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Legal Overview for Setting a Business in India


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Legal Overview for Setting a Business in India

India is slowly emerging as one of the better places to start a business with the potential of better growth. If you are from India or a foreigner then setting up a business in India is not hard, it is relatively simpler. There are many industries that can help to prosper your business nicely. If you have better business growth ideas and want to set up a business in India, then you need to understand the legal aspects of it. There are a few legal obligations that you must understand while doing a business setup in India. Before starting the business, it is important to opt for a particular business structure. Some business structures are Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company, Public Limited Company, etc. We will look at some basic legal obligations while setting up business in India.

What are the legal aspects of business setup in India?

Here are some of the legal overviews of setting a business in India:

1. Business Name

You first need to decide the business name while starting the business in India. Make sure that your business name is not claimed by another entity and it must reflect the ideology. You can also trademark your company name so that no other entity takes this name. You can also make a proper website by registering a domain name that resembles your company name and business.

2. Licences required

Depending on the type of business structure you opted for your company, you need to take the license accordingly. For example, for starting a Sole Proprietorship firm, you need to take a Shop and Establishments license and other licenses as mentioned by a particular state.

3. Make all the necessary registrations

After taking the necessary licenses for your firm, you need to do some of the registrations. There are some general registrations and some specialized registrations as per your business type.

Some general registrations are:

– Permanent Account Number

– GST registration

– Tax Account Number

– Bank Account

Some specialized registrations are:

– FSSAI License (To start a food business)

– IEC code (To do import and export business)

– Kosher Registration (To deal with kosher goods)

– Other licenses as per the type of the business.

4. Understanding the tax aspects

Taxes are inevitable for any business, so a proper understanding of them is important. There are different types of the taxes like central tax, state tax, and in some cases local taxes.

5. Follow the labour law

Labour laws are very important when you hire people in your organization. The labour law will look across aspects like salary, wages, PF payment, paid leave, unpaid leave, bonus, etc.

6. Making a proper business policy

Making a proper business policy is important to have a collective goal for the organization. This will help to achieve the desired target easily and make the company grow.

7. Get business insurance wherever applicable

In some businesses, it is possible to have business insurance. It will help to safeguard the business assets and relieve them from risk which can help you to focus on business growth.

This is a short legal overview of business setup in India. You can come with some better business growth ideas for making your business grow. If you need it, you can even take assistance from any other agency to set up a business in India. Their expertise will guide you properly in setting up business in India.

Meru Accounting provides services for business setup in India. They have a better knowledge about all the legal aspects of set up a business. They have legal experts who can help you to achieve your requirement. Meru Accounting is a popular accounting service providing agency across the globe.

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