When you're caught up in the excitement of starting a new business, it's easy to ignore the need for licenses and permits. However, licenses and permits are mandatory, and before you can legally begin to operate your business, you need to have all its licenses and permits in place. Additionally, if your business has employees or sells taxable goods or services, you need to register with the taxing authorities. Requirements vary by industry and depend on how and where you conduct business.

Who Issues Business Licenses?
Business licenses, permits, and tax registrations are issued and administered by all levels of government, federal, state, and local, which includes county and municipal governments. In many cases you may need licenses on each governmental level. Furthermore, there are various agencies and departments involved in the licensing process.

There are over 40,000 separate licensing jurisdictions in the United States, and each has its own particular licensing requirements.

Why are Business Licenses Required?
Licenses are required for three main purposes:

To identify your business and make sure you are accountable for your actions
To protect the public health and safety
To keep track of your finances for tax purposes

What are the Pitfalls of not Being Licensed?

Not being compliant with all licenses, permits, and tax registrations could leave you unprotected legally, may lead to expensive penalties, and can jeopardize your business.

With pressure against raising traditional taxes, governments are always on the lookout for alternative revenue streams, which means ever increased vigilance for business license evaders. Many even
resort to hiring third party collectors. The pitfalls of not being properly licensed include:

You cannot open your new location
Your location may be padlocked
You may be hit with costly penalties and interest, or even personal liens

What are some Common Licenses, Permits, and Tax Registrations?
Common licenses, permits, and tax registrations that a business may need include but are not limited to:

Business License
Home Occupation Permit
Zoning Permit
Building Permit
Health Department Permit
Sales Tax License
Sellers Permit
Fire and Police Department Permit
Withholding Tax Registration

Which Licenses does my Business Need?
If you asked this question, you are not alone. This is a question asked by almost every entrepreneur. While you may want to research the requirements yourself, most people find it impossible to do it on their own. You may contact you local City Hall, but that alone will not help you determine your licensing requirements on the county and state levels, and vice versa. Governments do not offer a one-stop-shop where you can go and get all your licenses, permits, and tax registrations.

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     A patent is a set of exclusive rights granted by a sovereign state to an inventor or assignee for a limited period of time in exchange for detailed public disclosure of an invention. An invention is a solution to a specific technological problem and is a product or a process. Patents are a form of intellectual property.

     The procedure for granting patents, requirements placed on the patentee, and the extent of the exclusive rights vary widely between countries according to national laws and international agreements. Typically, however, a granted patent application must include one or more claims that define the invention. A patent may include many claims, each of which defines a specific property right. These claims must meet relevant patent-ability requirements, such as novelty and non-obviousness. The exclusive right granted to a patentee in most countries is the right to prevent others from commercially making, using, selling, importing, or distributing a patented invention without permission.

TYPES OF PATENT
In India only few kinds of patents are permissible and there categories are:

Utility Patent: – This is the most important type of Patent it is granted on the functional aspect of the invention. This type of Patent is most sought after and requires a lot of skill in drafting of the application and prosecuting it before a Patent Office. The functional utility of the invention is protected.
Design Patent:  -This type of Patent is granted to the ornamental or external appearance of the invention. If a design is of functional necessity then it cannot be registered for Design Patent. For e.g the aerodynamic shape of a plane cannot be registered as design patent, as the shape is very important for the smooth functioning of the invention itself.
Plant Patent : –  This type of Patent is granted for Plant variety made through asexual reproduction of plant varieties.

NON-PATENTABLE MATTERS IN INDIA

According to Section-3 of Indian patent act-1970. The following inventions are not patentable-

(a) obvious to natural laws

(b) cause damage to health of any living being

(c) living being or non-living being occurring in nature.

(d) new form of known substance with no significant improvement in efficiency

(e) mixture of two substances resulting in new substance

(f) obvious way of re-arranging things

(g) agricultural or horticultural methods

(i) any treatment for curing a disease of living beings.

