Mistakes that a start-up should avoid

A booming out-pour of Startups in Bharat is that the recent trendsetter. Recently, we've witnessed several low and status Start-Ups landing up within the Court of law fighting legal battles and sabotaging their name in public. so as to avoid such mistakes, here square measure “8 fast tips” that a Start-Up should do to avoid such ugly legal battles.

1. TO HAVE A STRONG LEGALLY BINDING AGREEMENT: One of the key issues that a Startup ought to look at is that the Founders’ Agreement. One ought to in an exceedingly means think about the Founders’ Agreement as a variety of “pre-nuptial agreement”. It ought to be clear, comprehensive, unambiguous agreement between the Founders of the Start-Up so as to chop down the probabilities of legal proceeding.

2. TO ABIDE WITH COMPLIANCES: A productive Start-Up ought to have an honest, wakeful and knowledgeable team of Advocates, Company Secretaries and leased Accountants so as to fits all the Legal and Government compliances, to avoid legal proceeding by the govt, Income Tax, ED, EOW, etc.

3. TO HAVE A ROBUST CUSTOMER REDRESSAL SYSTEM Treat your Consumers/customers with utmost importance and care by providing them smart services/products. this could decrease the probabilities of the consumer/customer to approach the buyer Forum for redressal.

4. TO MAKE TIMELY PAYMENTS TO VENDORS: One ought to confirm you pay your vendors on time failing that the seller would choose and approach the Court of Law for recovery of debts.

5. TO HAVE SECURE IP(Intellectual Property) POLICY: All the holding like Copyright, Trade Mark, Designs, Patents ought to be registered and may be specifically registered within the name of the Company/Founders and not on the name of the worker.

6. LACK OF EMPLOYEE DOCUMENTATION: Make sure that the documentation with the workers square measure done properly. Business Start-Ups typically encounter issues once they don't maintain adequate employment documentation. Consequently, Start-Ups ought to prepare a nucleus of employment documents to be signed by most, if not all, staff like staff enchiridion, supply letter, counselling, Non – speech act Agreement etc.

7. NOT HAVING A GOOD TERMS OF USE AGREEMENT AND PRIVACY POLICY FOR YOUR WEBSITE/MOBILE APP: A Terms of Use Agreement sets forth the terms and conditions for folks exploitation your Website/Mobile App. Your Privacy Policy could be a legal statement on your website/mobile app. setting forth what you may do with the private information collected from users and customers/consumers of the site/mobile app., and the way such information could also be used, sold, or discharged to 3rd parties.

8. NOT HAVING THE CORRECT LEGAL COUNSEL: In a misguided effort to avoid wasting on expenses, Start-up businesses typically rent inexperienced legal counsel. instead of disbursement the cash to rent competent legal counsel, founders typically rent lawyers WHO square measure friends, relatives or others WHO supply steep fee discounts. In doing therefore, the founders deny themselves the recommendation of tough legal counsel WHO will facilitate the founders in avoiding several legal issues.

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Income Tax Saving Tips

Recommended ways that of saving taxes beneath Sec 80C & 80D
1. Make investment of Rs one.5 large integer beneath Sec 80C to cut back your ratable financial gain
2. Buy Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical payment beneath Section 80D
3. Claim deduction upto Rs fifty,000 on equity credit line Interest beneath Section 80EE

Investment choices beneath Sec 80C
The most in style tax-saving choices offered to people and HUFs in India area unit beneath Section 80C of the tax Act. Section 80C includes numerous investments and expenses you'll be able to claim deductions on – up to the limit of Rs. 1.5 large integer during a twelvemonth.

Other Tax Saving choices on the far side Sec 80C
Apart from the 80C deductions, there area unit numerous deductions beneath Section eighty you'll be able to use to avoid wasting on tax. Tax edges on insurance premiums and residential loan interest area unit many.
1. Get Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical payment
2. Claim deduction upto Rs fifty,000 on equity credit line interest beneath Section 80EE
3. A equity credit line would conjointly assist you in reducing your ratable financial gain because the principal portion of equity credit line is claimed beneath Section 80C upto Rs one.5 large integer and also the interest portion is claimed as a deduction from financial gain from house property

How to arrange your tax-saving investments for the year
The best time to begin coming up with your tax-saving investments is at the start of the twelvemonth. Most taxpayers procrastinate until the half-moon of the year, leading to hurried choices. Instead, if you propose at the beginning of the year, your investments will compound and assist you attain semipermanent goals. Remember, tax-saving ought to be a further perk and not a goal in itself.

