Entrepreneurship is a type of work, where you set up your own business, service or start-up, invest your own capital and manage things yourself at the start or in a partnership. It is done in individual level, as is nowadays encouraged by governments all over the world for creative ideas. It is not a cake walk as it looks. It is very difficult, and needs a lot of skills and creativity to get your business or start-up working accordingly. an entrepreneur puts in a lot of resources and skills into the start-up so if not treated accordingly, it may fail miserably in the start, drenching away all the hard work as well the finance funded into it. Knowing about the law is our duty and obligation as a citizen. However, before opening up a business or start-up people hardly look at the laws related to it. But it is necessary to take a look at these laws, know what all laws will be applicable to your work and frame the plan accordingly. otherwise, later on legal complications may arise that will be an impediment to your business growth. Here are a few laws and tips related to them that need to be researched upon before starting a business.
1. Tax laws
There are different kinds of taxes that a citizen is expected to pay if the income or profit is above the threshold of the tax mentioned. Just like income tax, certain other taxes like excise duty, custom duty, cess and other such taxes are to be paid when you own a business. Before opening up a business, research on the types of taxes you will need to pay, and how much will it cost you. Research on the profits and the taxes on it so that you make a wise decision. Also, if you avoid paying such taxes, you can face legal actions by the authorities. So you need to know about these tax laws thoroughly. You can consult a tax law specialist lawyer before commencing with the business. He will tell you about all the rules and regulations regarding tax laws in India.
2. Intellectual property law
Intellectual property laws protect you from the invasion of your privacy by illegal dealers of your authorized creations. If you build up a software, a unique product or any such thing which is your creation, then these laws prevent other people from benefitting from it without your permission. They are meant to safeguard your property in business. You should know about your rights and obligations related to these laws, as they are always beneficial to the entrepreneurs and carry a huge advantage if known and used properly.
3. Contract Laws
contract law is the field, where essentials, rules and regulations and conditions of forming a contract between two or more people are present. They also contain punishments and liabilities in case the contract is breached. Contracts form an essential part in business transactions. There are contracts between the business and other people involved in its working like dealers, customers, financers etc. to know and formulate contracts in a right manner, you should read the contract laws so that you understand what you are signing, and also all the obligations and liabilities arising out of it. On the other hand, it will also help you know about your rights in case any other person or party breaches the contract or does not full fill it accordingly as mentioned in the terms. You can get compensation, relief and other such rights from such breaches.
4. Labour Laws
This is a very important area to work on if you are opening up a business which involves labour. It contains all the rights of labours, their working conditions, their minimum wages and also the penalties that can be imposed on you if you do not follow them. These are very stringent laws. It also allows for a arbitration mechanism in case any dispute is arisen between the employer and the labours. So, make yourself thoroughly considerable regarding these laws, as they impose many liabilities on the employer, failing which could cost a lot more than just money. They also contain rights of an employer, and how he can make the labours work, in short it is very useful if the business you are starting involves labours.
5. Technology Laws
Technology laws are new in India. they have been framed recently, to flow the the advent of latest technology. If your business deals with technology, or uses technology to produce the services or products, then you must familiarize yourself with these technology laws as they contain the dos and don’ts in a business. They tell as to how the technology obtained can be used, and how it should not be used. They also contain the fines and punishments in case there is any misuse of technology. It can be criminal or civil depending upon the misuse. Other than that, they also familiarize you with certain rules regarding safeguarding your business from technology. So if you want to keep your business safe, then these laws must surely be read before commencing it. They will help you get regular with the rules and regulations so that you do not get into trouble by even remotely misusing anything in your business.
These are the few laws mentioned above that need to be kept in mind before you open up a business. As mentioned earlier, knowing the law of the land is an obligation on every citizen, and there is no excuse present in the court that you were not familiar with them. So, read and research about these laws so that you are well versed with the rights and duties entailed on to you, before you start any business in your city. Even for international business, these laws prove very helpful as they safeguard you from mishaps that occur during the course.