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

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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
  6. 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.
  7. 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.