After Startup registration, it’s
necessary to ensure that a startup company adheres to all relevant laws,
regulations, and industry standards in order to operate legally and
responsibly. Compliance is a critical aspect of running a startup, as failure
to comply with applicable rules and regulations can result in legal, financial,
and reputational risks. Seeking professional help can be beneficial for
startups, especially when it comes to navigating complex legal, financial, and
operational aspects of starting and growing as a business. Here are some key
parameters of startup compliance that are typically important for most
startups:
·
Legal structure: Startup Registration or Business
Registration can be registered as a registered partnership firm, company, or limited liability partnership
(LLP), so they have to meet the compliance according to their legal structure.
·
Various business registrations: Depending on the nature of the Business
Registration and location, it may need to obtain various licenses and
permits at the state, national or international levels. These may include
general business licenses like GST registration, PF ESIC
Registration, IEC code registration or MSME registrations etc.
·
Legal Compliances: Business Registration or Startup
Registration or have to comply with Tax laws and regulations, after getting
registered with various authorities startup have to comply with the
registrations on periodic basis like GST returns, MCA filings, TDS
returns, Professional Tax returns, PF ESIC returns etc.
Startups,
especially those in their early stages, often face financial challenges and
complications that necessitate skilled financial management. Legal services can
be extremely advantageous to startups since they allow them to function freely
without worrying about their compliance. It is difficult for startups to meet
the legal criteria to follow the initial statute. Here is list of some
important Legal services that and startup can expect from a professional:-
1.
Financial Reporting Services: Financial reporting is an important
requirement for startups as it helps to provide its financial status of the
company throughout the year. Financial reporting also includes accounting which
provides businesses with the tools and information necessary for effective
financial management. By maintaining accurate and up-to-date financial records,
startups can track their financial transactions, monitor their cash flow, and
make informed financial decisions based on reliable financial information.
Accounting provides startup businesses with accurate and up-to-date financial
information that enables effective financial management. It helps businesses
track their income, expenses, assets, liabilities, and equity, and provides
insights into their financial health, performance, and cash flow as this
information is crucial for making informed financial decisions, setting
financial goals, and planning for the future.
2.
Auditing & Assurance: - Auditing and assurance services
are critical for businesses and organizations to ensure the accuracy,
reliability, and integrity of their financial information. After the business
registration, Audit and assurance services provide an independent and
objective assessment of a company's financial statements. This helps ensure
that the financial statements are prepared in accordance with applicable
accounting standards and present a true and fair view of the startup's
financial position, performance, and cash flows. Reliable financial statements
are crucial for decision making, stakeholder confidence, and compliance with
laws and regulations. There are various types of audits like statutory audit,
internal audit, stock audit and management audit etc.
3.
Professional Consultancy services: - Professional startup consultancy in India are
specialized services offered by experts or financial or legal professionals in
a particular field or industry to assist individuals or companies in solving
complex problems, making strategic decisions, or improving their performance.
These services can be provided by professional individuals or firms and cover a
wide range of areas such as management, finance, marketing, legal, and human
resources. These consultants typically work with clients on a project basis,
providing a specific set of services to help them achieve their goals. These
services can include things like research and analysis, strategy development,
process improvement, project management, training and development, and
implementation support. Consultancy services can benefit organizations in many
ways, including improving efficiency, reducing costs, increasing revenue,
enhancing customer satisfaction, and mitigating risks. The consultants bring
expertise and experience to the
4.
Taxation services- Tax compliances are very important
requirement after Business Registration nowadays as it refers to the process of
adhering to the rules and regulations set by the government regarding the
payment of taxes. It involves fulfilling the legal obligations related to tax,
such as filing tax returns, paying taxes on time, and maintaining accurate records.
Tax compliance is essential for individuals and businesses to avoid penalties,
fines, and legal consequences. In India any business has to follow two types of
tax compliances, first Income tax and second GST (Goods and Services Tax)
compliance. GST is a value-added tax that is levied on the supply of goods and
services across India. It is a comprehensive tax system that replaced several
indirect taxes such as excise duty, service tax, and value-added tax apart from
GST compliance a startup needs to file its income tax return (ITR) of
income earned during a particular financial year and they have to pay tax
accordingly.
5.
MCA compliances: - When a Startup Consultancy in
India startup registered as a company or LLP they have to comply
with various legal and regulatory requirements that companies in India must
fulfill under the Companies Act, 2013 and other relevant laws. It is essential
for companies to comply with all the MCA regulations to avoid penalties and
legal action. To ensure compliance, companies can hire a compliance expert to
manage their MCA compliances as every affairs of startup needed to be reported
in Register of companies if they are registered as LLP or Company. There are
various MCA compliances to be fulfilled by startups on yearly basis like filing
form 11 and 8 in case of LLP and Form AOC-4, MGT-7A and DIR-3 KYC in case of
companies so it is necessary to ensure that startups must comply with all the
legal compliances.
6.
Other business registrations: - A startup also has to obtain some
additional business registration depending on their business structure and requirements,
such as FSSAI registration if they are in the food industry or IEC code if they
are engaged in international business. Startups must also register for several
forms of registrations based on their geographical location, such as
professional taxes, shop and establishment registration, startup consultancy in
India. So it's difficult to determine which specific sorts of registration are
required for any startup. However, the above mentioned services are the basic
services that any startup may obtain from any expert and are required to
startup on a regular basis.
In today's digital age, the need for professional
Read MoreIn the realm of modern business operations, the r
Read MoreWhat Happens if my GST Registration is Cancelled?
Read MoreIn the world of business, change is inevitable. C
Read MoreIntroduction In an ever-evolving corporate land
Read More2023 Ampuesto Consultancy Private Limited. All rights reserved.