Queries regarding the mandatory procedures and accompanying paperwork tops any amateur entrepreneur's FAQ list. Some of the most significant requirements are as follows:
1.Naming the business: Better check if it is available, before you get sued for trademark violation. Avoid names like national etc to give a wrong impression.
2.Incorporating a business: Registering or incorporating is the first step. So, if you have a partnership firm, you better register under Partnership act. If you are a corporate, under Companies act etc.
3.Business license: A business license is a must in order to conduct a legal business for some types of business like Alcohol, Tobacco, Pharmaceutical retail etc. Better get it.
4.Tax and liability issues are different for each type of business category hence you may need to consult a legal expert for help.
5.Location: One may need to take zone permits for locating a business in a particular area, so better check the legal availability.
6.Employees: While hiring people, strictly adhere to immigration and child labor laws.
7.Intellectual Property Rights: IPR, as it is known, should be used to protect your ideas from being misused or appropriated by others. You can either register the intellectual property as a trademark, or protect it under the Copyright and Patent Act.
8.Taxation: Legalities surrounding taxation must also be strictly adhered to.
9.Health and Safety: Health and safety standards must be maintained at work in order to ensure the safety of employees.
10.Seller's permit: A seller's permit will be required if you plan a retail outlet.
Find all the legal forms and contracts that you may need. What is most confounding about the legalities of starting a business is perhaps the complex terminology used could help you deal with the particularly tricky stuff!
The above was regarding legalities involved during the starting stage. As the business progresses, many other issues may crop up, there could be conflicts with business associates even.
It is important to note that always go for a reputed firm when hiring a lawyer or check his credentials if you have a conflict to resolve.
Recently, at FranchiseIndia.com, at the Brand Licensing conference, two bright advocates, Safir Anand of Anand and Anand and Chander Lall of Lall and Sethi, discussed solutions for issues on IP, Copyright, Trade Mark etc. They also discussed Piracy, especially of Hindi Films, which is their area of specialization, and Licensing issues especially in regard to foreign brands in India as they boast an impressive foreign client base including Bayer Corporation, Cadbury, Citigroup and Coca-Cola.
And when Martin Brochstein, Sr.VP-Industry Relations and Information,LIMA,USA revealed his fears to Chander Lall about law not doing justice to their conflicts on contractual issues because each country has their own law, Lall ameliorated his fears by saying that a right law firm will try new things and push boundaries to get justice for his client, which in India is critical,"
Hence, while we see that there are a number of issues that may need attention of legal experts, depending on the type of business, we must understand that laws exists to make processes a whole lot smoother and are essential for any well functioning society. While the legalities involved in a business may seem onerous, once you deal with them, consider half your troubles gone!