{"id":27163,"date":"2021-03-10T14:11:54","date_gmt":"2021-03-10T08:41:54","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=27163"},"modified":"2021-10-29T18:18:29","modified_gmt":"2021-10-29T12:48:29","slug":"5-important-aspects-that-startups-in-india-cant-afford-to-ignore","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/5-important-aspects-that-startups-in-india-cant-afford-to-ignore\/","title":{"rendered":"5 Important Aspects that Startups in India Can\u2019t Afford to Ignore"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Startups in India often find themselves trying several tactics when it comes to addressing different requirements from time to time. While IT &amp; HR activities are taken care of by an internal team of dedicated employees, the same does not go with other departments. The third-party service provider often oversees other aspects.  Other organizations often assist them in focusing on core competency from firm registration to handling account activities and even filing GSTR. Most startups in India commence their business journey by overlooking the following aspects that hurt them drastically and hinder their growth. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/5-Important-Aspects-that-Startups-in-India-Can\u2019t-Afford-to-Ignore.ai_.png\" alt=\"5 Important Aspects that Startups in India\" class=\"wp-image-27211\" width=\"531\" height=\"468\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/5-Important-Aspects-that-Startups-in-India-Can\u2019t-Afford-to-Ignore.ai_.png 900w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/5-Important-Aspects-that-Startups-in-India-Can\u2019t-Afford-to-Ignore.ai_-300x264.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/5-Important-Aspects-that-Startups-in-India-Can\u2019t-Afford-to-Ignore.ai_-768x677.png 768w\" sizes=\"(max-width: 531px) 100vw, 531px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/5-important-aspects-that-startups-in-india-cant-afford-to-ignore\/#Adoption_of_Impractical_Business_Structure\" >Adoption of Impractical Business Structure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/5-important-aspects-that-startups-in-india-cant-afford-to-ignore\/#Mandatory_and_Optional_Business_Licensing\" >Mandatory and Optional Business Licensing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/5-important-aspects-that-startups-in-india-cant-afford-to-ignore\/#Getting_Agreements_Contracts_Done\" >Getting Agreements &amp; Contracts Done<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/5-important-aspects-that-startups-in-india-cant-afford-to-ignore\/#Work_Safety_Requirement_Minimum_Wages_for_Startups_in_India\" >Work Safety Requirement &amp; Minimum Wages for Startups\nin India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/5-important-aspects-that-startups-in-india-cant-afford-to-ignore\/#Protection_of_Intellectual_Property\" >Protection of Intellectual\nProperty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/5-important-aspects-that-startups-in-india-cant-afford-to-ignore\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Adoption_of_Impractical_Business_Structure\"><\/span>Adoption of Impractical Business Structure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We have seen businesses\ngrappling with selecting the right business structure that meet their long list\nof requisites. Each business structure has its pros and anomalies with a\ndifferent set of legal connotations involved. <\/p>\n\n\n\n<p>Startups in India can\nopt for the following legal structures and start their business journey within\nthe legal framework. You can register as a legal entity under the Companies\nAct. The following structure can be chosen by the startups in India:-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Private Limited Company<\/h3>\n\n\n\n<p>A Private Limited Company is a type of company regulated under the provision of the Company Act 2013. A minimum of 2 members is required to incorporate such a company. The liability of the members of a Privately-held entity is limited to the amount of share held by its shareholders.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">One Person Company Registration (OPC)<\/h3>\n\n\n\n<p>Just\nlike a private limited company, OPC is also regulated as per the provision of\nthe Company Act 2013. One Person Company means a company owned by a single\nperson. In legal terms, OPC refers to a company served by one shareholder as\nits member.&nbsp;<\/p>\n\n\n\n<p>Most <a href=\"https:\/\/corpbiz.io\/startup-india-registration\"><strong>startup India<\/strong><\/a> are conservative from an ownership standpoint as they seek complete ownership over their business operation.&nbsp; In view of this, OPC is a perfect business structure for such kind of startups.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Public Limited Company<\/h3>\n\n\n\n<p>A&nbsp;public limited company&nbsp;refers to a joint-stock company, and it is regulated as per the provision of the Companies Act, 2013. Unlike privately held entities, there is no limit on the number of members in the publically-held organization.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Limited Liability Partnership<\/h3>\n\n\n\n<p>A Limited Liability Partnership means an establishment where a minimum of two members are required, and there is no restriction on the maximum. The members serving such a business structure do not possess unlimited liability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Section 8 Company<\/h3>\n\n\n\n<p>A\nSection 8 company is primarily a non-profit establishment. Such companies serve\ncharitable &amp; not-for-profit purposes. It is identical to society and trust\nin which the profits are allocated for advocating the company\u2019s goals and no\ndividend payable to the shareholders or the company&#8217;s members.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sole Proprietorship<\/h3>\n\n\n\n<p>It is registered when\nthe business operation is handled by a single person and involves less\ncompliance. Though registered, it continues to serve as an informal structure\ninstead of a legal entity.&nbsp;Upcoming entrepreneurs and Startups in India\nare more inclined towards this business structure. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Partnership Firms<\/h3>\n\n\n\n<p>This business structure\nis driven by more than one person. There are three ways to do so; general\npartnership or limited liability partnership (LLP), where the latter act as\nbody corporate rendering all the legal rights. Select the right business form\ninvolves considering the type and size of your business and how you envisage\nits growth.&nbsp;<\/p>\n\n\n\n<p>Generally, a sole member\noften goes with the proprietorship or an OPC business structure due to ease of\noperation and less compliance.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mandatory_and_Optional_Business_Licensing\"><\/span>Mandatory and Optional Business Licensing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some businesses seek\ngovernment-based licenses to commence their journey\u2014for example, FSSAI\nlicensing for conducting food-related business. Startups in India require\nadopting cautious approach while meeting the licensing prerequisites to avert\nany contradiction with the legal houses in the future. It\u2019s impractical to\nsurvive in a business environment without proper licensing and permission.