The Vital Startup Laws In India Which Every Entrepreneur Needs To Know


Nurturing a new business includes many things. One such stepping stone knows basics of the startup laws. Before diving into a deep legal sea, let’s have a look at the vital startup laws with which you can start the long journey…



 


Choosing the type of venture

 

The most important thing before pulling up a startup is knowing what kind of organization you want to set up. It can be a private limited company, public limited company, partnership firm, or a limited liability partnership.

Before taking this decision, it is indispensable to analyze and ponder upon the practicality, visibility, sustainability, aptness and related profits that are expected from this type of organization.

Each form of business will be governed by separate laws and not complying with them means loss in the form of heavy fines before you can even start making profit.



Basics of Accounting And Tax Related Laws

Running any kind of business means that one has to pay taxes to the Central/State government or local bodies. Therefore, it becomes a necessity for every new entrepreneur to be aware about accounting details and tricky lanes of the taxation world.

Different sectors have diverse tax laws and it is imperative to be acquainted with any recent changes that have taken place. In fact, tax laws change according to geographical region and the kind of business/product too.

 

Labor Laws

Each startup will eventually have to hire new people. Even if you plan to outsource or employ independent consultants, every such employee-employer relationship will be directed by labor legislations.

Breaching these will not only harm you financially but also spreads a negative review about the startup even before you initiate it.

Productivity of employees and ultimate success of the startup are dependent upon how happy your employees are to work for you.



SEBI Act

SEBI Act governs India’s securities market regulator, public offers of securities, offers of securities by listed companies, the terms of mandatory and voluntary tender offers for shares of listed companies, and the process for delisting of a listed company. Familiarity with Securities laws which is carefully regulated by the Securities and Exchange Board of India (SEBI) will aid in easing out the process of listing.

Keeping a track of various updated regulations issued by SEBI will assist in managing the various stages of nurturing a new business, including fund-raising.



Corporate Governance

A running-knowledge about corporate governance will help a budding entrepreneur to effectively manage and formulate further expansion plans.



Contract Laws And Dispute Resolution

A business survives on contracts. Nevertheless, disputes may be one of the unavoidable consequences of few contracts sometimes. Therefore, fundamental knowledge regarding contracts, arbitration, mediation, conciliation can smoothen the progress of a successful business.



Intellectual Property Laws

Legally protecting intellectual property is of supreme importance to any business. Timely IP audits, filing the accurate trademark/copyright/ patent claims will not only protect your business but increase profits too.



IT Laws

We are living in a technologically advanced era where things like e-contracts, cloud computing, digital signatures, securing confidential data from hackers, protecting your privacy are not only very common but extremely important too. Knowledge of IT laws will help in exploring these avenues and thus, growing your business.



Knowledge Related To Government Contracts

This might not be extremely necessary but a successful venture depends upon a steady flow of funds. Bidding for government contracts can create wonderful opportunities for growth, revenues and reputation building. Hence, knowing about all the above legalities can help out in smooth sailing even on a rough sea. For any Legal support, we will be happy to help you. Contact BDS Legal Services now.

 

About BDS Legal Services :

 

BDS Legal Services is a leading national law firm in India comprising over numerous professionals, with offices in Mumbai (Headquarter) and Pune. BDS Legal Services was set up in 2012 and has since established an excellent reputation for its integrity and value based proactive, pragmatic and innovative legal advice and its ability to help clients effectively traverse the complicated legal and regulatory regime in India. The mission of the Firm is to provide outstanding legal solutions in the chosen practice areas with a strong emphasis on ethics. Clients benefit from the expertise and experience as a large firm while still enjoying the privilege of personal attention and responsiveness of a small firm. Our Practice areas are – IPR, Secretarial, Legal, Company Registration, Annual Filings, Returns and Tax

 

Get in touch for free consultation on info@bdslegalserv.com or call 022 50677213 / 022 50677219 / 022 50677212.

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