Legal issues in setting up a business

Abstract

To understand the legal requirements of start-ups and perform a mapping with an established manufacturing firm. Further, to delve into the issues they are currently facing and how they are handling these issues. India is known for its notoriety with regard to the numerous rules and regulations associated with setting up of businesses. India ranked 134 out of 185 countries in the list of countries offering favourable business conditions (Appendix). This implies that despite being regarded as one of the most promising economies for growth, it ironically slows down the path leading to growth. There are multiple hurdles faced by a business in each and every phase of its lifecycle: from starting up to growing into an established firm. Businesses have to comply with multiple legal requirements to even perform daily operations. Through this report, we aim to develop understanding of the core of the issues faced by businesses by comparing the legal requirements of setting up businesses across various domains. We will study the legal essentials for ITC cigarette factory, an established business with major channels set in place and the issues faced in that regard. We will perform a comparison of these requirements with various start-ups: operational as well as non-operational. From this, we intend to analyse the magnitude of issues that businesses across the country face in this regard. Apart from this, we will also consider the geopolitical developments, historical laws, recent changes and developments and how they have contributed to the present day situation and how do we expect it going forward. We have divided the report into the following sections – objective, rationale, primary research findings. The secondary research observations to a certain extent have been included in the Appendix for reference.