To fulfill various criteria from time to time, startups frequently find themselves reinventing the wheel. While IT and Recruiting are handled by a dedicated in-house team, often with other departments, that is not the case. We finally look after all their enforcement as we are in the skilled service business. We help them concentrate on their organization’s core aspects, from business registration to holding account books and even filing GSTR.

Based on my experience, startups seem to neglect a variety of items when they launch.

1. Failing to Choose the Right Business Structure

I have experienced companies struggling to choose the correct business framework for their needs. Each business arrangement has its advantages and prohibitions that have different legal consequences.

In India, there are mainly three market structures that can be registered.

Company Registration: You can choose to register a business as a body corporate under the Companies Act. It can be. 

– Private Limited Company Registration

– One Person Company Registration 

– Limited Liability Company Registration in India

– Registering a Public Company

– One Person Company Registration

I. Sole Proprietorship: It is registered if the company belongs to one person and has the least conformity. It is a legal entity and remains an informal system, although registered.

II. Partnership: It is registered if the company belongs to one person and has the least conformity. While it is licensed, it is a legal entity and maintains an informal framework.

The structure selection includes considering your company size and form and the way you expect to develop. The correct structure depends on your business’ form and size and your expected development. A single member will usually choose a property company or an OPC. However, some founders rely on family members or associates to fulfill the structural criteria to take advantage of other systems.

2. Getting Contracts and Agreements Done

These organizational dependencies can lead to an arrangement concerning startup working policies and labor conditions.

A contract of employment involves employment duties, performance and pay specifications, and the specifics of the ESOP if provided. If you start, clarification will be obtained, and a contract will help. This will ultimately and ambiguity costs to scale up to more efficiently.

Even if the seller agreement is not compulsory, it is better to have it in effect. This aims to secure business transactions and foster long-term synergies to match the symbiotic relationship between supply and demand.

Also, the startups are currently witnessing a trend in which co-founders and shareholders agree. These agreements will help to restrict the positions and obligations of the co-founders and others.

3. Business Licensing

Some firms need the authorization to commence as part of compulsory enforcement. For instance, FSSAI food business licensing. Startups have to be vigilant when complying with licensing regulations because they can place the company in great danger of facing legal action.

Ensure that your startup has all required and even optional licenses or registrations, like SSI Registration in India, to increase funding opportunities under MSME.

A perfect way out is to contact business experts and inquire if your startup needs a license. Make sure records are ready and apply. One essential document is the company incorporation certificate that can be used to seek the appropriate permits.

4. Work safety and Minimum Wages

The Labor and Employment Ministry has identified some protection, health, and the environment in the workplace. If your startup addresses toxic substances, or if employees are exposed to such chemicals or air, it is compulsory to comply with these requirements. Do not jeopardize your company by avoiding certain expectations.

The Minimum Wage Act, 2005, lays down the minimum wage payment in compliance with the industry standards. Again, startups working for different jobs must follow this requirement to stay compliant since a startup is responsible for its workers’ health and safety during their jobs.

A risk evaluation is recommended, which helps identify possible threats and steps to combat them.

5. Intellectual Property Protection

IPs are one of the most precious assets of any company. In particular, startups need to take reasonable measures to protect them.

The most popular IPs are:

Patents

Patents cover fresh, innovative, and useful products/processes. For example, if a software company has a special and new computer program, it must apply for a patent.

Trademarks 

Marks protect the name of your company, logo, signs/slogans and so on. For example, in the absence of a well-known apple logo, businesses such as Apple would have been unable to establish a trillion-dollar corporation.

Copyrights 

In startups that have businesses related to creative/artistic works, copyright is very significant. The songs/films produced by a multimedia company must be registered.

IP protection enables.

– Provision of full protection against infringements to startups and legal assistance prohibits people from using the brand.

– Maximize startup protection by guarding against fraud and avoiding entry into the market of any counterfeit goods.

– Buyers and consumers ready to purchase the brand later. Also, you will benefit from allocating or licensing others to use your IP.

Conclusion

There are also other aspects startups cannot forget when compliant. Keeping an enforcement partner on board is the perfect way to start doing business. We do what we have to do, from business registration, monitoring the company’s day-to-day accounts to monthly enforcement. The key is to rid yourself of this responsibility and conduct business without reinventing the entirely new department’s wheel.