How to Set Up a Business in India

Business establishments form the backbone of any economy and are often a significant indication of the health of the economy. That is why administrators and governance officials are always keen on introducing policy measures favourable for establishing new businesses. Start-Up India and Make in India are two such campaigns started by the Indian government, which have witnessed significant stimulation for new business. While establishing a new business gives one substantial autonomy and freedom, it also entails several compliance obligations. These have been discussed below. Various Compliance Requirements for Establishing a New Business in IndiaRegistering the Entity: The first and foremost step toward establishing a new business in India is to register the business. Based on the types of the business and the sector within which it operates, it might have to obtain registration from the Registrar of Companies. Also, in case the sectoral regulations require special approval from additional authorities, for example approval from TRAI in the telecom sector, from IRDAI in the insurance sector or from the RBI in the banking sector, the entity would have to secure the relevant sector-specific registrations and authorizations. Tax Compliance: In order to ensure that the entity is compliant with the revenue related obligations, it would first need to acquire a Permanent Account Number. Subsequently, depending on whether it comes under the purview of the Goods and Services Tax Act, 2017, the Income tax Act,1961, the Customs Act, 1962 etc. the entity must according file the returns under the relevant tax legislations. Intellectual Property Laws Compliance: While deciding the name of the establishment, the entity must ensure it does not resemble closely with the trademark or copyright of another existing establishment. Also, during the operations it must be ensured there is no violation of patent protection granted to any product or process. Labour Laws Compliance: The Indian labour law regime is quite rigorous and extensive and provides throughthe Code on Wages, the Industrial Relations Code, the Code on Social Security, 2017 for the maximum working hours, conditions of employment, safety at workplace etc. Every new entity must ensure that while conducting its operations, it is not in violation of these labour legislations. Special Exemptions for Start-ups: In order to incentivize more and more individuals to set up new and independent entities, the government of India has rolled out several schemes to boost start-ups, for example, fast-track IPR applications, tax exemptions for initial few years, option for self-certification under certain labour laws and certain exemptions from filing of annual returns etc. Therefore, if an entity qualifies as a start-up as per the DPIIT Notification dated February 19, 2019, it must avail these schemes for its benefit.

How Ricky Chopra International Counsels Can Help You in Setting up a New BusinessThe Corporate and Advisory team at RCIC is well-equipped to assist you in all procedural and legal compliance requirements necessary for successfully establishing a new business in India. Being one of the Best Corporate Law Firms in India , the dynamic team of lawyers at RCIC has experience in advising clients on tax laws, securities laws, IPR laws, competition and anti-trust laws etc. in the past. Moreover, the clients of RCIC vary across diverse sectors from oil & gas, pharmaceuticals, education, to banking etc. Decades of experience of assisting top notch corporate houses has provided RCIC with an edge over both, procedural and substantive aspects of laws applicable to new businesses, along with an accurate vision for predicting the short term and long term legal implications for the sector. ConclusionThough the Indian government is constantly making efforts to make the process of establishing a new business smooth and hassle free, legal advice for the same is still recommended so as to ensure even the slightest nuances of the law are complied with. This is because even after registering the business, there are a lot of annual and event specific filings that need to be made and taking legal advice would help take-off the burden from the entity so it can focus solely on operating its business.

Ricky Chopra International Counsels is one of the best law firms in India. It is a new age law firm with rapidly expanding horizons.