Legal requirements to start Business
Many people come for consultancy regarding legal requirements to start a business.
Here are some of the general requirements to start certain type of businesses.
Decide the legality whether Individual, Partnership or company. And register with MCA or applicable registrar.
If you are service provider than go for Service TAx registration.
If you are trader go for VAT registration.
If you are manufacturer than Excise registration will be required.
However these registration are applicable only if you sell cross specified value.
Its quite obvious every one has urge to start with business, with a few limitations of source of information, where to start, when to start and what needs to be done so that, things dont turn down.
Its always said, Ignorance of law is not an excuse, as such the law of land frames certain set of procedures to be followed to be abided with in case a set of behaviour or action needs to be undertaken.
Business combines various activities and its quite difficult for a business man to see on whether the transactions undertaken or actions to do or abstain from doing involve legal implications / obligations. Therewise its alway preferred to get briefed up with a technical person to get acquainted with laws prevailing in the land, the means, methods and procedure to be followed, commonly called a CHARTERED ACCOUNTANT.
The role of Chartered Accountant have been far been misunderstood by the business community as a middle man or a person who knows how to twist the laws in benifit of the client. Infact, the pressumption is a incorrect one due to few explicit examples from our own community i,e chartered accountants.
A good business always starts with an understanding of What is required, When it is required to be done, What for it is required and Who has to do it...!
To keep it simple, If act of business is to be performed, what all will be the rules governing it, when a law needs to be complied and why its needs to be adhered to is of all primary importance.
To site an example of VAT registration which most of business community follows as a license requirement rather than a benifit. Thinking why..? The reason is VAT registration invloves tracking of sales, purchases of goods, consumption happening, revenue occuring to state due to movement of goods. These key statistics provides the government authority with projection on where is the economy heading, whether the goods or class of goods or products require any incentives, whether rates of tax needs to be revised.. etc etc. From a business mans point, the VAT registration provides an address proof registration, further it provides a certificate acknowledged by a government authority and provides a proof if there are brand related issues later with Trade name.