Every nation’s economic hopes are pinned on its young, small businesses. Startups are the centre of innovation and are the most important employment generators for any country. They add value to consumers who use their service and become a source of identity for a region. Bengaluru, Hyderabad, Chennai, Delhi NCR and Pune are examples of the kind of transformation that a gathering of focused individuals could bring about in a socio-economic system. 

Most often, we are struck by a brilliant idea but usually fumble when it comes to realising it. To help those who know how to work their magic on the dais, we have jotted down the procedure of how to make your business idea a reality. If you have an idea to start your own venture, the following steps can help you set up shop so you can turn realise your startup dream. 

1. Trademark Registration 

A trademark is a symbol, word, or words legally registered or established by use as representing a company or product. It is the protection that you avail to secure the identity of your company.

The government fees is just INR 4500 for individuals and  MSMEs and INR 9000 for Private Limited companies. Online facilitators charge very little to get the registration done. Moreover, you only need to mention the date you started using the brand and provide the logo or brand name. Within three days, you can start using the trademark symbol beside your name.

Without the registered trademark, proving your ownership in a court of law in the case of an infringement could become difficult. It is the trademark that differentiates Naukri from Naukrinews and Naukrie.

2. Company Registration 

The most important step is to get your company registered. Private Limited Company registration is most commonly preferred as it attracts funding which is pivotal for scaling. It takes around 15-25 days to register and is possible to do online.

Once you get this done, you can apply for MSME registration which is very easy to get. There are several support systems for MSMEs at the state and union level. The government offers a credit guarantee scheme and technical and marketing assistance.

Also you can register at Startup India, to avail tax exemption for 3 years and concessions on capital gains along with fundraising opportunities.

3. GST registration

Any new business whose turnover exceeds the threshold limit of INR 20 lakhs (INR 10 lakhs for North Eastern and hill states) will have to register under GST. 

Those startups with a turnover between INR 20 lakh and INR 1.5 crore may have to pay the GST at a lower rate, under the Composition Scheme.

Non-registration where a person is liable to be registered under this Act is an offence under the CGST Act. This is punishable by payment of INR 10,000/- or the amount of tax evaded, whichever is higher.

4. Shops and Establishments registration 

If there is a regulation that applies to all Indian businesses, both big and small, it’s the Shops & Establishments Act. After review of the Chief Inspector of the Act, the shop or commercial establishment will be registered and a registration certificate will be issued to the occupier. Without a registration under this Act, there is no taking your business forward. In fact, it is the license that a bank will ask you for when you approach them even to open a current account.

5. Founder’s Agreement 

A Founder’s Agreement requires the co-founders to come to an agreement over crucial aspects of the business, such as their rights, responsibilities, goals, their broad vision for the company, investing provisions and anything else that co-founders may want to settle before the business takes shape. 

If you think disagreements among co-founders that might threaten the survival of a company will never happen to you, you are not alone. But it can happen and it is wise to be on a sound legal footing and be prepared for it.

If you’re a startup or entrepreneur looking to avail legal services, we’ve got an exciting offer for you! Exclusively for our GlobalLinker members, VakilSearch is offering 3 Legal Services for the unbeatable price of just ₹ 2,018 (excluding govt. charges & taxes). Legal Services include Trademark Registration, Partnership Agreement, GST Registration, Memorandum of Understanding, to name a few. Hurry, offer valid only for the first 2018 members!

To explore business opportunities, link with us by clicking on the 'Invite' button on our eBiz Card.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.