(j) plants and animals, biological processes

(k) software, business methods or algorithms

(l) any copyrighted content

(m) any method of performing mental act or method of playing game

(n) a presentation of information

(o) topography of integrated circuits

For Full Details Over Non-Patentable Matter Please Go To Link – http://www.ipindia.nic.in/ipr/patent/eVersion_ActRules/sections/ps3.html

STAGES OF PATENT REGISTRATION IN INDIA

1) Provisional Patent Application – If a person has an IP in its nascent stage as idea or semi-developed prototype, then he/she can file a provisional application or specification in India. By doing the inventor secures his idea for a year’s period.

2) Complete Specification – Also known as non-provisional application or specification in India. This is filed when an invention is completely developed and inventor has all the specific technical data pertaining to the invention. The complete specification is either filed directly (if the inventor already possess all the technical details) or within one year of filing the provisional application. The complete specification is filed with claims and sometimes with experimental details.

3) Patent Publication – After filing the complete specification, the patent gets published in patent journal of India after 18 months from the filing or priority date. The priority date is first filing date for an application, it can be a provisional application date or directly a complete specification date. For more details please visit -http://ipindia.nic.in/ipr/patent/patents.htm

4) Patent Examination – After patent publication, an inventor can request for examination. After which an examiner is appointed to analyze the patent and its viability of getting grant. For more details please visit -http://ipindia.nic.in/ipr/patent/patents.htm

5) Payment of Annuities – After getting grant, an inventor has to file a patent annuities every four years to keep their patent sustained in the patent office.

 IPR Scenario
      
       India, in today’s intellectual era, has shown prominent growth in Research & Development. Trade Related Intellectual Property Rights (TRIPS) agreement and compliance of US and European Intellectual Property Right (IPR) structure has been an area of huge success for India, given their significance and the nation’s developing status. The twenty-first century is viewed as the century of technology and knowledge, most definitely the regime of intellect; and in such an era, a country's ability to translate knowledge into innovation and create wealth will drive its future. Therefore, issues of generation, evaluation, protection and exploitation of IP would become critically vital all over the world.
      
      For businesses, IP protects more than just an idea or a concept – it protects genuine business assets that may be integral to the core services of the business and overall long-term viability. Companies of all sizes across the globe are at risk of having their unique ideas, products or services infringed upon, making IP protection all the more central.
      
      IPR plays a vital role in almost every sector today and has become a driving factor for investment decisions by many companies. The very fact that 80% of patent filings in India are by Multi-National Corporations reflects upon the well-poised IPR regime in India that acts as an incentive for foreign organizations to protect their IP in India. Indian Economy has been growing rapidly for the last few years and it is one of the fastest growing economies in the world. Many Indian companies have started to invest money in other countries and they are expanding their business all over the world. With the rapidly growing economy, eased trade barriers, increased capability of local companies to invest abroad and influx of foreign investment, it is essential to have proper protection rights in place. We believe IP rights are worth protecting, both domestically and internationally and India has taken strong steps in strengthening IPR in the country.

     
MADRID PROTOCOL
        The Madrid system is a global trademark registration system that enables trademark owners to attain protection in several countries by means of a single international application.
        
        India submitted its instrument of accession to the Protocol relating to the Madrid Agreement Concerning the International Registration of Marks, known as the "Madrid Protocol” on 8 April, 2013 with the World Intellectual Property Organization (WIPO). India became the 90th country to accede to the Madrid Protocol. This being one of the most significant developments in Indian trademark law in recent years, providing a system for obtaining international trademark protection that is streamlined and potentially cost-efficient. The Madrid Protocol, which came into existence in 1989 and came into force on 1 April 1996, is a modernized offshoot of the Madrid Agreement. The most important advantage of the Madrid Protocol is the ability to file an international application on the basis of a pending application in a Contracting Party instead of a registered trademark as required under the Madrid Agreement. Another important aspect of the Madrid Protocol is the mechanism to apply for transformation of a failed international registration into regional or national applications while retaining the priority date of the original international registration.
        
Applicant Requirements
        A Madrid application, that allows applicants to choose the exact countries in which they seek protection, can be filed by a natural person, or legal entity, having real and effective industrial or commercial establishment status, or being a domicile, or being a national of a Madrid Union Member Country.

