Starting a business comes with its own challenges and herculean tasks to be fulfilled through definite organizational ways. It requires all your time in the beginning and demands emotional means too. From the very beginning, technical and financial responsibilities need to be guarded and kept in accordance with legal authority so as to dodge problems and continue to keep smooth business operations in the longer run. You have to remember, it is not one of those 9- 5 desk jobs but a part of your idea – drawing to be an innovation or development entity which requires all your attention and your dedication to be working off-limits to make it a steady success in time.
Keeping the following basic legal guidelines in mind will prove to be beneficial for you before beginning a Startup
Before pulling up a Startup, choose and formalize a business type – be it an LLP, “private limited” or another – whichever is suitable for your long term and short term goals. This is an important part to decide before setting forth with any startup because registration or incorporation of your Startup requires it and it should be according to your venture’s visibility and sustainability. A founder’s agreement, with clearly laid out the business objectives of the founders, is helpful even for its future disputes and therefore should be made.
Acquiring proper business licenses are integral to follow and adhere to the basic laws. It helps keeping up with good business practices and lets you be away from prolonged lawsuits which could cost you huge fines later on.
Registration or incorporation of the your Startup is significant in getting a registration number for your start-up’s lawful validation. You can register online at http://www.startupindia.gov.in/startup-recognition.php and follow the steps and attach the required documents.
Fundraising is an important part for any Startup and you should know about the basic terms such as angel investors, crowd funding, venture capitals and even joint ventures. Familiarizing with it will help you collect the amount to nurture your Startup to its full potential. Knowing about the Securities And Exchange Board of India (SEBI) Act will help you easily enlist your venture in the Stock Market.
Even though Startups in India are exempted from paying income tax for 3 years and provided with several other benefits, it is still mandatory to have some basic knowledge about the Taxation Laws. The all new GST need to be thoroughly understood and acted upon. Therefore, knowing beforehand will prove to be fruitful.
Having an effective contractual system laid out. A Startup might need to hire contractors for several outsourcing operations and business activities. A proper contract is the central core structure which defines the terms and conditions laid out for the certain activity so that if any dispute arises, it can be sorted through the conditions laid beforehand. High competition might pose as a danger to your new innovative activities or ideas drawn by your Startup, and therefore NDAs come in handy to guard your secrets with being attacked by your oppositions.
Managing a clear book of Accounts for your daily business operations and activities lets you have charge of the whole management of the finance department. It would, at the end of the year, show you how much and where specific amounts of money went and added in the venture’s annual income. A proper audit control is necessary too. Having the basic knowledge of Accounting Laws adds you in a pro-zone here.
Innovation, ideas and secrets of a company are their own and it needs to be protected through legal means which safeguards you from stiff competition and enemies at the early stage. Therefore, you should have a few known things about Intellectual Property Acts in your country and how your ideas can be protected.
Employees are the core part of any Startup and your team will decide how much of your dream venture can achieve the defined future goals. To keep them happy and let them prosper in a healthy environment, you should stick to the basic Labour Laws, their safety regulations in the workplace environment and equal wages payment system should be followed. Get the Labour Act Certificate to ascertain that the people working under you are healthy and are being paid minimum wages/salaries per day as accordance to the law which would not bring up any disputes further.
It is a techno-era and all millennials are using technology to avail opportunities at a click. Therefore, those opportunities are not hacked by anybody else, you should keep a close guarded security system in accordance with Information Technology Acts and Cyber Laws and protect your online activities. Even adhere to proper formation and fulfillment of E-contracts, central to any E-business.
These are the basic legal things that a young entrepreneur should keep in mind before starting your business. But please remember, these are just legal things to keep in mind, however, it is good that you consult with a lawyer or a legal advisor for proper understanding of legal criteria what your Startup requires before starting-up.
Also check out key skills one needs to gather before starting your own venture