Business Laws you should be aware of

Posted on December 10, 2019October 6, 2020Categories Education, Entrepreneurship, Executive Courses, Indian Economy, Mergers & Acquisition, Mutual Funds, Public policy   Leave a comment on Business Laws you should be aware of

Your business might be a separate entity on paper, but it is always going to be close to your heart. After all, your business is the bread and butter for all practical purposes.

So, what makes a business run smoothly in the longer run? A lot of you might say “sales”. Of course, sales is important and growth in sales every year is a positive sign. This is only possible if the business is doing business ethically as per the law of the land.

Business’ engaging in unethical practices come under the radar at some point of time, leading to a mega boycott by its consumers, suppliers and Government – which eventually making it a business from the past.

Different countries have different business laws. There are a few laws that are common, and a few that are different in each and every country.

Following business laws is very important as –

  1. You want your business to continue for a long time
  2. You don not want to end up in jail
  3. Your business has to be eligible for local, national and international contracts.

When in India, there are few business laws that every single business owner must know.

Business Formation Law

Before you start a business, you need to choose the type of business you wish to run. Are you planning to run a company that is public, a business with limited liability, sole proprietorship, or family business.

Once this is done, the owner must register his company with his regional Registrar of Companies (RoC).

Finance laws

Business runs on money and during the early days it is important to invest sufficient amount of money to keep your ship afloat.

Mainly, there are 3 ways to fund your business:

  1. Equity: By selling equity shares of your business, you bring cash in return which will help you grow your business.
  2. Debt: You incur a debt by taking out loan for your business at a fixed interest rate.
  3. Self-finance: This doesn’t need an explanation. You take money from your savings to fund your business.

Employment laws

You might be the only person working for your business during its early stages, but eventually when your business grows, you will have to start hiring.

When you have employees working for you, you must abide by labour laws and have agreements in place to ensure there are no conflicts in future. Ensuring you meet all labour/ employee law requirements may sometimes require you to hire consultants.

Intellectual Property Laws

If you have A business that invests heavily in research and development and builds new proprietory products – you need to be careful about Intellectual Property laws. It is necessary that you have a copyright, trademark, or patent it so that others cannot copy it.

Information technology laws

The use of technology in almost every single business is mandatory. It is also important to adapt to new technologies so that your business doesn’t lose out on efficiency.

Technology is the life blood of businesses now, but that comes at the risk of online threats. This is why the Government of India has introduced the IT act so that your identity and privacy is legally protected.

Contract laws

This is one of the most important laws to know. The laws that we spoke about until now thrive because of the contract law. This is a contract where both the parties unanimously agree to the stipulated conditions mentioned in the and agree to work together.

This needs to be communicated rightly so that there’s no dispute later on.

Conclusion

All major business players in the Indian market are known to abide by business laws to conduct business in India and the World. Only with clean books of accounts can the local and national population trust   a business. This is important for bidding for local, national and international contracts. This ensures longevity and a stable growth for the business.

BSE Institute Limited’s Executive Program in Securities and Business Law is all you need for building a stable empire, built on sound legal guidelines and trust. Join now!

 

Italy using blockchains to support and protect public sector networks

Posted on April 7, 2017Categories Blockchains, Cybersecurity, Public policy   Leave a comment on Italy using blockchains to support and protect public sector networks

Peer to peer blockchain networks, which threaten to disrupt the current form of data storage and sharing, may soon become common sooner than you think. Few local and regional governments in Italy plan to use blockchains to bring about greater transparency, security and efficiency in executing Government work. Government servers across the World have been under attack for a better part of this decade. This is because a lot of data related to multi million and billion dollar tenders and citizens personal information is stored there and is at risk.

By using blockchains, Government’s believe that they can bring down the cost of maintaining their networks and safeguard their data in a better way. Pilot projects are being conducted as we speak in Lazio, Italy. The local Govt plans to implement a law that will make it compulsary for all Govt offices to use blockchain technology for storing and sharing data.

Blockchain technology can replace the decade old networks and systems that private corporations and Govts use. This presents a huge opportunity for entrepreneurs who can provide the hardware and manage the systems for the Governments. These sectors can create millions of new jobs just in India.

Multiple currencies and exchanges in one country will soon be common

Posted on April 5, 2017Categories Artificial Intelligence, Blockchains, Cybersecurity, Digital currency, Global finance, Public policy   Leave a comment on Multiple currencies and exchanges in one country will soon be common

Digital currencies are on their way to becoming a major way of trading in an economy. What’s more surprising is that each country’s economy may now be familiar with using 2 or three currencies! With countries all over the World experiencing rapid digitalization of their economies with less cash being used, this day may not be too far. Let us ask ourselves, what is money? Money today is not the number of notes, but it is a number in your bank account, in your phone. Money is a number that represents what you hold in terms of shares, securities and other investments. All currencies are numbers that have a certain value. A Dollar, a Pound, a Rupee and a bitcoin, all have separate values.

A bitcoin is a digital currency that is still very new to the World and it’s just a matter of time before we get used to it. Bitcoins are gaining popularity mainly because trading these is very safe and secure. It is practically very difficult to hack into a blockchain system that hosts the bitcoins and steal this money. Credit card companies, banks, NGOs and other financial institutions face many cyber-attacks everyday, and just one of them has to be successful to cripple the institution! Hackers have stolen Billions of Dollars of money and other financial and personal data in this way. Bitcoins have never been hacked or stolen till date. Another advantage of Bitcoins is that they are completely encrypted and no personal data is exchanged when a payment is made or received. Thus, even if there is any security breach, the chances of a user losing confidential information are very low.