Use the subsequent tips that could arrange your tax-saving for the year:
1. Check the tax-saving expenses you have already got – like insurance premiums, children’s tuition fees, EPF contribution, equity credit line compensation etc.
2. Deduct this quantity from Rs one.5 large integer to work out what quantity to speculate. You needn’t invest the whole quantity, if expenses area unit covering the limit.
3. select tax-saving investments supported your goals and risk profile. ELSS funds, PPF, NPS and stuck deposits area unit a number of the favored choices.

This way, you'll be able to discover the way to exhaust the 80C limit. it's best to start finance within the half-moon of the twelvemonth so you'll be able to unfold the investments over the year. Doing this won’t burden you at the top of the year and can conjointly enable you to create hep investment choices.

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COMPANY FORMATION IN INDIA

START-UP IDEAS TO BUILD A NEW INDIA

India has been recognized as one of the top start-up hubs in the world. Especially under the leadership of Narendra Modi there are several initiatives taken from the year 2016 to revolutionize the start-up businesses.
Start-up India Initiative is one such program taken by Prime Minister Narendra Modi which has benefited entrepreneurs across the country. This initiative was mainly take to support the economic growth and create better and more number of employment opportunities.

Let us look into the Facts and Figures of the Start-up India Initiative from 2016 till date:
NUMBER OF NEW START UPS REVOLUTIONIZED
- 16, 578 new start-ups recognized through 499 districts
- 47% of start-ups started from Tier 2 and Tier 3 cities
- A total of 1,66,385 fresh jobs Created by recognized start-ups.

REGULATION INITIATIVES TAKEN FOR SMOOTH FUNCTIONIG OF BUSINESS
1. Exemption from Income Tax Act of Section 56 for investment raised by start-ups upto Rs.25 Cr
2. Exemption from income Tax Act for investments raised by specified companies with no limits
3. 22 regulatory reforms implemented for ease of conducting business
4. Self certification regime for 6 Labour Laws and 3 Environmental Laws.

FUNDING AID TO START-UPS
- 66,000 Cr funding for start-ups with a corpus of Rs.10,000 Cr to support 8,000 companies
- 2151 Cr committed to 39 Venture Capitalist funds who have raised Rs.10,440 Cr
- 1819 Cr invested by Venture Capitalist in 255 companies, creating 29,895 employment opportunities.

INTELLECTUAL PROPERTY ASSISTANCE
1. 1031 Patent and Trademark facilitators to provide free support to start-ups
2. Rebate of 80% granted to 1403 start-ups for Patent filing fees
3. 50% rebate granted to 2672 start-ups for Trademark filing fees

CONSTITUTING INNOVATIVE INFRASTRUCTURE
- 260 Cr spent in establishing 2171 Atal Tinkering Labs in schools across 623 districts
- 7 Research Labs established with an amount of Rs. 665 Cr
- 77 new and existing incubators supported.

EASE OF NORMS PAVING FOR NEW AVENUES TO START-UPS
- For Government tenders the criteria for prior experience, minimum turnover and submission of money deposit is waived off.

STATE START-UP REVOLUTION
1. State Start-up ranking launched to enhance a healthy competitive spirit
2. Participation of 30 States and Union Territories
3. Seed funding aid to 3213 start-ups
4. 21 States have launched start-up policies
5. Start-up India Yatra conducted in 21 States to promote entrepreneurship in rural and non metro areas
6. Mentorship support to 76,146 entrepreneurs across 195 districts
7. 1314 start-ups offered free incubation.

START-UP INDIA HUB-A TOTAL DESTINATION FOR START-UP CULTURE
- Having a community of 3 lakh users and 599 investors, incubators and mentors
- 2,37,902 users have availed free Start-up India Learning Program to build business plans
- 647 start-ups supported through dedicated facilitation services
- 1262 start-ups connected to mentors.

As we can see that there are more than 10,000 start-ups being registered every month in India either as Private Limited, Public Limited, Limited Liability Partnership, Partnership or One Person Company, the government has taken huge steps that have benefited the start-ups. The facts and figures itself mentioned above are the success generated by the Modi held government. In India, the dream of becoming a successful entrepreneur is made a reality.

Start up India initiative is one of the best and biggest revolutions introduced by our present Prime Minister Narendra Modi apart from Swachh Bharath Abhigyaan, Make in India and others.

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Company formation in India | Company registration in India