16 Mar 5 Legal Mistakes Made by Startups & Founders
A business demands you to excel in different functions which go from planning to controlling if you want to become successful. While these functions may seem easy from the context of their name, there are actually a large number of activities that need to be executed to reach the milestone. All these functions are perpetual and they continue throughout the life of the business. Law is something that governs each and every aspect of business, abiding by business laws is an essential need of any startup.
The rules and regulations for a company are laid down by the Companies Act, 2013 and if you have an innovative idea for a startup,. You can see it flourish from the start if you don’t ignore law and stay away from the mistakes that usually new businesses make when they move forward in the corporate world.
1.NOT HIRING A GOOD LEGAL ADVISOR
Law is a professional subject and there are designated individuals to guide you in the right way and make you familiar with the laws that you need to follow to sustain on the legal pathway. There are a lot of law firms, which provide corporate legal assistance in an immaculate way and eradicates the lingering fear of any legal intervention of business. Thus, it is always advised to hire a professional to guide the way as one can only know so much about everything there is about a business.
- SEGREGATION OF PERSONAL AND BUSINESS EXPENSES
Some new entrepreneurs make the mistake of not hiring good accountants and not maintaining books of accounts for the expenses in their business. Rather they try to record these expenses with their personal expenses.This creates problems while filing taxes and also amalgamating personal business expenses is a hindrance while preparing P/L accounts.
- Not Getting IP protection
Intellectual property is the ingenious creation of a person and is the fruit of their imagination and thinking. However, there are copycats who have a sharp eye for your creation and try to duplicate your service or product in any chance that they get. Getting your trademark registered is crucial as it helps you gain exclusive rights to your creation and safeguard it from such copycats. There is an abundance of law firms which provide expert legal guidance to get your IP registered and protected.
4.Mising tax payments
As lawful businessmen, you need to submit your taxes beforehand, either collectively or in installments whatever suits you. If you do not pay your taxes it can land both you and your business in grave trouble which leads to fine or even imprisonment. Tax evading is an offence and as a responsible part of the economy we should pay our taxes on time always.
- Non-compliance with the laws laid down to be followed by the business
Law is the supreme power that governs a business. It makes sure that a business does not indulge in unlawful practise, unfair trade, cheating or commit any such offence. Make sure you are familiar with all the important laws for your business if you want to see your business flourish and be free of any obstructions while conducting your business.
It is always advisable to abide by these rules and regulations as they are the driving force for your business and everything needs to be in harmony for a business to emerge as a gem for the corporate world.