\nEnsure your startup has all the mandatory licenses at the disposal before\ninitiating the business operation.&nbsp;<\/p>\n\n\n\n<p>If possible, go for the\nexpert help to avail the pinpoint information for the same. Be precise with the\ndocumentation works as the margin of error here is next to negligible. One such\ndocument is the certificate of incorporation based on which other licenses can\nbe sought.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Getting_Agreements_Contracts_Done\"><\/span>Getting Agreements &amp; Contracts Done<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Such operational\ndependencies will lead to an agreement that entails working policies &amp;\nnorms for job profiles laid down by startups. An employment contract\nconsolidates work commitments, details regarding salaries, deliverables in\naddition to the ESOP details if offered. If you are about to step into the\nbusiness world, then getting clarity on aspects above &amp; having a contract\nwould help.<\/p>\n\n\n\n<p>Eventually, this will\nprevent the danger of uncertainty to help scale efficiently. Although vendor\nagreement does not stand compulsory for business, it is best to have those in\nplace too. This is to safeguard business-related transactions &amp; encourage\nlong-term synergies to walk in tandem with the symbiotic demand and supply\nrelationship.<\/p>\n\n\n\n<p>Also, there are trends among new firms these days wherein a shareholder and co-founder agreement is done. Having such agreements will add clarity to the management by distinguishing the business-specific roles of co-founders and others.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/documents-required-for-startup-india-registration-online\/\">Know the Complete Rundown of Documents Required For Startup India Registration<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Work_Safety_Requirement_Minimum_Wages_for_Startups_in_India\"><\/span>Work Safety Requirement &amp; Minimum Wages for Startups\nin India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong><em>Ministry of Labor and Employment<\/em><\/strong><sup><a href=\"https:\/\/labour.gov.in\/\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> has underpinned safety, health &amp; environment regulations for different establishment. If your company is engaged in hazardous substance production, or if workers are exposed to a specific chemical, then ensuring conformity with such standards is compulsory. Don\u2019t put your business in danger by overlooking such set standards.&nbsp;<\/p>\n\n\n\n<p>On the other hand, the\nPayment of Minimum Wage Act, 2005 talks about the minimum wage payment on\naccount of industry norms. Again, startups employing workers for an assortment\nof jobs must fulfill those criteria to keep in line with the compliances. This\nis because startups are accountable for its workforce&#8217;s health &amp; safety\nduring the time of operation.&nbsp;<\/p>\n\n\n\n<p>It is advisable to\nconduct a risk assessment that assists in pinpointing potential hazards &amp;\nmeasures to fight those.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Protection_of_Intellectual_Property\"><\/span>Protection of Intellectual\nProperty <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Intellectual properties\nare valuable assets for any organization. Startups must take relevant measures\nto keep them secured.&nbsp;The most common IP are:-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Patents<\/h3>\n\n\n\n<p>Patents safeguard\nproducts\/processes that are unique, inventive, and have industrial utility. For\ninstance, a computer hardware company must file a patent if they have invented\na groundbreaking system for cooling the motherboard.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Trademarks<\/h3>\n\n\n\n<p>Trademarks provide legal\nprotection to the brand name, sign, logo, etc. These assets are subjected to\ncounterfeiting owing to their substantial value in the market. Unlike a patent,\nTrademark is easy to get and provides continual protection by offering\nexclusive rights to the owner.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&nbsp;Copyrights&nbsp;<\/h3>\n\n\n\n<p>Copyrights are very\nimportant for startups that have businesses related to creative, artistic\nworks. A multimedia company must register the songs\/ movies it creates.<\/p>\n\n\n\n<p><strong><em>IP protection is essential for\nstartups in India due to the following reasons.&nbsp;<\/em><\/strong><\/p>\n\n\n\n<ul><li>It provides the startup with comprehensive protection against illegal entities and legit legal support that prevent others from misusing the brand.&nbsp;<\/li><li>It maximizes startup security by safeguarding it against the act of counterfeiting and preventing any duplicated version of the product from entering the market.&nbsp;<\/li><li>Can attract overseas investors &amp; clients intending to acquire your brand at a later stage. Also, licensing or assigning others to leverage your IP can result in higher profits.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Staying in compliance with government norms would keep you ahead of the curve and ensure your business&#8217;s seamless running. A prolonged commitment to meet the compliances can pave down the roadmap of success for your startups.&nbsp;&nbsp;Most startups in India often found themselves in a dilemma of comply with various requirements underpinned by the government authority. If you are about to start your business journey and confronting pre-launch issues then feel free to share your concerns with the <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz\u2019s<\/strong><\/a> associates.&nbsp;&nbsp;&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-of-startup-india-registration-in-india\/\">Benefits of Startup India Registration in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Startups in India often find themselves trying several tactics when it comes to addressing different requirements from time to time. While IT &amp; HR activities are taken care of by an internal team of dedicated employees, the same does not go with other departments. The third-party service provider often oversees other aspects. Other organizations often [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":27209,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[968],"tags":[1591],"acf":{"service_id":"250"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5171,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/27163"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=27163"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/27163\/revisions"}],"predecessor-version":[{"id":27212,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/27163\/revisions\/27212"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/27209"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=27163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=27163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=27163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}