How to Deal with Legal Requirements when setting up a Business

How to Deal with Legal Requirements When Setting up a Business

Legal issues of businesses in India vary according to the different business models. Though there can be various types of business models, we will be talking about starting up private limited companies as most people think of it first.  It is a challenging situation for any businessman to establish a business. One has to comply with all legal requirements in addition to promoting the just launched business in the market. The entrepreneurs willing to focus completely on their business set-up search for companies which can deal with legal procedures. They want the process to be hassle-free.

The first step of private limited company registration is to get approval for

  • Company name
  • Registered office address
  • At least 2 directors with their director identification numbers
  • Authorized capital of Rs. 1 lac
  • Article of Association
  • Digital signature certificates
  • Memorandum of Association

Once you have fulfilled all these requirements, an incorporation certificate is sent by post to the newly registered company.

The next step is to deal with the income tax related issues. In that respect, a private company has to obtain a permanent account number (PAN). PAN card online registration is possible. The company dealing with your legal matters will be able to help you in this matter. Apart from the PAN, you need to get tax deduction account number (TAN), tax identification number (TIN) and Value-added taxes (VAT).

When you are receiving money for selling your good and services, you need to comply with all tax liabilities. Along with the income tax, you need to pay the Goods and Services Tax (GST). Just like the income tax or other taxes, online GST return filing is possible. If you find difficulty in understanding how to fill the data online, your advisor may help you out.

This is just an outline on a few imperative legal requirements that a company requires at the outset as well as while functioning. Experienced accounting firm truly can help you to deal with every legal matter while you concentrate to make your business bigger.

 

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