     
PROCEDURE
       
        
         One must own an active application or registration for the trademark in a Madrid Protocol member country. This country must also qualify as the owner’s “country of origin” (where the owner is domiciled, is a national, or has a real and effective commercial establishment). This initial filing is referred to as the “basic application” or “basic registration.” It is important to note that the Madrid Protocol permits the owner to obtain protection solely for the identical trademark and for the same or narrower goods or services as covered by the basic application or registration. For instance, a US based company may use the Madrid Protocol if it owns a US application or registration for the same trademark it wants to protect abroad. 
        
                                                                      Step 2
        
         Irrespective of how old the basic application or registration is (as long as it is still active), the owner may apply to protect that trademark abroad by submitting a Madrid Protocol “International Application” in English, French or Spanish through the trademark office in its country of origin. The International Application must include the details of the basic application or registration, and it must specify the member countries where it desires protection. 
        
                                                                   Step 3
       
          Upon receipt of the International Application, the trademark office in the country of origin checks the application for completion. If no irregularities are found, the trademark office forwards the application to WIPO, else, in case of aberrations, the trademark office would notify the owner of rejection often requesting refilling. 
        
                                                                 Step 4
        
         WIPO, on receipt of the International Application or a Request for Subsequent Designation, performs a review to ensure adherence to all formalities, including payment of WIPO’s official fees. In case of irregularities, the owner if notified is usually given three months’ time to respond. 
        
                                                                   Step 5
        
         Post the due diligence, in case of no irregularities, WIPO would promptly issue a registration date (backdated to the day of filing of the International Application, unless the originating trademark office took more than two months to forward the International Application to WIPO) and the registration number gets published in WIPO’s official gazette. Although the registration is not yet in effect in any country, the owner is said to own an International Registration.
        
        Trademark rights can also be backdated under a “priority claim”, which may be possible if the basic application was filed within the six months prior to the filing of the International Application. If the owner files a Request for Subsequent Designation where an International Registration date and number already exist, WIPO does not issue new ones. The Request potentially entitles the trademark owner to rights in the countries designated in that request dating back to when WIPO received the Request. 
        
                                                                   Step 6
        
         WIPO would then forward a Request for Extension of Protection to the trademark office in each country designated by the owner in the International Application or Request for Subsequent Designation. 
        
                                                                Step 7
        

         Once each designated trademark office receives the request for Extension of Protection from WIPO, it is given the chance to examine the Request in accordance with that country’s usual procedures and decide whether to permit the International Registration to take effect there. The Request is treated like a regular, non-Protocol application in that country and is subject to that country’s usual trademark prosecution process, including publication and opposition by others. If a trademark office does not issue a refusal within a certain period of time (either 12 or 18 months, depending on the country, and unless the trademark office notifies WIPO indicating more time might be needed due to another party’s potential opposition to the mark), then the International Registration is automatically deemed to have effect in that country. If the Request is refused or opposed, then the owner must employ a local attorney to respond. 
        
                                                              Step 8
        
        A significant advantage of the Madrid system is the updation of an International Registration to reflect transfers of ownership or changes in owner name or address, where the trademark owner can file a simple form with WIPO, saving them the task of recording the change in each country (sometimes with special proof of the change). Another enormous advantage (over national registrations) is that the trademark owner has to fill the single renewal form with WIPO every ten years from the International Registration date to maintain an International Registration, not having to file a renewal in each country. The trademark owner can subsequently expand the International Registration’s geographic scope of protection at any time by filing a Request for Subsequent Designation, given the International Registration is maintained. 
     

     
The National Route vs. the Madrid Route
       
        Many offices for filing
        One office for filing
        Many application forms
        One single application form
        Many languages
        One language (English, French or Spanish)
        Many Currencies
        One Currency (Swiss francs)
        Many registrations
        One international registration
        Many renewals
        One renewal
        Many modifications
        One modification
        Foreign attorney needed for filing
        Foreign attorney only needed in case of refusal

     
Advantages of using the Madrid Protocol:
          
        
Less Expensive
        The filing fees under the Madrid Protocol are projected to be significantly lower than that for filing separate applications with national Trade mark office. After registering the mark, or filing an application for registration, with the office of origin, the applicant only has to file one application and pay fees to one office and in one language, instead of filing separately in the trade mark offices. Similar advantages exist when the registration has to be renewed, assigned, or change of name etc.
       
