It is easier to start a small business than to do. The founders will fulfill a mission that can trigger concern or two with large tasks. You do not want to break the law just when you start. The best way to prevent such issues is to get acquainted with regulatory enforcement.
But how are you going to do that?
First, it means dealing with all company rules and becoming completely aware of your business activities. Most startups would choose to have register private limited company in India to keep the funding door open. Know if you breach any laws while conducting everyday activities such as signing a contract or filing tax returns. Five quick tips to ensure your organization remains compliant.
#1. Ensure Business Registration and Licenses
If you wonder how to register your company, know that you can choose from several possible business structures. From the registration of private limited companies, there are options to create an LLP and even opt for single ownership. Check the variations between different business models as each has additional requirements.
Again, every state in India has different registration charges, which are part of government fees.
Some companies also need licenses. Check that your company needs an FSSAI registration license for startup of a Fire Department license for Flammable Material enterprises.
#2. Follow the Checklist for Compliance
Next, aim to meet all the enforcement criteria the organization requires. List them one by one – all laws that apply to your company. For example, awareness of the specifications of the GST returns filing and its related due date. If such notifications are readily accessible, you can recognize the measures you need to take to ensure business enforcement. Like the GST return filing, private limited company and LLP annual compliance, etc. Usually, a business secretary takes care of these aspects of running a business.
#3. Be Aware of the Constantly Changing Laws
You want your company to run with sheer dynamism, adding creativity always to business processes. This also refers to compliance. You must be able to keep up to date with the laws in your region. It may be the minimum wage for the factory employees or the payment of GST returns. Failure to comply with the continually changing rules will lead to problems for you, including severe penalties, fines, etc.
Therefore, keep up to date with the new rules regardless of being a sole proprietor or having a business with LLP company registration in India. Keep an overview of some of the best tools available for startups online and search for recent legislative advances. Alternatively, you can be updated on business law by watching news channels or installing such an app.
#4. Consider getting your IPR
Small companies must be protected by their intellectual property rights as they startup. It mostly includes registering the name and logo of the company to write it later. Know that trademarks’ registration involves securing any key terms, slogan, phrases, or a graphic emblem you claim to reflect your brand. It should differentiate your company from the other competitors.
Know, make sure you define a company to trademark a term, not a generic name. For instance, Nike’s ‘just do it’ is a trademarked term. Nike is inspired by the Greek goddess of triumph, pace, and control that also determines what the Nike brand stands for. And if you file your trademark, you have the right to do so, stopping anyone from copying it.
#5. Hire Business Service Professionals
Maybe it would be smart to employ professional services for your small company. It would be best if you outsourced the services out of your comfort zone rather than reinventing the wheel and taking responsibility for the law when it is not your power. In-house integration of the legal and enforcement team can increase the cost of hiring. And if you do, the atmosphere of your company also does not suit the lawyers.
Instead, startups like LegalWiz.in can play by providing customized legal solutions that help your company stay compliant.
The key is to optimize your productivity and to outsource enforcement work to trained professionals. You may contractually employ business professionals or pick their deals from the kit. Ensure you make the right option for a background check, serve customers, and make the team’s experience necessary for your company’s compliance.
Give enough attention to the legalities involved in starting, incorporating, registering, managing, and operating your small business. It is best to channelize your efforts to make your business compliant and avoid anything that jeopardizes your business’s smooth functioning.
It is prudent not to let small mistakes turn to significant losses unnecessarily. Most small businesses fail because they do not give much importance to the legal requirements and procedures which are fundamentally aimed at protecting your business.