How to Start a Business Legally in 2020? (Complete Guide)

If you are thinking of starting a business in India then you have to comply with the rules and regulation. And it is very important to register your business under concerned authority.

For e.g., if you are thinking of starting a Limited Liability Partnership firm. Then you have to register your business under Ministry of Corporate Affairs. Because it is mandatory for an LLP.

This article talks about the legal registration which is required for the business. So after reading this article, you will get an idea about the legal registration which is required for a business.

Also Read: How Companies use Digital Marketing Effectively for their Growth

List of legal registrations which are important for a business

Business Registration – Business registration is important for starting a business legally in India. Without business registration, your business may not be recognized legally.

Business registration is also important for making others document on the name of the business and after business registration, your business will become eligible for obtaining profit from various government schemes.

If you are thinking of starting a private limited company or a Limited Liability partnership firm or a one-person company then it is mandatory for you to get done your business registration under Ministry of Corporate Affairs.

Ministry of corporate affairs regulated the companies and LLP and according to their rules and regulation it is mandatory to fill an incorporation form before starting an LLP or company and after registration, you will get an incorporation certificate which proves that your business is legally registered under Ministry of corporate affairs.

If you are thinking of starting a business as a sole proprietorship firm then you have to get done your sole proprietorship registration and if you want to start a partnership firm then you have to get done your Partnership registration.

Udyog Aadhar Registration – Udyog Aadhar registration is an important registration for starting a business legally in India because if you are thinking of starting a small or medium enterprise then you have to register your business under Ministry of MSME which can be done through Registration of Udyog Aadhar.

Udyog Aadhar is 12 digits unique number which is allotted by the Ministry of Micro, Small and Medium Enterprises. After obtaining a Udyog Aadhar number you will get many benefits under various government schemes like interest on low-interest rates, subsidy under government schemes, remuneration, etc.

So if you are thinking of starting a business then you should register your business under Udyog Aadhar so you will get many benefits under various government schemes. This registration can be done through an online procedure for which you have to visit the official website of Udyog Aadhar.

GST Registration – GST stands for Goods and Service Tax and it is an indirect tax which is collected by the central and state government.

GST registration is very important registration because it is mandatory for those whose turnover is more than 40 lakh rupees and in some state, if turnover is more than 20 lakh rupees then GST registration is mandatory.

In case failure of GST registration then you will be liable for a file or you may get punishment of imprisonment. It is the duty of a service provider to collect GST from customers and then pay it to the government.

So if you are thinking of starting a business then you should register your business under GST and after GST registration you will get a GSTIN (Goods and Service Tax Identification Number) which is important for filing of GST.

Shop Act License – Shop Act license is very important for commercial activities in the local area or for establishing a factory or a shop in the local area.

If you are thinking of establishment of an office or a shop then you have to take permission from the local authority for that so you have to apply for shop act license which is allotted by the Local authority of area that is Municipal Board.

In Maharashtra, if you have 10 or more employees then it is mandatory to obtain a shop act license and without obtaining a shop act license you are not allowed to carry the commercial activity.

So Shop Act license is an important license and you should apply for this before starting your business and this license is a legal proof that you are running a legal business so you should obtain this.

Conclusion

As you can see in the above-given article that legal registration of a business is a most important thing for you before starting a business because without business registration your business may not able to obtain various benefits under various government schemes.

As you can see that another legal registration like Udyog Aadhar, GST registration, Shop Act license is also important for a business because without obtaining these license you may have to suffer legal problems so if you are thinking of starting a business legally then you should register your business and should done other legal registration which is important.

The post How to Start a Business Legally in 2020? (Complete Guide) appeared first on BloggingScoops.

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