Legal Steps an Entrepreneur Must Take Before Starting a Business‍

Starting a business can be daunting and filled with complex procedures. Here is a list of steps that an entrepreneur must take for a successful business.

Beginning your own business can be thrilling, but establishing and successfully running a business requires much effort, focus, and resolve. The quickest way to launch a successful business is to realise that helping people is your primary objective. 

If you can highlight a common problem that individuals encounter, it will be simpler to understand and provide a solution. An excellent business concept is merely the beginning of the road, and you'll need to consider a few steps to get it started for it to be successful. Consider doing the following to improve your business concept and position yourself for success.

14 Steps to Take Before Starting a Business

1:Generate a Creative Concept

All of the most prosperous companies have similar beginnings: an idea. Consider a business idea as the company's seed. You must have that before starting watering, adding fertiliser, and developing companion plants. 

To put it another way, before you take any of the actions listed below, be sure your new business has a strong idea. It is because it is the foundation of your enterprise. What special service can you offer? Where in the market is a gap that you can fill? Etc. These are the fundamental problems one must address when developing a business idea.

2: Prepare a Business Plan

According to experts, the next step you should take after developing a business idea is to develop a business strategy. A business plan is also an essential document that any possible financier will request.

It will give them a detailed explanation of your intended business venture, your level of industry expertise, your knowledge of the opportunity, the requirements of the fund, and the anticipated potential profit.

Your business's structure, the goods or services you'll offer, and the channels via which you'll market them are all outlined in your business plan. Before you start a business, writing a business plan will help you identify any potential challenges.

3:Selecting a Company Name

After determining which organisational structure best serves your needs, you must select a company name that accurately captures the philosophy of your venture and ensures that no other entity has already registered it. 

You will need to select a domain name to give life to your business online, a trademark to protect your entity at the national level, and an entity name to protect it at the state level.

4:Get All Necessary Registrations and Licences

The next step is to obtain authorisation to conduct business after the Founder's Agreement is written. Legal licences and registrations serve as authorisations. While some are universal and necessary for all businesses, others are specialized and only for particular companies. Business formation services reviewed by SmallBusinessHQ, such as Inc Authority and ZenBusiness, can help you remain legally compliant.

General Registration

• GST registration
• Permanent Account Number
• Tax Account Number
• Bank Account
• Shop and Establishments license (License for physical premises to the commercial establishment)

Specialised Registrations

• IEC code (To do import and export business)
• FSSAI License (To start a food business)
• Kosher Registration (To deal with kosher goods)
• Halal Registration (To deal with Halal goods)
• Trademark Registration

5:Obtain Your Business's Tax Identification Number, Licences, and Registration

You must register your business and receive the necessary permits, taxpayer identity number (TIN), and employer identification number once your business structure is in place (EIN). 

Numerous tools are available to help you choose a business name, file the necessary paperwork for incorporation, receive the required permits and registrations with your local municipality, and organise your federal tax information. 

Regional corporation commissioners (usually at the county level) can help any new business owner comply with the regulatory standards for each locale across the nation, aside from the IRS, for federal tax problems. 

You'll also need to apply for a federal tax ID or an EIN if you intend to hire employees to assist you in running your firm.

With an EIN, you can file business taxes separately from your taxes, secure your identity, and build credit for your company.

6:Be Familiar with the Applicable Tax Regime and Accounting Standards

Every business needs to consider taxes. Additionally, a range of taxes, including central tax, state tax, and even local taxes, may apply to various enterprises in India. 

Since many companies and operating sectors are subject to multiple taxes, being well aware of the applicable legal regime in advance can be quite helpful.

Additionally, other programmes and initiatives like the Central Government's "Startup India" initiatives try to support entrepreneurs by providing different tax breaks and exemptions.

In business accounting, it is best practice for a company to keep accurate books of accounts and periodically audit them to ensure that applicable accounting and tax laws are.

7:Know the Market and Your Competitors

There is nothing wrong with having rival businesses nearby; it encourages business owners to improve their goods and services continuously. 

The foundation of starting a business is understanding your firm's services, what your competitors are doing, and how your organisation can fit into this environment. By including this information in your plan, you'll demonstrate how thoroughly you've researched the industry for the planned organisation. Without this information, there won't be any real investors interested in the circumstance, and it won't be simple to stand out in the crowd.

Know your market, competitors, and how your company will stand out from the crowd.

8:Protect Your Property

How you safeguard your assets should be your top priority when starting your own firm. No aspiring business owner wants to consider failure, but the reality is that many startup businesses struggle to turn a profit and eventually fail. Even successful people could become the target of unfair litigation that drains their time, money, and resources.

It's critical to safeguard your assets by establishing an LLC to prevent a lawsuit from being the end of your business and your personal financial stability.

9:Protect Intellectual Property

Today's businesses depend heavily on intellectual property, especially tech-focused ones. Codes, algorithms, and even research findings are all examples of intellectual property that an organisation often owns. Every innovative enterprise must first create these intellectual properties and then safeguard them if they are to grow successfully. As a result, legal knowledge of IPR regulations can be useful at every step of a venture's development.

Startups can also benefit from the Startup India initiative's Scheme for Startups Intellectual Property Protection (SIPP), which fosters and mentors unique and emerging technologies and aids in their proper protection and commercialisation.

10:Developing a Sound Business Policy

Another action that can lead a venture to success is developing a sound business strategy. It is something that maintains both management and employee concentration, and this makes it simple to accomplish the desired, planned growth.

11:Hire Legal Counsel

Your company needs access to legal counsel, whether you want to employ in-house counsel or hire an attorney as needed. Legal counsel with experience in business, tax, intellectual property, labour, or international law may be required.

Asking a lawyer to analyse and approve this portion of your business will save you time and money and shield you from potential legal repercussions wherever regulatory regulations demand compliance.

12:Locate and Secure a Location

It would be best to decide where your business should locate before starting it, whether it be a home office or a full building in an industrial park. You should set up the following things before starting your business:

• Internet and phone service
• listings in business directories
• Lease or buy arrangements for your workspace's utilities

Don't worry if you haven't chosen or locked down a location for your company before meeting with investors. Early on, the absence of a definite site is typically not viewed as a deal-breaker or warning sign by investors, bankers, or legal counsel.

13:Select the Business Insurance You Want

Business insurance can cover your venture if your liability protections are insufficient, and insurance can safeguard both your possessions and your company's assets. Some insurance, including unemployment and disability, are even required by law.

Having insurance that shields your startup from additional dangers is another smart move. General liability insurance, product liability insurance, commercial property insurance, and others are a few of them.

14:Have a Firm Grasp of the Method of Winding Up

Deciding to dissolve a business is challenging. All parties involved in the decision to close a business, including suppliers and investors, must be informed in advance, making the process a task that requires careful planning and execution.

From a legal perspective, there are three possible outcomes:

• Court or Tribunal Route
• Voluntary Closure 
• Fast Track Exit Mode

Conclusion

Launching a business in India can be challenging, especially with all the rules and regulations you must follow. But now that you are aware of them, you are not only prepared to begin but also prepared to make it a success. For every business, following the law is crucial; understanding and abiding by the applicable regulations is the first step to ensuring efficient corporate operations.

The best approach to guarantee that your business is always secure and avoids legal issues and repercussions is to employ qualified legal counsel to offer to advise, supervise, and maintain legal documents.

Author Bio

My Name Is Alex John, and I Am a Content Writer (Freelancer) I Write Content On All Topics & My Motive Is To Let The People Of The Nation Get information.