To enter a business, it is very important to know the laws governing that business because otherwise you could make mistakes which would cost you a whole company.
Here are a few laws in India governing start-ups every entrepreneur should be aware of:
1. Incorporation laws
Before starting any kind of business, you need decided what category of business your start-up falls under. Depending on the category it falls under, you need to comply with incorporation stated under Company laws.
2. Accounting and tax laws
All business need to be state and central taxes and it’s always better to know about the laws you will be complying with before starting your business. Tax laws are different in different regions and change with the type of business as well. Tax laws are tricky but it is always better to be acquainted with them before starting a business.
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3. Labour laws
Your start-up cannot run without employment of labour, it is necessary to look into the laws regarding to labour. There are certain compliances and laws which regulate the timing of work and the nature of work. If you don’t comply with the SEBI laws; you could be in great trouble as the success of a start-up depends upon a healthy employee-employer relationship.
4. The Securities and Exchange Board of India (SEBI) laws
As your company expands in size, you will want to list it under stock exchange which is why knowing and complying with SEBI laws is important. You need to keep a track of SEBI as it gives you a clear idea about Foreign direct investment, angel investors, crowd funding, venture capitals and joint ventures.
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5. Finance laws
This is the most important set of laws because no one starts a business to incur losses. These laws govern the broad umbrella of business fiancés including FDIs, VCs and investors. Thus, it is very important to keep up with the financial laws.
6. IT laws
If you are living in the bubble that your company isn’t IT based which is why these laws don’t apply to you; you’re mistaken because IT laws cover a way broader spectrum. Laws governing cloud computing, e-contracts, digital signatures, securing data from hackers, ethical hacking etc, all, fall under IT laws.
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7. Contract laws
A business cannot be independent of all contracts; you will need to get into contracts with VCs, investors, stakeholders etc. These contracts are based on the contract laws which are crucial. If these laws aren’t abided by, a contract could be declared null and void.
8. Intellectual property laws
If you’ve come up with an original idea and don’t want it to be copied, you need to know these laws. All laws governing copyrights, patents, trademarks, design claims etc fall under this category. Knowing these laws will not only save your ideas from being replicated but also increase profits in the long run.
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