Challenges Encountered by a Startup in India

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Official Challenges Encountered by a Startup in
India
Managing and running a startup is a challenging
task for the entrepreneurs. It is necessary to
reduce the risks and prevent disputes wherever
possible. A startup seems to fail mostly in legal
challenges of running a business. It is important
for a startup to avoid the run-in with clumsy
nature of the Indian judicial system. Below are
some of the challenges encountered by a startup
in India.
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Business Structure One should be detailed about
the kind of business that you want your startup
to be. According to that, the structure of your
startup is made- whether it is a sole
proprietary, partnership, private company, or a
public company. After deciding the structure of
the startup, it is necessary to ensure that all
the important agreements are correct. This is
done to ensure that there are no legal barriers
when any dispute rises in future. Taxation You
should abide by the tax laws in order to prevent
punishment and penalties. Every startup needs to
be specific about the tax charges that it needs
to pay to the central and state governments.
Businesses should be well aware of the latest tax
laws and how it effects the structure. Labour
Laws When a startup begins its operations and
hires employees, it is related to the labour laws
of the country. This is one of the toughest
challenges that a startup faces, and therefore
should abide by all the necessary labour laws.
These laws include minimum wages of employees,
provident fund, payment of gratuity, maternity
advantages, and prevention of sexual harassment
in the working environment. Business
Licenses For smooth functioning of a startup, a
license is needed. For instance, a business
related to food has to get licenses concerning
food safety, food adulteration, and health. A
startup needs to abide by the terms stated in the
license.
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Protection of Intellectual Property Once the
startup progresses, it creates an intellectual
property which includes algorithms, researches,
codes, designs, etc. It becomes necessary to
protect this intellectual property and avoid its
misuse by other companies and units. Some startup
underestimate this and later face the challenges
related to copyrights. The founder should be well
aware of the main principles of IP rights such as
patent filing, copyright protection, and
trademark. KNTX is a leading company that
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