The India advertise has steadily become an appealing business sector for remote business visionaries. India is the quickest developing economy on the planet, positioning with the third-biggest economy by obtaining power equality and the world’s 6th biggest economy by ostensible GDP. Entering the Indian market is a convoluted procedure inferable from social and topographical contrasts. Approximately 543,000 new organizations are propelled each month, be that as it may, many flop because of hindrances like savage challenge, monetary administration, absence of arranging, money related emergencies, less information on a specific subject, and so on.
In spite of the attack of investment assets in the startup biological system, a few organizations battle to proceed in the common challenge and eventually shut down activities inside the 5 years of Startup. From this time forward, it is critical to fathom the elements that are halting the development and maintainability of new businesses. In this aggressive business world, you should be adaptable and think greater to support in the contention advertise situation with incredible arranging, appropriate showcase/client examine, the correct decision of business consultancy and top authoritative abilities.
Legal Challenges are one of the biggest challenge encountered by startup companies. The startup companies might lend up into trouble when the company fails to meet all the legal requirements.
For a startup, it is not possible to pool in resources equal to the deep-rooted corporate house. However, with proper knowledge and support from the right consultancy, the risk can be prevented or diminished.
- Business structure: First and foremost thing about business is to classify the top requirement of the business. Based on the set of requirement, the structure of the business is articulated such as sole partnership, proprietorship, a public company, private limited company, or a limited liability partnership. There are certain legal requirements that need to be followed for each business structures.
- Taxation: Full acquiescence with tax laws is compulsory to avoid punishment and penalties. Startups must have inclusive knowledge about their tax liabilities towards the state and central governments. Startups should ensure that they are aware of the new taxes, its impact on the business model and their liabilities.
- Business licenses: To ensure your business run without any trouble, the required licenses have to be attained. Most licenses are based on industry-specific. For instance, a startup food business has to obtain licenses relating to food safety, health, and food adulteration. The conditions mentioned in the license have to be fulfilled to avoid further complication.
- Labor Laws: When a startup inaugurates operations and employs employees, it is subject to the countries labor laws. The major challenge for startups is to safeguard that it is compliant with all the appropriate labor laws. These laws relate to minimum wages, provident fund, payment of gratuity, maternity benefits, and prevention of sexual harassment at the office, etc.
- Listing Requirements: A company has to comply with relevant SEBI regulations to list its securities in a stock exchange. These are regularly updated, and hence it is important for a startup to be well-versed of all the up-to-the-minute developments.
- Protection of Intellectual Property: With the growth in startup entrepreneur, the company needs to create intellectual property (IP) simultaneously comprises of codes, research findings, algorithms, designs, etc. This is done to protect the IP from misusing by other entities or competitors and gain profit. Basic tenets of intellectual property rights should be considered such as copyright protection, trademark registration, patent filing, etc.