The Management of the trade mark portfolio made easier
        The subsequent management of the Trade Mark portfolio is made much simpler, since an International Registration is equivalent to a bundle of national registration. There is only one registration, hence, one registration to renew and a single simple procedural step to record changes such as a change in ownership or in the name or address of the holder, or a limitation of the list of goods and services.
        
       
Faster Registration
        As the Protocol sets strict time limits (12 or 18 months) for objections to be raised by the designated offices, protection can be secured within a shorter time frame than with a national application. However, this depends upon the national practice in the contracting parties to be designated. In some countries/jurisdictions, national applications may proceed to registration faster than the grant of protection to a national designation under an International Registration. Some thought therefore needs to be given, when considering whether to opt to file nationally or designate under an International Registration, to how long it would take for a comparable national application in the relevant country/jurisdiction to proceed to registration.

     
Paris Convention advantages
        Protocol applications also benefit from the advantages afforded by the Paris Convention in obtaining a priority filing date. The Paris Convention limits the grounds on which an examining office may refuse registration to those applicable in the case of a mark filed directly with that refusing office.
        
        
Subsequent Designation
        The International registration can also be extended to a Contracting Party not covered by the International application by filing a subsequent designation. This is an added advantage to the Trade mark owner, allowing them to choose area according to the expansion of their business. Further, a designation can be made to a Contracting Party which was not a party to the Agreement or Protocol at the time of the International application.
        
        
No formality check required by the National office
        WIPO checks the application against the basic filing requirements easing the National office from any formal verification, or classification of goods or services or publication of the marks. The WIPO informs the office of origin and the applicant, in case of an issue, and the same must be addressed within a three months period to avoid any abandonment. 
        
        Disadvantages of using the Madrid Protocol:
        
Central attack
        An International Registration is dependent on the Basic Application or Registration for a period of five years from the date of International Registration. In case of an unsuccessful Basic Application or a cancelled Basic Registration, the International Registration will collapse. However, all is not lost as there is provision to transform all or part of the rights under the International Registration into a national application or registration in one or more of the designated countries.
        
        
Narrowing of rights
        As the International Registration is dependent on the Basic Application or Registration for five years, any limitations made to the basic mark may impact the rights which can be claimed in the designated countries. For example, if the goods and/or services covered by the Basic Application were narrowed, the goods and/or services covered by your International Registration will also be narrowed.
        
        
Ownership
        The susceptibility of the International Registration on the basic mark for five years from the date of the International Registration is independent of any changes of ownership. Given this, any documentation concerning a change of ownership of the basic mark within this five year period must comprise appropriate warranties from the new owner so that the action or inaction of the new owner does not risk the International Registration.
        
        
Conclusion 
            The Protocol attempts to strike a balance between the need to respect a country’s trademark examination system, an aspect of State Sovereignty, and the need to create an efficient framework for international trademark registration. It is apparent from the above breakdown that the Protocol does not affect any change in the utilitarian provisions of the law within a country. At the same time, even though securing international trademark, protection under the Madrid Protocol has many rewards, it is not a panacea. Each business entity must weigh the pros and cons of filing their mark under the Madrid Protocol in each circumstance and each country, before proceeding. Nonetheless, the Protocol is a new tool in the hands of Indian business entities and trademark lawyers to evaluate the best route to obtain trademark protection in countries outside India. The Protocol provides a system for a cost-effective method of obtaining trademark protection in many markets around the world, enhancing the ability of the enterprises in India to do business abroad in selective territories. While considering the economic growth achieved by India in the last few years and interest among the foreign investors, the accession of the Madrid Protocol is one of the best ways to promote the global trade. Understanding the system and its limitations, and the multiple available options, however, is crucial to developing the best strategy for the international registration of marks. Thus, the step taken by India of acceding to the Madrid Protocol could not have been more appropriate than anything at this point of time, with more and more Indian companies going global.

