Based on data from Startup Ranking in 2019, the world’s startup research institute, which released information on the number of startups in the world, occupies a position in the top 5 countries with the most startups, around 2,080 startups recorded. There is a significant increase compared to the previous year which was only 992 startups. Given the high growth of startups, this also creates a large number of failures from the development of the startup business. This is of course a concern for entrepreneurs who are pioneering startups. One of the factors in the failure of a startup business in developing its business is the lack of knowledge of legal aspects experienced by startup business entrepreneurs.In setting up a startup business, several things need to be considered if your business does not want to be exposed to legal risks:
Do not have legality documents
In establishing a startup, there are several documents that need to be owned, including a Trade Business License, Taxpayer Identification Number, Business Identification Number, Company Registration Certificate, Company Domicile Certificate. Even though by having the legality of a business entity, your business will be considered more profitable and when investors enter, it doesn’t take much longer to establish your legal entity.
This also applies in hiring employees. As a business owner, you must pay attention to your employees, from the hiring process of each staff to ensuring that they have the right employment benefits. Make sure that your business is in contact with the best employment law firm New York City that will guide your business in creating employment policies that are mandated by law.
Waiver registration of intellectual property rights
When you set up a startup business, Intellectual Property Rights are important in the development of your business, trademarks are intangible assets whose value can continue to increase following the company’s valuation. Your startup business needs a trademark to differentiate it from other businesses. This makes it easier for consumers to recognize your product. By registering Intellectual Property Rights, it is hoped that your startup business can mitigate the risk of brand misuse by other parties.
Ignoring the Responsibility of Paying Taxes
Startup establishments have to fulfill their tax responsibilities as well. If you are negligent in paying taxes, of course the startup business will be subject to criminal sanctions. Even if your startup business does not report an annual tax return every year, you will be subject to a fine of millions to hundreds of millions based on the Law regarding the Third Amendment to the Law on General Tax Provisions and Procedures. Don’t let this become an obstacle in developing your startup business.