What the Finance by Sangeeta Shankaran Sumesh

Author:Sangeeta Shankaran Sumesh [Sumesh, Sangeeta Shankaran]
Language: eng
Format: epub
ISBN: 9781645467977
Publisher: Notion Press
Published: 2020-02-21T06:00:00+00:00

Out of the many laws and regulations, only some are applicable to your business. Further, the laws keep changing from time to time. As a business owner, you need to focus on your business. Although you may argue that these are irrelevant to you, you need to be aware of what regulations are applicable to your business. Technically, you are not expected to be a master of the applicable laws, rules and regulations. However, you need to be aware of them so that you can gauge the impact of such laws and regulations on your business, and take the right business decisions.

Apart from laws, there are also certain regulations from RBI (Reserve Bank of India), SEBI (Securities & Exchange Board of India) and FDI (Foreign Direct Investment), just to name a few, which may or may not be applicable to your business. Understand the applicable ones for your business from your financial advisor.

As a thumb rule, before committing and entering into any major transaction, it is always best to sound it off with your financial consultant, tax consultant and legal consultant to know the repercussions of such transactions. This will assist you in taking prudent business decisions, and your advisor can guide you with the required formalities.

While the Companies Act, Income tax Act, GST and so on are well known Acts, there are other Acts and laws that you would have to comply with. Business owners are sometimes not even aware of the existence of such laws and their applicability. During your periodic discussions with your financial and legal consultants, it would be good to check and get an understanding of the general commercial laws.

It would also be good to discuss such matters amongst your network of entrepreneurs. A good idea is to invite experts from some of these areas to give you a guest lecture in such areas during your forums, as it will help the audience at large.

Some of the commercial laws include (but not restricted to) the following:

• The Information Technology Act

• Negotiable Instruments Act

• Prevention of Money Laundering

• The Patents Act

• The Copyright Act

• The Trademarks Act

• Micro Small and Medium Enterprises Act

• Data Protection Act (to be implemented)

There are also industry-specific laws that are applicable, such as the Motor Vehicles Act, Food and Safety Standards Act, The Insecticide Act, Mines Act, or Pharmacy Act. Do check for your industry-specific laws that govern your business.

Employment Laws

One day, SRI received a letter from the wife of a newly married employee, stating that she did not get any money from her husband for running their household. So, she provided her bank account details, and asked SRI to transfer a part of her husband’s salary into her bank account. Should SRI adhere to her request? Legally speaking, SRI could get into trouble if they obliged, as SRI was legally liable to pay only their employee. So, as an employer, one should be watchful of the legal obligations and subsequent implications. Similar scenarios may arise during the course of your

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