Starting up a company or even thinking of doing so is no easy job. It takes a lot of courage and passion to take the very first step. But, in most cases the entrepreneurs go wrong in deciding their first move. While setting up a business, there are a million things that you need to take care of. Although, there must always be a fixed starting point. Right after you come up with the idea and the conviction to sell it, your next step should always be to legally register your start-up idea and company to reserve the rights. In this article, we shall help you through this procedure to make your Start-u registration experience hassle-free.
First of all, let us take a look at some of the company structures that you can have in order to get a Start-up India Registration. There are quite a few functional models in the market.
- Sole proprietorship
- Limited liability partnership
- One Person Company
- Private Limited Company
Based on these categories, your process of registration will be formulated and executed by a legal team. Therefore, before you start taking your company to any new heights, hire a reputed legal team to guide you throughout this process. Now, let’s look at some of the things that you must keep in your mind while working on this phase of your company.
Intellectual property rights registration:
This is something that every company needs to have a look at and get it done. The intellectual property rights are basically meant to reserve things like your company logo, tagline, and many other such assets all to yourself. These rights help you safeguard your creations and your inventions. Also, you can avail these across borders. IPR is a non-negotiable legal procedure that you must not miss out on while setting up your company.
Now, this is something that has been turned into a mandate now by the Indian government for start-up companies. When you start building your mark, you need to apply for a trademark certificate online to avoid duplication of your brand or start-up in any way. Having an authentic trademark certification also works as a mark of genuinity of your company in the market that helps you in creating your goodwill.
Having the rightfully strategized bylaws for your company will help you create a good workspace and cultural atmosphere in your company. You can add CEOs, Directors and stakeholders in your company with proper bylaws. This is basically an instrument to help you build a firm, effective and strategic relationship with your employees, investors or stakeholders.
Patent registration certificate:
Patenting is another very important aspect for any start-up business right now in India. With duplication becoming the order of the market, patenting has become extremely crucial. With the newly launched Start-Up India Action Plan patenting procedures have gone online and two times faster to encourage young entrepreneurs to take up their passion and run their own business.
Before we get into business license, you must know about all the other compulsory registrations that you need to apply for while setting up a business in India. You need to start with PAN or Permanent Account Number Registration first, followed by TAN or Tax Deduction and Collection Account Number and then of course GST registrations.
Then we have to talk about something called Business License that basically as per the Indian Government laws, allows you to run your business according to its jurisdiction. It gives you legal agency over your company. The nature of your company shall determine the type of your business license. Some of the examples are as follows, Shop License, Trade License, Health License, Safety License, Establishment License and many others.
Third-party or non-disclosure certificates:
It is best to frame non-disclosure agreements with your third parties in detail with the help of your legal team. Everything should be properly enumerated in these agreements to help your start-up flourish. Make sure that you keep the ownership of your intellectual properties to yourself and no third party can claim it from you. Termination, breaches and policies everything should be discussed in these agreements.
To encourage young entrepreneurs, the Indian Government has come up with something called tax exemption for the start-up businesses. Under this scheme, as a start-up founder you can access full 100% profit of your company without paying any taxes for the initial three years out of five years. Only Minimum Alternate Tax is applicable.
The Capital gain from the sale of long-term assets is exempted from income tax if the gain is invested in business funds that are used to purchase assets like technology, machinery etc. For the investments made by resident investors, there are enormous tax exemptions. For the patents registered and developed in India, a discount of nearly 10 % of the income it generates internationally is available.
There are some companies that need specialized registrations to run their businesses legally. Some of these categories are:
- IEC code (for import & export business)
- FSSAI License (for food and beverage business)
- Kosher Registration (for Kosher goods)
- Halal Registration (for Halal goods)
Can I start a business without registering in India?
You can run a sole proprietorship business in India without registering it but you have to register it with your local government to file and collect taxes. Although, start-up India registration is not that difficult.
Can anyone start a start-up in India?
You can start a start-up any day in India with the help of your friends, family, angel investors and venture investors to set up your business.
Which start-up is best in India?
Well, there are quite a few names that have proven their might in the start-up business in India. Some of them are: Groww, Meesho, Nykaa, Swiggy etc.
What is a unicorn start-up?
Unicorn start-up means any company or start-up that is privately owned with a valuation of $1 Billion.
How do start-ups get investments in India?
There are many ways through which you can look for investors for your company. Some of them are as follows:
- Self Funding.
- Venture Capitalists.
- Angel Investment.