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What are the legal requirements for starting a business?

Curious about Running Your Business

What are the legal requirements for starting a business?

To start a business in India, there are some legal requirements that need to be fulfilled. Here are some of the key requirements:

1. Register your business entity: You need to register your business entity with the Registrar of Companies (ROC) under the Companies Act, 2013. You can choose to register your business as a private limited company, public limited company, partnership firm, LLP, or sole proprietorship.

2. Obtain necessary licenses and permits: Depending on the nature of your business, you may need to obtain certain licenses and permits from various authorities. For example, if you plan to sell food products, you will need to obtain a Food Safety and Standards Authority of India (FSSAI) license.

3. Obtain a PAN and TAN: You need to obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.

4. Open a bank account: You need to open a separate bank account for your business.

5. Register for GST: If your business has a turnover of more than Rs. 20 lakhs (or Rs. 10 lakhs for some special category states), you need to register for Goods and Services Tax (GST).

6. Obtain any other necessary registrations: Depending on your business, you may need to obtain other registrations, such as a Shop and Establishment Act registration or a Professional Tax registration.

It is important to note that the legal requirements may vary based on the type of business and the state in which it is located. It is advisable to consult with a lawyer or a professional service provider to ensure that you have fulfilled all the necessary legal requirements before starting your business.

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