Legal requirements1
- 2. INTRODUCTION : Legal requirements for establishing a new unit & management of a new venture or setting up of small scale enterprise, entrepreneurs comes across a no. of situations to follow laws of the land. Entrepreneurs should be careful to obey the legal formalities,procedures,policies & plans for good government.
- 3. Toidentify many of the legal issues likely to arise in the course of starting and growing a company and to suggest strategies not only for ensuring compliance with law, but also for using the law and the legal system to increase predictability, maximize value, and manage risk.
- 4. Local governments may impose licensing or permit requirements for businesses that impact community health or the environment. Itmay also be necessary for you to pay local property taxes.
- 5. Newreport argues that government tax changes will reduce the incentives to become an entrepreneur. Thetop marginal tax rate on income earned, saved, invested in a company and then passed on to children is currently 90%. With the forthcoming 50% top tax rate, that will rise to 92%.
- 6. The measure will take 20% of the money entrepreneurs are left with the current 40% top tax rate. Inheritance Tax, in particular, may reduce the extent that entrepreneurs can obtain finance without the risks that come with a bank loan. The tax system undermines the large rewards that justify the risks attached to starting a new business.
- 7. Everyentrepreneur is preoccupied with success. But to succeed, we must first understand failure. Thisis not to suggest that failure is something to strive for. On the contrary, we want to understand why failures happen,so that we can better avoid them.
- 8. Ashuman beings, we actually learn a lot more from our failures than our successes. This is because our failures are more memorable to us. Aspainful as they are, lost opportunities are constant reminders of our mistakes. When we succeed, we may become sloppy. When we realize we have screwed up, we vow not to do it again.
- 9. A wilful defaulter is a borrower who has defaulted in meeting his payment/repayment obligations to the lender even when he has the capacity to honour the said obligations.