InvestorQ : What are the regulator compliances you need to keep I mind when floating your start up company?
Katherine Gonsalves made post

What are the regulator compliances you need to keep I mind when floating your start up company?

Rutuja Nigam answered.
1 year ago

India’s rank has significantly improved due to reforms and other initiatives bought up by the Narendra Modi government. Here are some key legal compliance for an Indian start-up.

· Create a stable business structure as a starting point. Work out whether you want to structure a LLP (Limited Liability Partnership) or a company form depending on their cost of formation, compliance requirements, tax efficiency, objectivity of formation and so on. As a private limited company it is very easy to raise funds from investors.

· Start-ups have to comply with a number of registrations and have to obtain different licences depending on their nature of business. Such licenses include Goods and Service Tax Number(GSTN), Permanent Account Number (PAN), Tax deduction and collection number (TAN), Import and Export licenses, Shop and Commercial certificate, registrations related to employment etc.

· Filing of procedural compliance is mandatory. A number of reporting requirements have to also be fulfilled by start-ups depending on nature of their entity and investment involved. In case of Companies, mandatory registration under Indian Companies Act 2013 and reporting of all details related to members, shareholders, annual filings are all mandatory.

· With rise in the ratio of Tech based start-ups in India, a hold over intellectual property and its protection is very important. IP specifies claiming of individual business rights by using copyrights, patents, trademarks etc on some software, designs, blueprints, findings and algorithms etc.

· A start-up has to enter various written contracts like distribution agreements , employment agreements, service agreements, consultancy agreements with consultants, Non-disclosure agreements (NDA) with third parties for security of confidential information, lease agreements, partnership agreements, shareholder related agreements. It is critical that these agreements are not one-sided and are negotiated properly.