Team Legistify | Legistify

Team Legistify
Answered on 28 Sep 2018

To oversimplify - Currently you can't raise funds in exchange for equity if you're a pvt company by offering equity to the general public. Nor by way of loans from individuals who are not your shareholders. But wait for a little while,Sebi's crowdfunding regulations are in the pipeline and those might help people in situations similar to yours. Read More

Posted on 17 Mar 2016 | 1 Answer

I want to start a start-up for making fuel from plastic waste. Can I start is this?Read More

Posted on 16 Feb 2020 | No Answers Yet

I am starting a startup. What would be the process and costs associated with the following: 1 Non-Disclosure Agreement 2 Trademark Registration and Copyright 3 Startup Consultation 4 Raising Seed Funding 5 Employee agreement 6 Co-founders agreement 7 Private Limited Company RegistrationRead More

Posted on 06 Feb 2020 | No Answers Yet

We have developed plant-based (eco-friendly/natural) cleaning products (floor cleaners, dish wash soap, laundry detergent etc) and are ready to launch the products in the market. We are a sole proprietorship registered in Pune. The manufacturing is happening through a facility in Pune which is FDA approved. We are unsure what regulations or licenses are required to run a business in this segment which also extends to knowing what information should be going on label/packaging, if any, for these products.Read More

Posted on 29 Jan 2020 | No Answers Yet

Shagun Srivastava | Legistify

Shagun Srivastava
Answered on 31 Jan 2020

To start an online business which shall have transactional revenue, the following registration is required: 1. Company or LLP Registration While starting an online venture it good to have a private company or LLP to have limited liability protection and improve the ease of doing business. Having a company or LLP would ensure that the opening of bank accounts in the name of the business or obtaining a VAT/Service tax registration are easy and fast. Almost all marketplaces allow Proprietorships and Partnership firms to sell on their website. However, there would be no limited liability protection in case of litigation. Hence, it is best to start selling with an LLP or Private Limited Company. However, Most people decide to open a private company to substantiate any online activity and this article would cover that aspect alone. To incorporate a private limited company one must approve its name, registered office address, have at least 2 directors with director identification numbers (DINs), must have a minimum authorized capital of Rs.1 Lakh, memorandum of association (MOA) and articles of association (AOA), digital signature certificates (DSCs) wherever applicable, etc. Once these conditions and requirements are fulfilled, a certificate of incorporation is sent by post to the registered office of the newly registered company. The private limited company is also required to comply with income tax related compliances. These include obtaining permanent account number (PAN), tax deduction account number (TAN), GST registration and obtaining of tax identification number (TIN), professional tax if applicable, service tax, etc. In case the promoters wish to start a proprietary online business, then it is best to start with a company, as it is the only type of entity that can allow for angel funding or equity funding – a must for successful startup ventures. It is very easy to start and only requires you to open a (current) bank account. Filing personal income tax returns and getting intellectual property rights protection is necessary. 2. GST Registration GST registration is a must if starting a proprietary transaction based online website. GST registration is required for anyone selling goods or products in India. 3. Bank Account Once the Company or LLP is incorporated, a bank account can easily be opened in the name of the business by contacting a Bank. In the case of a Proprietorship firm, VAT registration must first be obtained to open a bank account in the name of the business. Opening of a bank account is essential to list on an eCommerce marketplace or obtain a payment gateway for a proprietary eCommerce website. 3. Payment Gateway A payment gateway would be required for a proprietary online website to process customer payments. Payment gateway providers allow for the website to accept credit card, debit card, net banking, internet banking payments from multiple banks and credit card companies. Therefore, one payment gateway is sufficient to accept many forms of online payments. Once, a payment is received from the customer, the payment is sent to the bank account of the business by the payment gateway providers in one or two business days. In the case of selling through online marketplaces, the marketplace would accept the payment through their payment gateway and credit the money to the bank account of the seller directly. Hence, a payment gateway is not required and only a bank account is necessary. 4. Legal Documents While selling online, it is important to protect the business and the promoters of the business through proper legal documentation and contracts for your business. The terms and conditions, disclaimer and privacy policy would have to be drafted by the business based on the nature of its activities and products sold online. If the business sells through online marketplaces, then the legal document or seller’s agreement is provided by the marketplace and the seller must abide by the seller's agreement. It is important for any business to read the sellers agreements before agreeing to the agreement. 5. Adherence to cyber law crimes All online businesses must ensure cyber law due diligence in India. This is more so when the cyber law due diligence for companies in India has become very stringent and foreign companies and websites are frequently prosecuted in India for non-exercise of cyber due diligence. Furthermore, e-commerce websites in India must ensure privacy protection, data protection, data security, cybersecurity, confidentiality maintenance, etc as well. Such adherence also needs to be noticed with respect to payment gateways that the businesses opt for. 6. Compliance with other laws The legal requirements for undertaking an online business in India also involve compliance with other laws like contract law, Indian penal code, etc. Further, online shopping in India also involves compliance with the banking and financial norms applicable in India. For instance, take the example of PayPal in this regard. If PayPal has to allow online payments receipt and disbursements for its existing or proposed e-commerce activities, it has to take a license from Reserve Bank of India (RBI) in this regard. Further, cyber due diligence for Paypal and other online payment transferors in India is also required to be observed. In certain cases, compliance with labour laws is also required. For instance, the Shops and Establishment Act is a legislation implemented by various States in India. The Act lays down mutual statutory obligations and rights of employers and employees. Registration of shop/establishment is mandatory within 30 days of commencement of work. Other workmen and labour-related legislations cover areas like employees' provident fund, employees state insurance, etc. It is recommended that all online business entrepreneurs and owners must do proper techno legal due diligence before opening any website. The Internet intermediary liability in India may be frequently invoked against e-commerce websites in India. The Information Technology (Intermediary Guidelines) Rules 2011 prescribes stringent liabilities for e-commerce websites in India. Certain pieces of advice to be kept in mind to avoid any legal hassles: Taxes Whether money is received through a payment gateway or a brick and mortar payment system like Cash on Delivery, compliance with any and all tax liabilities is needed. Read More

