{"id":294,"date":"2018-02-09T07:54:24","date_gmt":"2018-02-09T07:54:24","guid":{"rendered":"https:\/\/www.unispacebc.com\/blog\/?p=294"},"modified":"2024-02-06T06:53:43","modified_gmt":"2024-02-06T06:53:43","slug":"compliance-essentials-indian-start-ups","status":"publish","type":"post","link":"https:\/\/www.unispacebc.com\/blog\/compliance-essentials-indian-start-ups\/","title":{"rendered":"Compliance Essentials for Indian Start-ups"},"content":{"rendered":"

For the past few years, Start-ups<\/a> have been the \u2018flavor of the season<\/em><\/strong>\u2019 in Indian Market. The years from 2007 to 2015 saw the rise of many homegrown entrepreneurs, making their mark in the international start-up ecosystem. With statistically backed predictions promising India to be one of the largest economies after China and the USA in the coming decades, to investors, India is a booming and UN-exploited consumer-driven market with an exponential growth graph. Further, with multiple proactive initiatives by the Indian government, entrepreneurs (start-ups, eminently!) are sure to thrive and prosper.<\/p>\n

Compliance issues are mandatory and tricky to maintain. The World Bank’s “Ease of Doing Business 2018” report discusses the challenges that small to midsized businesses face. It highlights that businesses following rules are like rock stars. They call them “compliant businesses.” The business compliance regulations in India need to include permission for location registration. They also need permission for construction and electricity. They should also cover infrastructure and cross-location dealings. This includes enforcing and maintaining contracts, labor regulations, taxation, and investment. The norms of “Companies Act 2013” track these regulations in India. We amended them as ‘New Companies Act 2017’. There are countless parameters for a complete complaint. But a start-up must follow the following compliance issues to grow into a successful business:.<\/span><\/p>\n

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Revenue and Tax norms<\/b> Though critical to understand, it is a mandate to maintain taxation and Goods and Service Tax (GST) policies both on a national and state level. Yet, taxpayers can file and save GST invoices on the GST website. For tax compliance, you must register with GSTN. You must also link your Aadhar to it. You must also link your Permanent Account Number (PAN) to it. You must also link your Tax Collection and Deduction Account Number (TAN) to it. Furthermore, businesses must enroll for Goods and Services Tax (GST). They must do so when their annual turnover surpasses either INR 20 lakh or INR 40 lakh. It depends on the applicable threshold.<\/span><\/p>\n

You must register your business as an LLP, PVT, OPC, or corporation with the Registrar of Companies. The type of business determines which registration is required. The vendors and customers you engage with determine your enterprise’s registration category.<\/span><\/p>\n

Well-documented Service Level Agreement (SLA)<\/b> \u2013 To avoid legal issues, you must have a well-written contract with each vendor and client. These SLAs must also follow the New Companies Act. They must include the time frame and guidelines for each contract.<\/span><\/p>\n

Compliance with Employment and Labor Laws<\/b> \u2013 The Indian government sets up norms safeguarding employees\u2019 interests. So a business must ensure<\/span><\/p>\n