Startups Laws
Law for Startups in India
The legality framework guiding startups in India is crucial to understand when initiating a venture in the country. Among the most significant laws to which a startup must pay attention are:
- Companies Act, 2013
Formation: A startup may be formed as a private limited company or one-person company (OPC).
Registration: The relevant documents are filed with the RoC.
Corporate Governance: The principles of corporate governance are followed. - LLP Act, 2008
Formation: Even start-ups can opt for LLP’s which provides a hybrid of both forms – partnership and company
Registration: As is the case with companies, LLP has to mandatorily register with RoC
Liability: the liability of partners would be restricted and shall not touch the personal assets. - FEMA, 1999
Foreign Investment: To invest in foreign investment, the start-ups are required to abide by the provisions of FEMA
Compliance: All the above items mandatorily have to comply with FEMA provisions to ensure free affairs without imposition of penalties. - Intellectual Property Rights Laws
Patents: Protection for inventions and processes
Trademarks: Protection for brands and logos
Copyrights: Literary, artistic, and musical works. Registration: The startup should get its intellectual property registered in order to protect the rights. - Labour Laws
Minimum Wages: Compliance of minimum wage laws is a must
Working Hours: Compliance of prescribed working hours and overtime
Social Security: Providing social security for the employees - Tax Laws
Income Tax: Most start-ups will be eligible for tax benefits and incentives.
Goods and Services Tax (GST): Most of the firms need to adhere to the GST laws. - Startup India Initiative
Benefits: The key benefits of the Startup India initiative include tax exemption, easier access to funding, and government support for Startups registered under this initiative.