Do You Know What Documents need to start Business in India The Startup India was launched on 16 January 2016. Under the leadership of our prime minister, Mr Narendra Modi, the Indian government has initiated and promoted it. The overall motive of Startup India is to provide a pathway for products and services to make them resourceful and innovative. With this scheme, a considerable amount of growth is anticipated in the employment rate of India, and the list of Documents Required for Startup Registration has been updated accordingly. What Documents need to start Business in India
Startups now can match forward to a better future of their business equipped with growth, innovation, and high-end technology. Across the board, the development of such startups of India is now in safe hands empowering them, if they avail of the Startup India Scheme.
If your startup lies under any of the above categories, you are required to check your eligibility for applying to the Startup India Scheme. All you should know about the Startup India Initiative by the government of India, and the Documents required for startup registration are covered in this article. What Documents need to start Business in India
Essential Legal Documents for Startups
With the drive to manifest business success, Startups often indulge themselves in legal troubles. Therefore, be ready with the list of Documents Required For Startup Registration mentioned below to avoid such legal matters.
1. Trademark
Trademarks hold the solid power to strengthen your business. Registering for a trademark and choosing a specific brand name allows you to reach your targeted audiences. However, the only struggle you could face here is from the business having a similar-sounding brand name. What Documents need to start Business in India It could trigger them and get you into legal obligations, although it drives the attention of many people.
2. Articles of Association/Incorporation
You, as a startup, are putting yourself under considerable risk of getting pressed by the burden of legal liabilities and never-ending income tax bills by establishing only a sole proprietorship. Startup businesses often fail to understand the vitality of putting proper business structure in place. If these startups neglect the formation of a separate legal entity for their existing startups, What Documents need to start Business in India the company’s founders put themselves under a significant threat. In the extreme case, they might end up losing their home, property, and all of their savings to date. The best solution to overcome this is to file up the Internal Revenue Service. It will save you from extensive tax obligations & other fees.
3. A Non-Disclosure Agreement (NDA)
NDA and other documents meant for startups ensure that all the confidential information between you and other parties like investors, stakeholders, third parties, etc., is secure by all ends. The role played by the NDA is quintessential if you’re dealing with potential clients, investors, and even your employees. NDA works well by providing a shield to the founder of the startup and its employees. It does so by protecting the intellectual rights of the company and its ideas.
An NDA letter determines the following things-
- Specifying time range meant for disclosing the confidential information
- Ways to handle the personal information
- Employee Contracts
- Employee Offer Letters
- Maintaining Confidentiality to the decided time
- Items included in the Confidential Information
- Owner’s Confidential Information
4. Employee Contracts and Offer Letters
The success of any business is determined by the A-level team and how well their multilevel minds are implemented. The offer letters and formal employment contracts put you and your employees on a safer side. So, if any grievance arises at a later period, this piece of document will be helpful to express your points better. It also sounds professional and makes employees know their worth and value in the company.
Things below are mentioned in the letter-
- Preset Commitments and targets
- Structure determining the reporting to the office.
- Determine in-depth Terms and conditions of employment with an employee. It includes roles, responsibilities, compensation own, predefined working hours, notice, and termination criteria.
- IP ownership of work
- A clear picture of internal policies, including timings, leaves, vacations, dressing sense, expected behaviour, etc.
- Expectations out of an employee
- Share Granting
5. Shareholder’s Agreement
The role of the Shareholder’s Agreement comes into the picture when your startup business is all set to proceed forward with the direction involving the investments made by the other firms or individual investors. It plays an essential role in defining partnerships between the multiple shareholders of the company. The value of the shareholder agreement becomes zero if the startup’s founder plans to leave the company. Now the question arises about the liabilities and overall rights of these shareholders. At this level, the shareholder agreement determines everything as a clear picture to the investors and the startup company itself. What Documents need to start Business in India
6. Bylaws
The workplace requires a particular set of rules and regulations to maintain the decorum of the corporate place. Bylaws define such regulations and standards. In addition, bylaws make sure that each startup is working correctly. The bylaws here help you to run everything smoothly. It also allows each member of the company to voice themselves, opinions, and creative ideas whenever required. The best part of having a bylaws document is that it empowers individuals by providing voting rights. Such rights are helpful to choose the board members, leaders, and other supreme-level individuals.
7. Intellectual Property Assignment Agreements
Unlike other startups, you should look after securing your Intellectual Property Rights. Getting complete and detailed ownership of your Intellectual Property becomes of primary importance. The portfolio assessment of the startup firm plays a significant role in attracting the right set of investors. Having full ownership of electoral Property Rights is going to create a huge impact here.
The startups consider Two significant types of Intellectual Property agreements-
Intellectual Property assignment agreement
It tells whether or not your startup is capable enough of attracting beneficial investments from potential investors.
Technological Assignment Agreement
It is formed between startup and shareholder. Here, shareholders assign their IP to the company. It’s applicable in the case of employees creating innovative products.
8. Founders Agreement
The founder’s agreement helps to cope with the unseen future fights between the founding parties involved in the startup businesses! Signing such an agreement will define the relationship between all the company founders and specific terms and conditions. Moreover, the clash resolving clauses are also present in such documents. Forming certain boundaries and stating the functional coordination between different founding members is defined under this piece of paper. It will be highly effective to look back on this document to validate the clashes suspected to happen in the future. What Documents need to start Business in India
9. Terms and Condition
Maintaining the website of your products or services is the core part of any business. It increases your reach to potential buyers and saves you from unseen clashes. Websites have the terms and conditions of use & clearly state the bond between a buyer and the company. It says all the limitations of liabilities, privacy policies, disclosures, jurisdiction for putting forward the clashes, copyright claims protection, and use of products from the website.
10. Business Plan/Pitch Deck
Putting the right set of the business forward by making a wholly analyzed business plan is rarely seen in startups! Due to this, they are on the verge of facing failure at some point soon in time. Apart from not stating the thoroughly examined and predefined business plan, the startups ignore ‘private limited incorporation’ and setting ‘sole ownership’ of startup businesses. Therefore, it can lead to losses and high-income tax returns in the long term.