Posted on 26 Jan 2020 | 1 Answer

Ayaskanta Parida | Legistify

Ayaskanta Parida
Answered on 20 Jan 2020

You may have to be very specific as to the difference between the two. The DGCA might bring paramotor under 'powered glider'. Hire a startup lawyer would seek clarification from the DGCA and the court in this matter.Read More

Posted on 04 Jan 2020 | 1 Answer

Arshi Noor | Legistify

Arshi Noor
Answered on 28 Nov 2019

For starting a Car Rental Business in India, you have to create the best business plan for the car rental company. There are many types of car rental business plan like you can start a Rental Fleet Business (owned the Fleet) or you can act as Cab Aggregators like Ola or Uber even you can attach your Car with Ola Cabs & start the business from Small investment. Even India’s leading Cab Aggregators like Ola or Meru Cabs started from the rental fleet business and on a later stage, they change their business model into an app-based cab aggregation service (similar to Uber) and the rest is history. A Car Rental Business in India has following revenus lines – Fleet Management via Tele Sales Percentage Commission from Trips being served through its platform (Trip Based Commissions) Corporate Tie-Ups / Event Tie-Ups Vehicle On-Boarding Fee In-Cab Advertisements Fleet Leasing (To Drivers) Car Type Peak Time Charges In a best car rental business plan you have to include target market, your start-up investment, supplies. How you access the market considering the demand, projected annual revenues and expenses.  Consult a startup lawyer in India to start your business.Read More

Posted on 27 Nov 2019 | 1 Answer

Arshi Noor | Legistify

Arshi Noor
Answered on 04 Jan 2020

You need to consult a good startup lawyer in India to know the legality of such a business to share third-party data.Read More

Posted on 20 Nov 2019 | 1 Answer

Team Legistify | Legistify

Team Legistify
Answered on 27 Nov 2019

You need only the basic registrations to start a free listings website. Consult a startup lawyer in India to get started.Read More

Posted on 20 Nov 2019 | 1 Answer

Karishma Pandit | Legistify

Karishma Pandit
Answered on 14 Nov 2019

To start a business registration:- 1. Select and Register Your Business Name. 2. Find a Business Location. 3. Start a Home-based Business. 4. Select Your Business Legal Type. 5. Apply for Your Tax ID Number (Employer ID). 6. Apply to Your State for a Sales Tax Permit (for Taxable Items, Services). 7. Get a Business Checking Account. 8. Obtain Local Licenses and Permits.Read More

Posted on 13 Nov 2019 | 1 Answer