Things to consider / legal aspects while starting up a Business

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The trend of starting up a new business in India is quite catching up, not in scale or pace that’s been seen in Silicon Valley. We see patterns wherein many want to start/build something new – working executives who have acquired enough skill sets and experience, along with a group of friends or freshers who are talented and have a good business idea.

Although talented in their respective fields, knowledge or awareness to this crucial component that links everything in a business or organization (legal aspects) is missing quite often . The start-up guy must acquire some basic legal knowledge that puts various things into perspective and certain things can be avoided in the future……

Click here to read the full article published in MarketExpress  –  a Financial & Business News, Analysis, Insights, Opinions & Research Portal

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Legal Disclaimer:
The information / articles & any replies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do not constitute legal advice or legal opinions. The information / articles & any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, I can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information/article contained without first seeking the advice of a Practicing Professional.
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64 thoughts on “Things to consider / legal aspects while starting up a Business

  1. Hello Mam,

    I am living in pune kothrud. I would like to register for a shop act, but I would like to do shop act licence for my online institute from my home town tumsar, so questions are coming to my mind are
    1. can I operate my institute office from pune, if my shop act registration from tumsar.
    2. if yes then can I make my shop act licence from Pune on address of my home town.

  2. Want to start Manufacture Food product like Banana Wafers, Potato waters, Maida Puri, Poha Chivda etc.. Yest not registered as any firm, guide how do i start & legal procedures

  3. hi, I want to start a new pharmaceutical trading pvt ltd co. of rs 100000 share capital with 2-3 directors. can we trade other products also in the same company in future…and can we also add NGO also. If yes..then Pls guide

  4. We have pending matter before h’ble CLB for separation of Management as our Co is pvt ltd company but meanwhile we want to upload audited accounts with MCA and we are not able to hold AGM as dispute between the management and shareholder, accounts which we are going to uploded for past 3 years, can we do so? please guide

    • Though Board of directors adopt financial statements, financial statements are to be approved by shareholders in Annual General Meeting. If calling of AGM is not possible, Tribunal on application of any member of company call or direct calling of AGM and give directions as Tribunal may think fit. This is as per Section 97 (Power of Tribunal to call AGM) of Companies Act 2013.

  5. I have one 2010 registered company which have 10 lacs authorized capital and 1 lacs paid capital. but company revenue is 0. I submitted e-fileing till 2013. Now I want to sold the company.
    How much money I can get?

  6. Hi I want to start a new private limited company for trading and import export purpose. Please let me the list of documents required.

  7. I am going to start new agarbatti branding business with very less capital. So which form of registration will be favourable through which i can also get the IFRC (product code) for my product.

  8. I am going to start business for branding incense stick. So will you advise me which form i should choose for registration for my business.

  9. Mam,

    I would like to start a small Gruh Udyog for my Mom of “Home Made Owa Ark”.

    Do I need to complete any formalities for legal stand point?. Do Govt allow an Individual to prepare Owa Ark @ own residence?

    • Yes business on small scale can be registered at own residence address. Either she can register proprietorship firm or one person company under Companies Act 2013. For more details read my blog to know the step by step process of formation of OPC.

  10. Madam

    I am an Indian working in muscat would like to open a company in India , please advice can i open a company in India without in India because i want to sell some my products through online webside and they are asking for buisness / tax registration no.

    please advice for the same

  11. Hello,
    i want to start a tea powder production packing plant of my own brand name. will you please explain which kind of NOC & permission i have to take.

  12. Hello madam,

    I would like to start my own gruh udyog but i don’t know which documents are required to start up business. Please explain me legal formalities for the same.


  13. Hello,
    Me and my 4 friends are planning to start multi-vendour marketplace e-commerce website in pune.
    We are from Pune Itself, Can we start it with LLP?
    Any minimum age limit for it because we all are about 21 years of age & mechanical diploma pass out.
    What Will be cost to Start LLP?
    & capital is less than 100000


  14. Hi Mam.
    The Blog created by you for understanding Company Formation/Incorporation and Registration is very helpful.
    Thanks for the great effort and time devoted by you.

  15. hello maam

    a company registered in USA wants to establish a private company in India. We wanted to know the procedure and requirements of law. The company deals in medical products.

