In India, you need several vital documents to make sure that your business is legal and protected. Following is the list of essential legal documents you need to start a business in India:

• Business Registration Certificate

The first document you need to start a business is to get your business registered. This document is a formal sign of your business establishment. Depending on the type of business (sole proprietorship, partnership, LLP, or private limited company) you choose, you should register with the appropriate government authority.

• GST Registration Certificate

In the year 2017, the Government of India replaced  VAT, service tax, and excise duty with Goods and Service Tax. GST registration certificate allows your business to collect taxes from their customers on behalf of the government. Once your turnover exceeds the specified limit, you must register for GST and get a GST registration copy. This certificate is required to report GST returns and request input tax credits.

• Employee Contracts

An employee contract refers to a legally binding document that serves as an agreement between an employer and an employee. A contract specifies the nature of employment, which includes job descriptions, obligations, levels of pay, time schedules for working as well as methods of resignation. Employee contracts are crucial since they eliminate disputes and promote compliance with labour laws.

• Contracts with Suppliers and Customers

These contracts outline the conditions under which products will be supplied, payments made, delivery dates and quality levels. Detailed supplier and customer contracts help in sustaining good business relations as well as reducing conflicts. 

• Non-Disclosure (NDA) or Confidentiality Agreement

Details regarding NDAs or confidentiality agreements are required to protect business secrets. These ensure that employees, partners or other stakeholders do not release confidential information to third parties. This is mainly meant to protect trade secrets and intellectual property. 

• Employment Agreement

Employment agreements are as important as employee contracts. These can include non-disclosure agreements, offer letters, non-competition clauses, intellectual property rights, and other things that an employee is supposed to follow during employment and even after it.

• Service Level Agreement (SLA)

When your company offers services to clients, Service Level Agreements (SLAs) become very important. It is concerned with setting clear expectations about the level of service that needs to be maintained by a particular provider. This can include metrics around performance targets, penalties for breach of contract as well as mechanisms of dealing with conflicts.

• Partnership or Joint Venture Agreement

If your business is a partnership or a joint venture, you need to have a formal Partnership or Joint Venture agreement. It explains the roles of each partner and their respective responsibilities, how profits will be shared between them and when they decide to leave the venture. These agreements provide clear guidelines for participating parties which help in collaborating effectively with others to evade misunderstanding.

• Shareholder Agreement

For a company that has several shareholders, it is necessary to have in place a shareholder’s agreement. This document stipulates the rights and duties of shareholders and provides mechanisms for settling disputes and running the business.

• Lease Agreement

A lease agreement is essential if you rent an office or commercial premises for your business. A lease agreement details the rental terms including rental fee, period of tenancy, security deposit and what both the landlord and the tenant should do.

• Exit Agreement

An exit agreement is a document that outlines the process when a partner, investor or a key employee leaves the organization. The exit agreement outlines the terms of the exit, valuation of shares, transfer of responsibilities, and any financial settlements. The major advantage of having an exit strategy is that it ensures proper continuity of the business.