Tax Registration, Professional Tax etc are required. Hence, when you go for a business get the relevant licence first.
Taxes are one of the most important thing for business. Each and every company has to pay some central, state and local taxes. A business owner who have a knowledge of these taxes will always be in a better position if he/she knows the basics of accounting and the how taxation works. Tax are always tricky. More importantly it vary across sectors, regions and products. So, if you are a business owner and don’t have much idea about it, take help from advocates and legal advisers.
In any business it’s obvious you’ll have people working for and for your business. Labours are always protected under labour laws and it’s their right. It’s must to follow labour laws in order to increase the productivity and morale as well.
Guaranteeing Powerful Contract Administration
Contracts lie at the essence of maintaining any business. An agreement is required to guarantee the smooth working of work and is an awesome system to guarantee response if there should be an occurrence of non-satisfaction of work. Having fundamental learning about different parts of agreement administration can end up being valuable for business visionaries. According to the Indian Contract Act, 1872, all assertions are contracts on the off chance that they are made by the free assent of gatherings equipped to contract, for a legitimate thought with a legal protest, and are not explicitly announced to be void.
Representative contracts are a standout amongst the most urgent perspectives to be investigated while beginning a wander. Organizers numerous a period team up with their own particular confided in friend network in the first place and keeping in mind that this guarantees a specific simplicity and effectiveness to business activities, delineating and formalizing representative contracts with insights about compensation, extent of work and investment opportunities (assuming any) with even your initial couple of workers is constantly prescribed. Having this clearness from the earliest starting point enables new companies to diminish dangers at a later point in time.
In the beginning period of activities, new companies additionally tend to procure contract staff and merchants and having a compelling contract administration framework will guarantee that the correct checks are set up for the convenient satisfaction of required work.
Ensuring Protection of Intellectual Property
Intellectual properties are the secret sauce for most of the businesses today, especially for tech businesses. Codes, algorithms and other research are some of the most common intellectual property which are owned by a particular organizations (business)
New companies can use the ‘Plan for Startups Intellectual Property Protection’. (SIPP) under the Startup India activity. The plan was set up to support and guide imaginative and developing advances among new companies and help in the assurance and commercialization of licensed innovation. For the compelling usage of the plan, facilitators have been empanelled by the Controller General of Patents, Trademarks and Design. Such facilitators help new companies by giving warning administrations, aiding patent documenting and transfer of patent application among different administrations at the very least charge.
We are living in 21st century where we have become technologically advanced and things like e-contracts, cloud computing, digital signatures are used in almost every business. But as we know blessings always comes with a some hindrances. Where there are several advantages of technology some disadvantages also exist. There are hindrance in keeping your data secure and confidential from the hackers, cloud computing, protecting your privacy are not only very common but extremely important too.
Knowledge of IT laws will help you in exploring your business and to maintain security for your business.