Before venturing into any business, it is always advisable to know on the below pointers
1)Business Structure: formation of business entity like proprietorship concern, partnership, limited liability partnership, private limited, limited company. Choose which is more appropriate to you and your business type.
2)Founders Agreement: This agreement acts as guide to the founders and co- founders and protects the interests of promoters. Defines roles and responsibilities of each. Helps in the division of profits and losses. Addresses the concerns of shareholding. But well designed and drafted founders’ agreement is indispensable.
3)Business Licenses – Based on your business type obtain the applicable license/s before starting business.
4)Know the applicable laws & Comply: It is must for every business to adhere to laws and abide by the laws in true to spirit.
5)Protect IP: Identifying and protecting IP from the day one of business is helpful
6)Contract Management: Robust contract management system and not only signing the contract supports business the growth and also helps in relationship building with the vendors as well as customers.
7)Insurance: To protect the business against the risks role of insurance is crucial
8)Taxes: Registering for the taxes and paying the taxes along with the knowing the applicable tax structure is required.
9)Privacy Protection: It is crucial to safeguard the privacy of individuals and adopt the security measures not to violate privacy.
10)Labor Laws: Compliance of labor laws and having comprehensive compliance system in this regard is regard to avoid day to day operations of business as well as penalties
Ignoring the legal side of the business will have serious repercussions on the business-like penalty, loss of credibility, damage to reputation.
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* Write up by Team Purple Pursuits, for more details you can reach to us [email protected]
