Platform to Showcase Innovative Startups and Tech NewsPlatform to Showcase Innovative Startups and Tech News
    Facebook Twitter Instagram
    Platform to Showcase Innovative Startups and Tech NewsPlatform to Showcase Innovative Startups and Tech News
    Facebook Twitter YouTube
    • Featured Startups
    • Funding News
    • CEO Interviews
    • Startup Resources
    • Inspiring Stories
    • Submit Startup
      • Pitch VCs
    • More
      • Our Team
      • Advertise
      • Write for us
      • Privacy policy
      • Startup listing
      • Steal The Deal
      • Contact
    Platform to Showcase Innovative Startups and Tech NewsPlatform to Showcase Innovative Startups and Tech News
    Home»Featured Startups»Tax and Legal Issues for Startups
    Featured Startups

    Tax and Legal Issues for Startups

    Prashant SharmaBy Prashant SharmaJanuary 15, 2013Updated:October 26, 20204 Mins Read
    Facebook Twitter LinkedIn Email
    Share
    Facebook Twitter LinkedIn Email

    This article will tell you about various tax and legal issues for Startups that may be faced while starting a startup venture.

    Google might have re-directed you here as you have decided to be on your own and on the verge of starting up a new venture. This might be your first shot at entrepreneurship and you are contemplating the various factors or challenges you might face in the long run.  Well, you are on the right track and we are here to detail you on the various tax and legal issues that could act be road blocks for your startup venture. legal issues for startups

    Firstly, you need to choose the appropriate legal structure apart from registering and obtaining a license for your business. Declare your net worth and consult a tax and legal consultant if dealing with T&L is not your cup of tea. Apart from these pay your business taxes on renewing the insurance on time. Never run uncovered! These are the basics for every startup.

    Here goes the top tax and legal issues for Startups

    Recruitment problems

    Along with  a gush of fresh air, new hires also bring along some potential hazards if their recruitment is not governed by pre-defined policies. He should be issued with an offer letter can be conditional or final.  The offer letter should contain the policies that would govern the employee and his cost to company, designation, components of CTC and leave policies. Resignation or retention policies should be well laid.  Some startups only to save cost, hire resources with an imperceptible agreement and pay a monthly remuneration in exchange of the work done. This attracts legal fines and criminal liabilities and is not at all healthy for startups.

    Safeguarding patent and copyright issues

    Also known as IP (Intellectual Property).  Many startups create the mistake of not creating a robust policy to safeguard their intellectual property. Or simply patents. For example, if you are an application developing firm. Once you have developed any particular application you should apply for the patent and copyright on your Intellectual property. So that once published the same is not misused. On the other hand, few startups use free stuff from the web or third parties without giving due credits to its creator. Any intellectual property needs to handled professionally and effectively. Any misuse can lead to legal obligations.

    Issues from Debentures

    Certain tax issues also surface for startups pertaining to the debentures. It is quite obvious that a starter would need a loan to cope up with its startup expenses. So they borrow money from various financial institutions and is liable to pay a certain interest on the borrowed sum. Few startups illegally try to evade tax by playing around with the debentures and if they are non-convertible in nature even (by brittany at tf online). Now if they are unable to pay the interest which is off-course a handsome amount of money they try to play around with the debentures to evade taxes and if by any chance they are non-convertible, the lender cannot convert them to equity shares and end up incurring huge loss. These issues can be extremely challenging for the growth of a startup business.

    Background check for employees

    The prime objective of a startup is to get work done quickly. In doing that , most of the time they don’t execute an appropriate background verification and criminal check before hiring the resources. This could be extremely hazardous and might lead to various legal issues. This acts as a blemish to the reputation of the company and might lead to a cancellation of the business license.

     

    legal issues for startups
    Share. Facebook Twitter LinkedIn Email
    Prashant Sharma
    • Website

    Prashant Sharma is a Delhi based Entrepreneur who spent most of his college days polishing his marketing skills and went for his first business venture at 19. Having tasted failure in his entrepreneurial debut, he turned a Tech-enthusiast, specializing in web technologies later. Join him on Google Plus

    Related Posts

    GreedyGame: Unlock your App’s Growth Potential

    December 6, 2022

    SketchBubble: Get the Most Professionally Designed Presentations in Few Clicks

    September 18, 2021

    EasyTrade: A Platform that makes Online Trading Simple & Easy

    May 20, 2021

    Guide to Hernia Mesh Lawsuit – Details and Implications

    March 24, 2021

    Leave A Reply Cancel Reply

    Popular Post
    • Why is one Airpod louder than the other- reason and fixes Why Is One Airpod Louder Than The Other- Reason And Fixes
    • Is Real Estate Investment Trusts a Good Career Path Is Real Estate Investment Trusts a Good Career Path? [Complete Guide]
    • advertisement examples 16 Creative Product Advertisement Examples & Ad Campaigns You Must See
    • Places that hire at 15 Places that Hire at 15 Years – Top Choices for Teenagers
    • Pestel Analysis PESTEL Analysis – What it Means and its 6 Factors Explained
    Category Posts
    • how to stop instagram from saving posts to camera roll How to Stop Instagram from Saving Posts to Camera Roll: Take Control of Your Post-Saving Settings
    • how to draw on pdf How to Draw on PDFs: Unleash Your Artistic Skills
    • locked vs unlocked phone Locked vs. Unlocked Phones: Making the Right Choice
    • Apple may rollout ‘several’ Macs at WWDC Event
    • how to mark all emails as read gmail How to Mark All Emails as Read in Gmail: The Ultimate Guide to Inbox Organization
    Our Partners
    Shopping online for Windows tablet - DHgate
    Platform to Showcase Innovative Startups and Tech News
    Facebook Twitter YouTube
    • Popular Posts
    • Advertise
    • Submit A Startup
    • Privacy policy
    • Disclaimer
    © 2023 Techpluto. Designed by Techpluto.

    Type above and press Enter to search. Press Esc to cancel.

    Catch the latest news from Startup World in your Inbox!
    [email protected]