Legal Basics that Every Indian Startup Should Know

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 successful entrepreneurs

Startups are driven by successful entrepreneurs, who follow the specific code of conduct to mark the unique solutions, to delight the customers with trust and satisfaction. If we talk about the legal basis for startups, it will be difficult to pace equally for every startup, as it depends upon the business structure that one is following, with its unique features. While it tends to have great importance for understanding the basic concept of market and customer, which will easily grab if one has clarity over the legal basis for startups, which should be used at the time of incorporation of the company.

Every business has a different formalised structure due to distinction in business entity i.e whether the company is registered as LLP or Partnership, Sole proprietorship or have a private limited company registration. As the Companies Act of 1956, make separate legal laws of every business entity, but still, there is the certain legal basis for startups which need to be followed by every startup on similar grounds, while the new company registration or at the time of incorporation of the company.

Following pointers will highlight the legal basis for startups – 

1. Selecting a type of business venture

If we talk about start-ups, then it involves great discussion on how to register a company, and register it under which business entity as a new company registration, hence one needs to keep in mind the pros and cons of every business venture, hence it will be easy then which need to be followed whether private limited company or limited liability partnership registration.

The decision of selecting a business venture will be taken with a new company registration keeping in mind various factors such as – visibility, profitability, practicality and sustainability, Hence one needs to consider these factors for the smooth working of a startup.IT Laws – For new company registration, IT laws play an important factor as nowadays every company works on technology and aids the business with new advancement in the technology to pace the growth of the business. For startups, it is an emerging need to settle upon technical grounds as –

Digital signatures, e-, contracts, protect your privacy of data by adopting different hacking methods for providing safety to the data, cloud computing etc, this assists the startup to structuralise the business with legal basics for startups. Click to know Where to Buy barcodes.

2. Basics of tax-related queries and accounting records

If we talk about legal basics for startups, then it will be beneficial to hold as a legal basis for a startup, due to its relevancy while the incorporation of the company. Again, different sectors have different taxes and even it depends on the business structure as there is a distinction of taxes as per different business entity. The importance of paying taxes to government by the business in the form of corporate taxes and maintaining periodical accounting records for every business is important, to strengthen the viability and legal strength of the startups.

3. Listing the Business with SEBI(STOCK EXCHANGE BOARD OF INDIA )

It is the most important legal basis for startups, as startups or a newly registered company needs to get acquainted with SEBI which assists the startups, at the time of listing, which provides legal status to the business.

3. Labour Laws

For a startup, it is important to know labour laws as labour is the most important resource based on which the existence of the company resists, hence knowledge about the in-depth labour laws is important to have a clear picture of the productivity of the employees, as the real success of the startups lie in their growth and success, hence employer-employee a relationship should be directed by labour law directions.

4. IP Laws and Government contractual records

For a startup, it is necessary to have a piece of knowledge regarding intellectual property rights and even about the contracts of the government which is important especially for startups while the company formation, one needs to undergo various legal processes.

Hence, knowledge of legal basics for startups is important or in case of private limited company registration where only one person has solely responsible for everything. For smooth functioning and success of the business, one needs to consider these legal basics to run a startup.

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