Could the name of your new business cost you money? Keep your corporate name unregistered and it just might.

Imagine this: you've chosen the perfect name for your brand new widget business. You've made the name easy to say, hard to forget, and you've checked databases everywhere to make sure that nobody else thought of it first. You've invested vast sums of money in marketing materials and storefront signs. Best of all, you've already impressed new widget customers with your amazing services and they are spreading the word that your business—yes, the one with your fabulously unique name—is the place to go for all their widget needs, bar none.

Then picture this: shortly after your widget shop opens for business, you learn that a guy two blocks over is using the same name, for a strikingly similar widget business. That's your name hanging in his window, by God! Customers are getting confused. Your business begins to drop off and you suspect the other widget guy is getting the customers who were looking for you.

Is this nightmare scenario possible?

Sadly, yes—but only if you don't know how to protect your corporate name properly.

The first thing a new business owner must do is register the name of the new corporation. The procedure for registration varies by state, but generally involves submitting some very simple paperwork to the Secretary of State's office, along with a small fee. The Secretary of State's office will not register two businesses with the same name, preventing later businesses from incorporating in your state under your corporate name. Registration with the Secretary of State's office will also legitimize the corporate identity of your business as a legal entity separate from its founders, and will provide evidence to demonstrate that the name is being used in commerce.

Be aware, however, that a business can incorporate in any of the fifty states, so registering your business in your own state provides only partial protection of your corporate name. To provide greater protection, it is necessary to register the name as a trademark or service mark with the United States Patent and Trademark Office (USPTO).

Registering your new business name with the USPTO provides nationwide notice of your claim to the name as a trademark. Additionally, it invokes the jurisdiction of the federal courts in protecting the name. You can apply to register a new business name as a trademark with QuickLegal. The processing of your application with the USPTO may take more than a year, so this application should be filed as soon as possible. Status of your application may be checked online.

You do not need to wait until your trademark is nationally registered to begin protecting your right to it, however. When using your business name on marketing materials or other written matter, you can demonstrate your claim to the name as a trademark by adding a "TM" at the end. This provides notice that you consider the name to be proprietary and should not be "borrowed" by others. Once you register your business name nationally with the USPTO Office, your name receives the greatest possible protection. You may demonstrate this by including "®" at the end of your business name.

Once you have registered with the USPTO, you must file periodic maintenance documents to prove that the name remains in use and renew your registration. If you cease use of the mark for a period of years, or if you fail to file any of the required maintenance documents on time, you will lose your federal registration and the considerable benefits that go with it.

Next comes the business of "policing" your trademark. Online research and investigation within your own industry determines whether your trademarked business name is being used by others in the same or similar business that might cause customer confusion as to your business identity. In that event, a judicious letter often dissuades the newcomer from using the business name. If a letter is ineffective, the matter may need to be resolved through litigation.

The founding of a new business is a busy time, but don't wait to protect your new business name against infringement. Register with the USPTO and prevent customer confusion. Retain the good will that customers have come to associate with your company's name and first class widgets.

Running a company can be financially rewarding but it's never easy. Most companies recognize employees - be they in marketing or sales - as instrumental to a business's success.

It's the smaller details that sometimes get lost or at least temporarily forgotten. Many companies fail to comply with state taxes and other laws. One way to prove your corporation or LLP is in compliance is with a Certificate of Good Standing.

What is a Certificate of Good Standing?

A Certificate of Good Standing is issued by the state and is also known as a Certificate of Existence, a Certificate of Status, or a Tax Compliance. It indicates that your business retains good corporate standing, has paid all state taxes and fees, and has filed an annual report (if applicable).

Many states allow business owners to obtain a Certificate of Good Standing online. In addition to a small fee, you have to provide the following information:

Company name (as filed on the articles)
Date of formation
State of formation
Business address
Registered agent name and address
Federal tax identification number
Unemployment insurance number
A Certificate of Good Standing expires after 30-90 days, depending on the state. This prevents businesses from presenting outdated Certificates when their status might have changed.

