Usually an entrepreneur doesn’t know much about the laws and legal formalities involved for doing business in India. There are few important laws that you need to know before opening your startup 

  • Business Licenses- This license is a legal document that grants you right to operate business in your city. The fees and other requirements differ in every city/state.  You need to submit following documents with your application:-
    • Documentary proof of legal occupancy of the unit , if on lease the lease deed
    • Documentary proof of establishment of trade w.e.f. the date
    • Site plan
    • Key Plan
    • Indemnity Bond for Rs.100/-
    • Affidavit for Rs.10/-
    • NOC from land-owning agency
    • Deed of constitution, if any ( in case of partnership you have to submit partnership deed and in case of company you have to submit MOA, AOA and other legal documents.

  • Family and Medical Leave Act-   Indian laws have stringent provisions for safety of employees.   So, it is your duty to take care of your employee. 


  • Worker’s compensation- You opened up a startup and you employee people in it. You have various duties towards them that you need to follow as mentioned in labor laws of country. Although in Startup India Scheme, government exempts startups for strictly following the labor laws. But basic things like workmen’s compensation, working hour, suitable work environment needs to be taken care of.

  • Truth in advertising and marketing – To make people aware about the product your business is offering you will need to advertise and market that product for which you will follow marketing and advertising strategies. But in addition to that you have to follow certain standards as provided by Advertising Standards Council of India (ASCI). It provides for honest representations and claims to be made in advertisement. Also, certain guidelines have to followed regarding advertisement of few products like alcohol.


  •  Data securityYou have to follow some data security rules to maintain confidentiality of information received from your customers. For that you have to follow few guidelines given under IT Act, 2000. In case you don’t take reasonable measures for data security you can be charged or penalized.

  • Protect your intellectual property- You have a unique business idea to start a business and you implement such idea in any form like you develop a new product and sell it. This can be protected under patent act if your product is new and unique. Also, to identify your business you can obtain trademark. 

  • Legitimate book keeping- The books of accounts of every company which is registered is audited every year as per Companies Act, 1956. Company law provides that you have to make true and full disclosure regarding the information in your books of accounts. In case of any discrepancy, you can be heavily penalized.