In India, along with how to form a start-up a there is a necessary part which is the legal requirement of a Start-Up and its necessary aspects. We are here to cover the necessary aspects of it & provided an easy to use guide as to make it easy to understand the legal formalities.
- Choosing your type of Company:
This can be termed as the first step towards your Start-Up where you must choose the type of Start-Up will be like a Private Limited Company, Limited Liability Company, One Person Company, Partnership or in future a Public Limited Company.
- Company Incorporation Process:
If you preferably choose a Limited Liability Company, Private Limited Company, or a One Person Company we have incorporate via SPICe INC32 form which will cover:
- Director Identification Number (DIN)
- Company Name Reservation (RUN)
- Certificate of Incorporation (COI)
- Permanent Account Number (PAN) Application
- Tax Deduction & Collection Account Number (TAN)
Apart from the above documents which will be obtained there are other important documents that have to be obtained which are:
- Memorandum of Association & Articles of Association:
- Digital Signature Certificate (DSC) Requirement:
- Start-Up India Registration: (Optional)
Start-up India is a flagship initiative of the Government of India, The Government through this initiative aims to empower Start-ups to grow through innovation and design. The Registration has to be done online on Start-Up India website. There are various advantages like:
- Tax Exemption for 3 consecutive years
- SIDBI – Fund of Funds
- Ease in Winding Up
- Certification under Labour & Environmental Laws
- Patent & IPR Protection
- It is advised to follow to gain the taxation & various other advantages.
- Licenses & Registrations:
There are various Authorities with which a business entity must be registered with:
- EPFO (Employees Provident Fund Organization)
- Shop & Establishment License
- ESIC (Employees State Insurance Corporation)
- Professional Tax Registration Trademarks, Copyrights & Asset protection:
To protect your brand & its brand names form being misused it is necessary to protect the Start-Ups logo, trademarks, taglines, & important assets. To do this there has to a filing of Trademarks, Designs, and Patents whichever is available with the Office of Controller General of Patents, DIPP.
This is a necessary measure to be taken against misuse & exploitation of the brands and from defamation, misuse of the brand. As per law the company, the company can use the word “TM” against its name from the day the application is approved.
To get this you have to visit the Website of ASC Group.
- Business Policies:
From time to time a business may require clarity on activities, relationships, structure & workings. For this, various policies must be created from time to time. These include:
- HR Policy
- Marketing Policy
- Website Terms & Conditions
- IT Policy
- Rewards Policy
- Cancellation Policy
- Code of Conduct Policy
- Sales policy
Various Policies like these must be created to protect & shield the business from all aspects. The policies form an integral form of protection from unnecessary legalities as well provides clarities of grey points and areas which may not have been previously covered.
Eligibility for Start-Ups:
- Must be registered as LLP, Pvt. Ltd. Or Partnership
- Must not be formed from Splitting up
- Must not be older than 5 years
- Must not have turnover of more than 25 years
- Must be unique and with a new service/product
- Must be approved from DIPP
These criteria’s must be met for successful eligibility & registration of Start-Up if even one of these criteria is not met then you will not be eligible for a Start-Up.