Digital currencies operate in a very different way than traditional banks. Banks rely on a single or a few servers, which when hacked cause chaos. Digital currencies operate with a blockchain network that is a peer to peer system. Making this transition is what will take sometime, but once done, it is sure to change the way the World of Finance operates. Japan is one of the few major economies to recognize Bitcoin as a legal payment method and tender. It will be building a proper exchange, other requisite infrastructure and shall begin training employees for the same. The Swiss too use Bitcoins quite freely. Creating an infrastructure for this currency is bound to create a lot of jobs in this sector that shall change the way we do business.

Artificial Intelligence can help Make in India

Posted on April 4, 2017Categories Artificial Intelligence, Entrepreneurship, Public policy   Leave a comment on Artificial Intelligence can help Make in India

Make in India has been highlighted as a major cornerstone of the current PM Modi led Government to create jobs and promote a better way of life. What many peopleare worried about is Western countries coming up with better technologies that can do the same job in a much cheaper way. What has been aptly recognized by our Prime Minister here is that we need to train our workforce appropriately with the right skills in order to be competitive for the decades to come. Being conversant with AI tools is one such thing.

Imagine the factories that existed during the Industrial Revolution and compare them to the ones now. Current technology is much safer, simpler, economical and faster to use. The same thing applies for technology that will improve manufacturing and is yet to be applied fully. AI can allow a single person to operate and manage more machines at the same time. Just like a person who does many things from his work station, a factory worker can have a work station from where he controls the various robots who do the work that he intends to. Technology today is allowing people to be more productive. Imagine AI letting a factory predict or know when a vendor needs more product and the factory beginning production with just an e-mail, or the factory being able to track the delivery of goods right till it is opened by the client.

Using AI robots who can do the job can allow people to be more productive and can allow factories to be open 24*7. AI can also eliminate any human error that could happen and may prevent any accidents. Manufacturing finally is all about quality, costs and speed of delivery. If India is able to provide a quality product in record time with a competitve price, what would stop us from being a manufacturing hub? Hence, being skilled in the right trade is of utmost importance!

 

Bengaluru civic body to use digital and fintech solutions to help citizens

Posted on April 3, 2017Categories Artificial Intelligence, Public policy   Leave a comment on Bengaluru civic body to use digital and fintech solutions to help citizens

The Bengaluru civic body, known as the BBMP, has announced that it will allow the citizens of Bengaluru to upload their khata, .i.e. their revenue documents online. This document is needed to record the details of a property, which helps the BBMP assess the amount of property tax payable. The cash rich BBMP, which has a budget of over Rs 9,241 crores, has faced many complaints from citizens who faced a lot of difficulty in getting their khatas filed at local BBMP offices.

With an online system in place, citizens can now upload all the documents and pay their taxes from the comfort of their residences. All citizens who plan to build new structures on their plots of land, can also upload their building plans online. Approvals for the same will be given online. Imagine waiting for months to get your house plans approved by the civic body in a short amount of time. As corporations move more of their work online, most of the payments will also be done online. Other services which require permissions from the BBMP have also gone online. They are – permission for road cutting, applying for biirth/ death certificate, renewal of trade licenses, etc.

This is an excellent step taken by the BBMP in order to promote a digital and a cashless India. There are very few firms today that are prepared to support the Government’s various e-governance initiatives. Imagine the kind of opportunities that exist in the public policy sector for all those who are prepared with the right skills and qualifications.

Artificial Intelligence will be a boost for the Government

Posted on April 1, 2017Categories Artificial Intelligence, Public policy, Retail banking   Leave a comment on Artificial Intelligence will be a boost for the Government

Artificial Intelligence (AI) is defined as the science and engineering of making machines intelligent with computer programmes. AI based apps like cab aggregators, digital assistants, etc have made a big impact on our lives. We base many of our decisions on these apps. This has created a lot of jobs, innovation and has attracted a lot of investment in sectors that did not exist earlier. This however, is just the private sector! Imagine the impact that AI can have if the Govt decides to use AI in each and every sector and ministry.

A major problem that people in remote rural areas face is that; they don’t get the subsidies and benefits, due to pilferage and leakages in the system. Real time monitoring with AI of goods sent will reduce leakages in the system and allow the villagers to get their benefits. Alibaba is using this system in China to prevent spurious brands of inferior quality from being sold and delivered on its system. The Govt is using financial technology and AI by promoting apps like UPI and BHIM, but still there is a long way to go. National initiatives like Skill India, Make in India, Digital India, etc can also benefit vastly from this new AI infrastructure that will come up.

Prime Minister’s pet schemes like the crop insurance schemes, computing a soil report card, assisting farmers in deciding crops, etc can benefit greatly from AI. Western countries have used AI in every walk of life. Asian countries are not at par with Western countries in terms of AI implementation, but we are not too far behind as it can still be done easily with a little investment. The Govt is taking positive steps by setting a basic infrastructure to implement this AI setup. Creating this huge AI infrastructure will need a lot of planning but its implementation and integration into our daily lives will result in a lot of convenience. Such a big infrastructure will also result in employment of crores of qualified professionals.