Every field has some legal factors and when you want to enter into this, you should know those legal factors to protect your business from loss.
Are you going to Starting A Business?
Congratulations on your new journey!
Your initiative may meet your demands and make your career as you want.
You should run your business with your passions and in a smart way.
It is very important to make a strong relationship with clients and customers. You should have the knowledge about the market because this is the place where you will make a place for your business.
As a startup business you should have a good understanding of the basic laws, regulations and rules that are applicable to make your business successful.
Let’s start to discuss basic legal tips for business!
Table of Content
1. Formalizing your business structure
This is my first tip!
Starting A Business, it should be important to formalize your business structure. It gives a clear idea to your employee and also to you.
Your employee can understand the nature of the business and what type of work the company is going to do.
It is your responsibility to give a clear idea to your employee. For this reason, you should have documentation of your business policy.
This is a very basic thing that should be followed by business owners.
Business needs to be clear to all that help your employee work with a free mind without confusion.
Founders will need to classify their business such as
-public limited partnership.
-limited liability partnership etc.
It is very essential to have this clarity at the beginning stage of the business.
As I said, it helps to understand your market, what type of service you are going to offer to your customers and how you want to run your business.
One more thing, you can document your business goals and mission- vision. I can say one thing in this note that it helps to attract customers as well as employees.
When a person can get to know that it is your vision and you will do this in 5 years, that gives an interest to your employee to give the best performance for the company.
2. Applying for a business license
Without a License, you cannot run a business!
Now you may understand the importance of the License in the business field. Starting A Business, you need to first think about it before going to something else.
It depends on the size of the business and its nature.
Lack of relevant licenses, you can face some unwanted legal issues. This is a very unfortunate thing for a business. When you start a business, you have some types of expectations about your business.
These types of issues can break your confidence!
You need to just understand which license should be appropriate for your business. After that you may focus on that.
A business license is a legal document that refers to your business having been registered by an authorized agency.
It is an official process that you should do when you Starting A Business.
You may call this process an ‘official register’.
3. Understand The Tax And Company Law
Tax is part of the business.
Tax and company law is part and parcel of every business. Every business is governed by tax and corporate law. You’ll need to engage an accountant to run the tax department. To handle all the legal formalities for a business startup, you must contact an experienced business lawyer.
You should have the knowledge about this.
Starting A Business, it is quite difficult to make yourself a tax expert. If you are not very confident, then you can hire a CA who can support you in this factor.
There are different types of taxes that you should be aware of to run your business on a track.
You will see that there are –
- Central tax.
- State tax.
- even local taxes.
Those may be applicable for certain businesses. You may understand which taxes should be applicable to your business.
For the legal purpose of your business, you can take suggestions from a general practice attorney.
Different organizations attract different taxes. You should handle these strongly.
- The startup should not be more than 10 years old
- It is incorporated as a Registered Partnership
- Is your business composed of a Limited Liability Company or Private Limited Company?
- Turnover in any year should be limited to 25 crores.
- The startup should not have been formed by splitting or reconstructing an existing business.
Accounts are one of the sensitive parts of the business. You should maintain this part well. If you cannot do so, then you may hire an accountant who can handle your business accounts.
It has been seen that in Starting A Business, many business owners do not pay attention to the accounting part.
Don’t make this mistake!
From the first stage of your business you should focus on all those factors that are very
important to run your business smoothly.
4. Labor Laws
Tax law as well as important Labor law for a business. It does not matter what your business
size is. When you follow the labor law, that affects your employee and gives them the confidence to return the best output.
Before Starting A Business, you may broadly understand labor laws.
PF payment, sexual harassment, maternity benefits and weekly holidays, etc. All those are
including in the Labor laws.
You may fix a person for this work. HR can manage this factor in the interest of the employee as well as the company.
5. Protection of intellectual property
For this factor, you may implement updated technology to protect your intellectual property.
You may use different software such as SIPP. Technology can help you to protect your IT base data from others.
Intellectual property is a secret spice for most businesses, especially technology-centric businesses.
In the technology business, codes, research findings, and algorithms are some of the most common Intellectual properties.
You have to ensure that your soft property is safe by strong technology.
Now you have some legal knowledge about Starting A Business. So, let’s start!
I hope it helps you to understand those factors. Now, your turn.
Let me know how your business is going. All the best!
Subham Shah is a marketing professional tasked with managing different facets of digital marketing. He helps businesses with different SaaS startups, their planning, and execution. He might be a millennial but has a soft heart of old-school hard rock and metal music.