Step by step legal procedure to start a business in India
Tags: Business In India, Doing Business In India, Startup, Consulting Firm, Business Consultants

Setting up a business requires different rules and technicalities that could be adopted to ensure the business runs without any hurdles and yield maximum profits. To incorporate a business in India you need to have a firm foundation, a strong legal foundation, and a proper business model. The business model opted by any person focuses on business growth and the least interference. For starting up a business, it is very essential to know the legal system in which you are planning for India entry and also satisfy the needs of the specific business structure. Hence, it is very much essential to know how to set-up and select one business to achieve optimum success in the industry.

Legal procedure that is mandatory to start a business in India:

Step 1: Setting up a business entity: The first step is to decide the right type of business entity that will help in increasing the business value and will adhere to a business plan. The right business entity helps you in avoiding high tax rates and will prevent personal liabilities in case of a loss. Different kinds of business entities are proprietorship, One Person Company, Partnership, Limited Liability Company, Private Limited Company, and Public Limited Company.

Step 2: Discuss, Formulate and Sign the Founder’s Agreement: Generally while India entry business founders begin a business without proper documentation which is due to lack of knowledge, reluctance for paperwork or mutual discomfort to discuss the issue. It is mandatory for a business to have very clear agreement among the founders about the investments and the distribution of profits.

Step 3: Attain the Required Registrations and Licenses: Business necessarily needs to be registered with different government authorities, subject to its nature and activities of the business. While starting a business there is a need to file statements with the government from time to time. Different registrations and licenses required to set up business consist of obtaining the Import Export Code, Professional Tax Registration, Shop, and Establishment License, etc.

Step 4: Trademark your Brand: It is essential for a business to protect its trade name, logo, goodwill, tag line, and key phrases from misuse. Trademark provides you security against misappropriation of value that you add in your business through branding and advertising.

Step 5: Systematize your Accounting and Taxation Systems: A well-designed accounting system is among the most significant parts of your business. Without it, you would not be able to keep a track of the various transactions conducted by your business such as the assets it owns, to whom it owes money and amounts receivable from its customers.

Step 6: Make Business Policies: To set up business there is a need for stakeholders, clients, vendors, and employees. Business policies permit a business to represent a clear framework of relationships. Employees know the business’s expectations and operating framework. Well-structured strategies enable the evolution of the best principles of corporate governance at the venture.