These days, business startups make news headlines every day with new pillars of success. A good number of tech-savvy young people are not interested in a traditional job opportunity and they start their own company/business to earn more revenues, give employment to the talented people, and make use of new technologies for to expand their businesses. But, wait for a while. All things are not rosy as you think.
Most of the entrepreneurs face several problems while starting and operating their startup businesses. In order to build and develop a successful business easily and smoothly, you need to follow some careful tips mentioned here below. These tips will help novice entrepreneurs to establish his lucrative small business without any hassle-
1. Choose Your Business Structure Wisely
There are different types of companies in India, such as Private Ltd Company, Public Ltd Company, Unlimited Company, Sole proprietorship, Joint Hindu Family business, Partnership, Cooperatives, Limited Liability Partnership(LLP), Liaison Office, Branch Office, Project Office, and Subsidiary Company. Different laws are implemented to regulate such companies.
So, before starting your company, you need to take a decision about the type of company you want to have. If you fail here, some major legal ramifications are likely to haunt in the future. Based on your budget, business needs, and resources, you can choose any business model. Most of the people start their business as a Limited Company or a Corporation to protect their personal properties fully and deal with any legal issues if arises. If you don't understand all these company formats, it would better for you to hire Startup lawyers in India. They will help you choose the right business model depending upon the nature of your business and comfortability.
Just see which types of business organizations are beneficial and when:
Parameters
|
Most beneficial
|
Least beneficial
|
Cost of formation
|
Sole Proprietorship
|
Company
|
Ease of formation
|
Sole proprietorship
|
Company
|
Transfer of Ownership
|
Public Ltd Company
|
Partnership
|
Continuity
|
Company
|
Sole proprietorship
|
Regulations
|
Sole Proprietorship
|
Company
|
Flexibility
|
Sole proprietorship
|
Company
|
Availability of capital
|
Company
|
Sole proprietorship
|
Liability
|
Company and LLP
|
Sole proprietorship
|
2. Make All Business Contracts In Writing
A company or business represents the interest of several parties, such as the company owner, employees, CEOs, shareholders, investors, affiliates, etc. Therefore, in order to avoid any conflict, you must make business contracts in writing. Keep one copy and hand another copy of the business contract to parties involved in it. You must keep in mind that business contracts are regulated by different laws depending upon the nature of the contract. If you are not familiar with the legal formalities required for business contracts, then take the assistance provided by the corporate law firms. Written business contracts reduce the chances of fraud in business operations.
3. Fulfill Your Tax Obligations
Taxes are a necessary part of doing business and the worst thing about them is that they are time-consuming and easily error-prone. The taxing authorities provide you due dates and directions for filing your taxes without any fail. Filing and paying taxes on a timely basis is essential failing which you will be subject to tax penalties, sanctions, interest, criminal proceedings, etc.
All entrepreneurs want to reduce their tax liabilities as far as possible. So, it would be better for you to hire a specialist tax lawyer and ask him/her to deal with all your tax liabilities as per the existing laws and regulations. It legalizes your business activities, keeps it away from hefty fines, helps you to run your business smoothly.
4. Obtain Your Necessary Legal Documents Without Any Delay
To operate your business successfully and smoothly, you need to have NOC documents from different departments and various papers as well, such as confidentiality agreements, partnership agreements, payment agreements, etc. It will be easier for you to get all documents prepared if you are backed up by the competent lawyers. Kindly read all the documents at 2 times before you agree to the terms and conditions written in those agreements or papers. Once you sign those papers, you are bound to follow them.
5. Take Steps To Protect Your Intellectual Property
Protecting your intellectual property is crucial if you are expecting grandiose success in your business. The Intellectual property contains all those unique items that you invented and provides you economical benefits. It may include inventions, designs, original works of authorship, trade secrets, etc.
Unlawful use of your products/services/materials can damage your business greatly. Therefore, you should hire legal experts that are expert in dealing with the cases of IP, copyright, and trademark infringements. It will help you to protect your IP easily and ensure the success of your business.
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