When would I need a Certificate of Good Standing?

The state requires a Certificate of Good Standing from corporations or LLPs that want to apply for foreign qualification. Let's clarify that with an example. If your business is located in California but was filed as a Nevada entity, the state of California will require a Certificate of Good Standing. This proves to California that your company is in full compliance with Nevada law.

Also, financial institutions frequently request a Certificate of Good Standing. They need to verify compliance to avoid illegal business conduct.

Why Is Good Standing Important?

Retaining good corporate standing is essential to any business. Without it, a company generally cannot obtain financing, renew licenses or permits, or conduct business transactions. In order to maintain good standing, your company must fully comply with state law.

Getting "bad" corporate standing is as easy as missing an annual report deadline, failing to file an annual report, or sending a late payment for state fees. And "bad" standing could lead to repercussions as severe as corporate dissolution. Retaining good corporate standing also protects you from personal liability for actions of the corporation.

Staying on the Good Side of Corporate Standing

First of all, keep company records fully separate from personal ones. This means having a separate business account, a board of directors, an annual meeting for shareholders, proper corporate recordkeeping, and annual report upkeep.

While not as glamorous as other aspects of running a business, retaining good corporate standing is just as important. In fact, it may prove even more important than your bold new business moves. Without it, there might not even be a company to run.

Starting a new venture is an exciting event. It can be so exciting that sometimes people forget to consider some basic first steps. If you're starting a new business, congratulations! But make sure you take a moment to think about protecting your company in the long term. Here are some tips to consider.

Incorporate Early 

There are many advantages to setting up a corporation or LLC, and some business owners see it as the first step in opening their enterprise. But others don't think about the advantages of incorporation until it's too late. That is, when faced with a situation in which incorporation provides invaluable protection. For example, if your business is incorporated, your personal assets have protection in the event your company is sued by a creditor or client. Incorporate early to take advantage of this protection.

Get a Business License 

To legally practice many occupations or operate most types of businesses, owners are required to obtain local, state or federal licensure as applicable. This is true even for many home-based businesses. Zoning permits may also apply, especially if you see clients onsite. It pays to investigate the requirements at your local city hall or county office before you begin. In most cases, business licenses are relatively inexpensive. But operating a business without a license can be expensive—there may be costly fines.

Prepare Contracts, Including a Non-Disclosure Agreement 

Even if you do most of the work yourself, eventually you'll probably hire some help or subcontract some work. Make sure you're ready when that situation arises by having standard contracts prepared ahead of time. Your contracts should state the basic terms of the job and the payment details. Contracts should also obligate employees or subcontractors to maintain confidentiality about your business—make sure you include a non-disclosure agreement to ensure people doing business with your firm know that all trade secrets and/or business plans are protected information. QuickLegal has a variety of downloadable legal forms to help you protect your business.

Protect Your Logo 

A logo is more than just a graphic image—it's a unique part of your company's identity. As your business grows, your logo grows in value because it represents your company's promise to your customers. Make sure you build that value for your own business and not someone else's: If you don't legally protect your logo, a competitor can use it to gain business that you earned.

Also, make sure the contract you enter with your graphic designer specifies that you will own the rights to the logo and will be entitled to trademark it.



Get an Employer ID Number (EIN) 

It's a good idea to obtain an EIN from the Internal Revenue Service. An EIN works like a Social Security number for your business. It's required under many circumstances—for example, if your business is an incorporation or a partnership, or if you have employees. But even if you operate a sole proprietorship, an EIN can be a good idea because you can use it to safeguard your personal Social Security number, which you might otherwise have to disclose for payment purposes. QuickLegal can help you obtain your EIN quickly and easily.

Are You Ready to Start Your New Business? 

Remember, before you go forward with your business plans, it's a good idea to make sure you've taken care of the basics. Consider these steps, and you'll be well on your way.

Concepts Behind One Person Company

1. One share holder:

2. One Director

3. Nominee

4. Taxation

5. Freedom from compliance

6. Related Party Transactions

7. Process of Incorporation:

8. Conversion from one person company to private limited and vice versa

Conclusion: