Team Legistify | Legistify

Team Legistify
Answered on 31 Mar 2020

It is advised to consult the best startup lawyers in India to know the complete process and formalities involved in starting such a business.Read More

Posted on 16 Feb 2020 | 1 Answer

Team Legistify | Legistify

Team Legistify
Answered on 22 Mar 2020

The process to start a new business in India requires different licenses and permits. I advise you to consult our top startup lawyers in India to get all your startup registration requirements fulfilled.Read More

Posted on 06 Feb 2020 | 1 Answer

Team Legistify | Legistify

Team Legistify
Answered on 15 Mar 2020

Apart from the basic business registration, you have to Apply for the SSI Unit License for the Government Subsidiary and other small business benefits. You will need to apply for ‘Consent to Establish’ and ‘Consent to Operate’ both from the Pollution Control Board. For quality control, you need to have BIS registration and ISO certification.Read More

Posted on 29 Jan 2020 | 1 Answer

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

Team Legistify | Legistify

Team Legistify
Answered on 12 Feb 2019

You can add a new co-founder to your company amending your old co-founders agreement and adding an addendum to include the provisions to add a new co-founder, his rights, position in the company, salary drawn and shares to be transferred to him, his duration as a co-founder, etc. You can consult a startup lawyer in India to get your co-founders agreement amended.Read More

Posted on 12 Feb 2019 | 2 Answers

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

Team Legistify | Legistify

Team Legistify
Answered on 20 Jan 2020

I suggest you consult a startup lawyer in India to get the required help for structuring your business and getting all the licenses and permits.Read More

Posted on 05 Sep 2019 | 1 Answer

Team Legistify | Legistify

Team Legistify
Answered on 06 Jan 2020

Apart from the basic business registration such as company registration, GST registration, etc. builders need to obtain a RERA registration as well now. Consult a property lawyer in India who can help you with all the legal formalities and registrations to start a construction business.Read More

Posted on 23 Jul 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 10 Dec 2019

The post-incorporation requirements of a marketplace startup include the Annual ROC compliance requirements such as: Appointment of Auditor. Annual General Meeting Annual Return Filing Financial Statement Report ITR Filing Read More

Posted on 08 Aug 2019 | 1 Answer