  16. Dear Madam,

    I want to know about the compliances to be done and approvals to be obtained for a E-commerce business carried out in India and abroad.

    The business will be carried out by a LLP.

    Please help.

  17. I am an NRI ( holding Indian passport) and planning to start a business in India with another NRI partner. I read the following clause for forming Private Limited in one of your articles and does the the same clause applicable for LLP formation? What are our options?

    Minimum requirements for the Private Limited Company
    • Minimum 2 Directors [As per Section 149 (3) of the Companies Act, 2013 (implemented with effect from 01.04.2014), every company shall have at least one director on its board of directors, who has stayed in India for a total period of not less than one hundred and eighty two (182) days in the previous calendar year.]

  18. Hi, I am planning for a company which deal with Bee keeping, and Honey processing, Packing, Export, and Local sale in india. I am planning to start the company in Tamilnadu.
    I am confused which company type I have to form LLC or Prop. or PVT.

    Tell me which is best and why? please explain the legal formalities involved.

  19. DEAR MADAM ,

  20. Hi Mam,

    I want to form a Private limited company can you guide me to decide authorised capital of company i want to set up cold storage in gujarat. I also want to take loan of Rs. 6 crore for this so authorised capital how to decide.

  21. hi mam
    i wants to start my one company in cab provier sector. i am trying to make cab sector more trancparent with the help of IT support . me and my one friend take this startup. we are starting in pune only will u tell us what amount of money and darcument we required .to register our company.

  22. Dear madam kindly tell me how much cost required to registered a pvt. ltd. company in india.

  23. Hi Mam,

    I am I would like to set up low budget food processing plant (masale) in Maharshtra Like Gruh Udyog, with two partner. plz explain me legal formalities for same

    Thank you

  24. Good evening Madam,

    Iam a fulltime salaried employee of a public ltd company planning to form a Pvt ltd company along with my 4 friends.all of us are working however we are also asssociated with one of our friends brother’s firm and have invested money in business with him. now at the same time we want start our own PVT LTD company i have gone through your blog on the prodecure and legal formalites also want to know to from your end are there any other things that we need to take care. Our business is based on data processing services to our clients .

  25. Dear Mam,

    We need to Convert a proprietory business with a annual turnover over 1 Cr. into Pvt. Ltd. Company. Wish to know the procedure for the same and the feasibility as well.

  26. Hello,

    We wish to start a new Pvt. Ltd co. for eletrical, Civil & Telecommunication related work, Please help us with the procedure and the legal implication for the same. We wish to take it asap and form a company for the said purpose.


    Vipul R

    • Please visit my blog for knowing the step by step procedure of incorporation. For further details please call me.

  27. hello mam,
    I m Dhanashri Parthe I have appeared for my CS final and seeking for articleship can you please help me reagrding the same

  28. Hi Mam!

    i want to establish a company in Uttar Pradesh, for only Marketing of Agricultural Inputs such as Micro Nutrient Mixture, Bio Fertilisers and there after wants to deal in Pesticides also. Now pls advise me that what will be the procedure to setup it, a major question is that should i take a licence from State Agriculture Deptt.

    • Licence from State Agriculture Department would be required as per my opinion since you will be dealing in marketing of agricultural inputs.

  29. I am presently unemployed and thinking of starting a distribution business of equipments. Do i need to register this?

    • yes for registration of any business you either obtain shop act licence(applicable in Maharashtra) and open Current account in the name of business.

  30. I am a fulltime salaried employee of a public ltd company & interested in forming a new Pvt Ltd company along with my 3 friends.Two of them are not working however i don’t intend to leave my current job but still want to be a part of the new company.
    Would like to know what are the options available with me to avoid any legal issue with me bacause of my employement.


    • You should first find out what your Organization’s Code of Conduct / Terms of Employment Agreement states for the consequences of any violations. If it doesn’t allow you to start/participate in other ventures then you may take your own decision or there could be alternatives like adding your spouse/relative as a partner in that new venture.

  31. Hello, I read your very informative article abt LLP on MarketExpress. My question is: Is is possible to form a LLP without a resident partner? In other words a LLP between an american and a NRI indian?

    Thank you!

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