In every small household people are running their own business which are working at a very small scale. Different women from different areas in the country are running businesses like cake shops, fashion boutiques, weaving shops, pickle factories and so on with very little and almost no labor.
These small businesses are not only limited to women, many men also run their small business in the form of sweet shops, kirana shops, small scale industry and so on.
For understanding what exactly is small business we need to first learn what is small business so let us study about it.
What is a small business?
In definition form it is being defined that small business is a business where there is limited no of workers associated with it and it is small in terms of scale of production, manufacturing and selling. In those sorts of businesses the labor associated with it should not exceed 500 people.
All the industries and businesses with less than 500 working people in it are considered a small business.
There are the business and organizations which are working individually without any link or support from the large organizations.
These types of business are usually privately owned businesses who have generally single or few business partners or owners.
Now, before moving ahead on understanding the laws associated with small business I would like to request my readers to please share a blog post with us just like we did on the topic Small business write for us sharing your views and opinion with respect to small business with us.
Laws related to small Business in India:-
In India small businesses are regulated by the various acts in India. But today in our blog we will discuss about key eight laws that every business person should make sure before starting or while running a small business in India and these laws are as follows:-
- Company formation laws: A person while establishing his/her business entity should make sure that he/she should identify the type of business and get it registered legally under that particular name whether it is sole proprietorship, partnership or so on.
- Business finance laws: Finance plays a crucial and important role in every business finance so therefore, it has to be taken care.
- Tax and accounting laws: In India you have to follow the rules as per your business type and income in terms of paying pax and so on and have to keep a strict check on your turnover and tax amount payable.
- Securities law: A small business can even become a part of stock exchange and a company with small business can be listed as SME in Stock exchange of India. So, a person needs to understand the rules of SEBI.
- Labor laws: A person needs to take care of their labor and employees while running a business and have to make sure that they are not breaching any of the law or need of the employee or labor as per the laws applicable on their business.
- Intellectual Property laws: A person needs to check any requirement of IPR laws with respect to their business.
- Information Technology law: It has to be taken care of any thing done online.
- Contract laws and dispute resolution: Make sure of the proper way for resolving any dispute as per the laws.