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Compliances are the structural backbone of a Company. And this holds true for Start ups as well. Most Start up entrepreneurs, especially those coming from technical backgrounds, have little knowledge of the required compliances or their implications and tend to let it pass. It is later when they get hit at the time of fund raising, or due diligence or on receipt of notice from governing establishments, that they face severe repercussions.
This has to be especially viewed in light of the new Start up policy announced by the Government of India. The policy encourages self certification based compliance, including environment regulation. This should however not desist Start ups from adhering to the statutory requirements. In the event of any failure to follow compliances, Start ups will have to cough up heavy fines or penalties after the 3 year inspection holiday ends.

This is the reason why, before starting any business, the entrepreneur should have a contract signed and ready with himself. Firms such as IBS help in structuring these Startup Business Contracts which help in the Business long run.
Why are compliances important?
1. Strengthens internal process capabilities
2. Prevents employee fraud, waste, loss of name or government fine
3. Prevents any director penalties, including imprisonment of key office bearers
4. Helps achieve high valuation, as better process controls & compliances indicate a better managed and risk free company
5. Increased funding opportunities
6. Healthy financial statement, as there will be no risk of retrospective fees or penalties.
Compliances for Start ups 鈥?A Bird鈥檚 View
Labour Compliances:
As per the new Start up policy, Start ups will have to self certified their compliance with 9 Labor Laws and Environmental Laws. In case of Labour laws, no inspections will be conducted for a period of 3 years. The aim is to reduce regulatory burden on Start ups and allow them to focus on their core business. It does not absolve them from following compliances or prevent any penalty if discrepancy is found later.
Start ups may hire full-time employees, independent consultants, and contractors, whom the company should pay as per labor legislations. Some key registrations to note:
鈥?Professional Tax (PT)
鈥?ESIC
鈥?Provident Fund (PF)
鈥?Labour Welfare Fund
鈥?Contract Labour compliances
Licensing Requirements:
Start ups will have to adhere to the licensing requirements as applicable to the industry in which they operate. For instance, a. Cheap Air Max Cheap Air Max Jordan 6 For Sale Nike Air Max 2018 Sale Wholesale Jerseys Free Shipping Cheap Jerseys Free Shipping Cheap Jerseys China Cheap Jerseys Wholesale Wholesale Jerseys Wholesale Jerseys