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Funding is an extremely significant aspect in line with meeting the vision of a business. Funding and fundraising, both are fundamental modern business scenarios that support the growth of a startup.
A shareholder agreement is a legal document that is made between the company and the shareholders. It lists out the rights, powers and provisions that they get. It ensures that no rule is violated and the rights are preserved.
This document provides a clear understanding of the relationship between the company and its shareholders. In the long run, this helps in quicker solutions for any dispute that might occur and ensures smooth collaboration.
Just like every individual is obliged to get their birth certificate, every company is required to get a Certificate of Incorporation for themselves. A Certificate of Incorporation is the legal document that makes the company formation valid or brings the company into existence.
No Objection Certificate (NOC) is a legal document that is issued by any company, individuals or a corporation. It has a list of items against which the signee has no objection. This document is used by businesses during employment, trade, immigration, partnership and a lot more. This legal document can be used for or against in the court of law. No Objection Certificate usually consists of basic details of the parties involved, and it is addressed to whosoever is concerned.
Oftentimes you must have seen colleagues turn co-founders. Well, this is the document they need. A Founders’ Agreement is an official contract that is signed between all the co-founders of the firm. This document states all the responsibilities, ownership, and initial investments made by each of the founders. It is advised to make a founders’ agreement at the incorporation stage of a business as it will lay out the responsibilities and roles of each of the co-founders. It is also advisable to have a written format of this document.
Permanent Account Number (PAN) is a must-have a document for anyone who comes under the bracket of the taxpayer. This means it can be an individual, a sole proprietorship, partnership or a private limited company. Be it an Indian company or a foreign company, you need to get registered and have a PAN card. You can get a company PAN for yourself by following an easy process.
Tax Identification Number is a unique number assigned to a business by the Commercial Tax Department of the state that has received the application. It is an 11-digit number that serves as an identity for a business, which is registered under VAT for the trade of goods and services. Documents required for TIN might vary between states.
Each taxpayer is assigned a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). A GSTIN is mandatory by the government for businesses with an annual turnover exceeding Rs.20 lakh. If you are a registered dealer, you need to file GST returns and make a payment if GST liability exists. Additionally, a GSTIN also helps when you are looking to avail a loan to fund your business.
A non-disclosure agreement is a contract wherein two parties sign a document while agreeing not to disclose any confidential information outside of work. The main purpose of the non-disclosure agreement is to protect sensitive information. It is a legally binding contract between the two parties.
Indian entrepreneurs are building new businesses at the rate of 3,000 to 4,000 per year, according to a 2014 estimate given by NASSCOM. It is also well known that nine out of 10 startups usually fail.
The First Annual Compliance on our list of Compliances for Startups is Income Tax Filling. The Financial Year in India is from 1st April to 31st March and when this Financial Year ends every Company and Individuals who according to Income Tax Slab of The Particular year are required to pay Income tax has to file an Income Tax return. For Startup Company it is Mandatory to File for Income Tax even if They Do Not makes any Profit for the financial year. So you must keep in Mind that as soon as financial year ends you need to gather all The Bills, voucher and other documents that depict financial transaction and Contact a Ca, Cs and ICWA Firm to Make financial Statement, prepare income tax return and Filing Income Tax Return.
If You Forget To File Income tax return, You May have to pay a high No filing or Late filing fees or If You delay too much A Legal action can be taken on Your Startup Company.
Every Company or Individual who is Selling Goods and Services in India has to Mandatorily get GST registration and File Gst returns Even If they Do Not make Any sale In The Month or year. If your startup is selling goods and Services in India, then you should make sure that you acquire a Gst Registration or if You already have GST Registration then you must file Gst return On Monthly and annually basis.
When anybody starts a business In India, they are required to obtain License Within 3o days of commencing a business. The Licenses That are required by All the Startups are Shop and Establishment Act License or Gumasta License in case your Business is in Maharashtra or Gujarat, 0046ssai License of you are in Food business, Trade License, Import, and export code if Your startup is in and other Business specific License.
If you Have not acquired a business license then you must first get all the required Business licenses and if You have Acquired business license then you must either renew it Annually or as per The license expiry date or required by the License authority.
If you’re Startup Is Food Business, Medical business, Transport Business, construction business or any Other Business, if you are using any equipment Then It is your duty to check and Maintain Monthly, quarterly or annually to make sure The Equipment is in Proper condition and in some Business It is mandatory to check and maintain Equipment.
You need to Carry out Monthly and Annual Audit of your Financial Statement, You need to Hold Annual General Meeting, Carry out business analysis and Discuss Findings of analysis with coco, CF, Director, managers and Company staff etc, Update and Check Company policies and Procedures, Follow-up and stay Updated About any changes in law and compliance related to Business and Always Keep your Cyber security Updated and always pay attention to Data protection laws. So this is the part of the Annual Compliance for a Private Limited Company.