India’s Startup Laws – an Entrepreneur’s Checklist
Advertisement
Advertisement
It’s critical for entrepreneurs to have basic legal knowledge. While startups innovate to disrupt society in general, and laws of the land have to catch up to them, there are specific legal aspects that an • Choosing a Business Type: At the absolute beginning, when you set up your organization, you must brand it as a ‘private limited’ or ‘single proprietorship’ or something else.
While this may seem unnecessary, it goes a long way to decide your company’s visibility, sustainability and profitability.
Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More
Choosing your brand will depend on your long-term goals and vision. Every type has a separate set of laws, and you have to decide keeping the existing legal frameworks in mind.
• Taxes: Taxes can be taxing. Every company has to pay Central, State and Local taxes. You will be in a better position if you know the basics of accounting and the how taxation works.
Advertisement
Tax laws are tricky. More importantly, taxes vary across sectors, regions and products. Keep all that in mind.
• Securities Laws: You’d want to list on the stock exchange at some point. The Securities and Exchange Board of India (SEBI) reforms these laws periodically. Keep up with these.
• Business
• Labour Laws: It’s obvious you’ll have people working for you. You’ll also need freelancers and contractors. Those are all protected under labour laws.
You must follow labour laws. This will increase their productivity and morale as well.
Advertisement
•
Timely IP audits are important. Also, it’s critical that you file the right patent/trademark/copyright claims. This will prevent theft.
• Information Technology Law: IT laws include digital signatures and e-contracts. As you start using proprietary software and cloud computing services, you’ll get your hands on a bulk of data collected from consumers.
You MUST protect your client’s privacy electronically. There will be hackers who’d want to steal this data. That’s where knowledge of IT laws come in handy.
• Contract Law: When you can’t always hire, so you hire contractors. Contracts are indispensable to entrepreneurs.
Advertisement
Hence, basic knowledge of fundamental principles of contracts can help.• Settling Disputes: Disputes are inevitable. What’s important is how you settle them. When disputes arise, legalities do creep in and things do get messy.
Since you are the CEO, if you know a bit about the formal and informal ways of dispute resolution, it’ll take you a long way. The best friction is no friction.
We good to go?
Happy Start-uping!
Advertisement
Image Source Advertisement
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- India Inc marks slowest quarterly revenue growth in January-March 2024: Crisil
- Nothing Phone (2a) India-exclusive Blue Edition launched starting at ₹19,999
- SC refuses to plea seeking postponement of CA exams scheduled in May
- 10 exciting weekend getaways from Delhi within 300 km in 2024
- Foreign tourist arrivals in India will cross pre-pandemic level in 2024