Kerala is considered as one of the major start-up hubs in India. Every day more and more entrepreneurs want to start their business in Kerala. Today, there is a supportive environment in Kerala for those who have great ideas and want to start something new. Many start-ups and businesses are being promoted in Kerala as per several state and central government policies. But new entrepreneurs need to be aware of the legal steps required to start a business.
When you are planning to start a start-up, you should also plan its registration. Your successful business can be registered under Startup India or Startup Kerala.
Legal Steps to Start a Business
1.Understand the structure of your business
You need to know what your business is. All businesses have legal requirements and restrictions. So it is essential to understand the business structure before starting the business.
2.Choose a business.
If you want to start a business in Kerala, you should know what kind of business you are going to start.
- Limited Liability Partnership (LLP)
- Private Limited
- The Public Limited
- Sole proprietorship
- Individual company (OPC)
3.Apply for a business license
A business license is a must. But the applicable license and rates may vary according to the nature of each company. Business licenses play a vital role in running a business in India. One of the most common licenses that apply to almost all companies is the Shop and Establishment Act.
4.Understand the tax laws.
Almost all businesses are taxed. There are several types of taxes, including state and central taxes. For some businesses, local taxes also apply. Taxes also vary according to different companies and areas of operation.
5.To be compliant with labour laws
Almost all companies, regardless of whether they are large or small, must comply with labor laws. For example, minimum wages and PF payments. Consult an attorney for legal advice. The Payment of Gratuity Act, 1972 and the Trade Units Act, 1926 are labour laws.
Company Registration
As per the Companies Act of India, your company needs to be registered in Kerala. If you want to start a private limited company or limited liability partnership (LLP), you need at least two partners. A sole proprietorship is a company owned by only one person. Even if you are starting an online business, you need to proceed with the legal steps to start an online business.
Setting up a small private enterprise can be very expensive. When registering a business start-up in India, it is necessary to contact a chartered accountant. A government fee must be paid at the time of registration. For the registration process, at least 20000 rupees will have to be spent. You must also file a tax return each year. If you want to do business abroad, you need a certificate of registration.
Registering before you start your business will give you a lot of benefits. This includes support from government schemes and easy funding.
