Starting a business entails planning, market research, and understanding the legal and compliance requirements. Let’s go through the below listed five essential requirements while starting a business.

 1. Determine the type of business you wish to start

In India, you can register your business as one of the many options available. The requirements and regulations will differ depending on whether you want to establish your startup as a Sole Proprietorship, Partnership, LLP, or a Private Limited Company. These are some of the many sorts of company types that can be incorporated and also the process to incorporate and the compliance varies with respect to the company type and so does the pros and cons. Hence it becomes very important to ascertain which company types suit best to the proposed business. For example: Sole Proprietorship might suit a Cloud kitchen or a bakery at home but a Private limited Company might be suitable for an IT business intending to raise funds from Venture Capitalists.

 2. Register your Startup

Once you’ve decided on the sort of business structure you want to incorporate, it’s time to register as a legal entity. We need to be aware that the method for registering your company will differ based on the decision you made earlier. You may require expert support to make the procedure easier. For example: Only GST registration would be required for a Sole Proprietorship but LLP/OPC/Private Limited Company requires a prescribed procedure to be followed as given by the Ministry of Corporate Affairs(MCA) hence professional help becomes mandatory.

 3. Licenses suited to your industry

After you’ve registered your business, it’s time to look at compliance that is relevant to the activity you are performing. For example You intend to start a restaurant, apart from being required to register your company, you will also require permissions such as the Food Safety License or the Prevention of Food Adulteration Law, Excise License, Municipality permissions etc. which shall not be required if it’s a clothing business..

4. Company Law Compliance’s

Meetings with board members, filling out key documents, auditing information, and preparing reports are the next set of compliances that a registered company must follow. A few mandatory compliances include Board meetings, Annual General Meetings, the appointment of an auditor, the filing of e-forms, and so on. You have to take care of these obligations while you start your business to stay compliant and avoid any penalties or fines.

5. Intellectual Property Rights (IPR)

Startups rely heavily on innovation, creativity, and individualism to achieve success. Entrepreneurs start a company with the goal of introducing something new to the world, such as a product, service, or procedure. It is critical for startups to safeguard the intellectual property rights involved in the development of their firm. Registering Copyright, trademarks, patents, and non-disclosure agreements are some of the steps entrepreneurs may take to safeguard their intellectual property.

 In a nutshell, we can say there are several laws and regulations to obey, which might be confusing. However, it is critical that your startup adheres to them in its early stages to guarantee that the company runs smoothly and consistently.