Business Law: New ways for laws to support innovation

Business is a form of occupation, which help individual to earn their livelihood. Law means an official rule of a country or state. In simple word law means rules and regulation. Business law is the set of rules and regulation which are form to manage and govern business. Business laws is the law which governs business, commerce and industries. In simple word we can say that Business laws are the laws which are used to govern to smooth running of business. In general terms, there are five types of laws- Civil law, criminal law, common law and statutory law. Business laws is the part of civil law which deals with both the issues, private law issues and public law issues. What is private laws and public laws? Private law- private law is a part of law which deals with the relation between individuals. Public law-public laws deals with the relation between individuals and the state Business laws is also known as commercial law, it is the body of law which governs business, commerce and industries. In simple word commerce means buying and selling of goods and services in a manner that an indivisible earn money. Business is a form of occupation or we can say that sale and purchase of goods and services to make profit. There are many types of businesses, some of them discuss below- Sole proprietorship – it is a business organization which is owned, managed and controlled by an an individual. In this form of business all the profit and risk bearer are only one. Sole means only and proprietor means owner. Therefore, sole proprietorship is the one who is the only owner of the business. In this form of business there is no separate law to govern it. In some cases one may require license. In the eyes of law there is no difference between in the owner of the sole proprietorship and business. Owner is the one who is responsible for the activities of the business. Partnership – partnership is a form of business between two or more person. According to Indian Partnership act 1932 partnership defines as a relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all. The partnership is governed by the Indian partnership Act 1932. Partnership come into existence by a formal legal agreement. The agreement between the partners may be oral or written. The written agreement between the partners is known as partnership deed. In the presence of partnership deed the dispute between the partners solved easily. Joint stock companies- it is a business organization that is jointly managed by its shareholders, the shareholders holds certain amount of stocks in the company which is represented by their shares. Apart from sole proprietorship companies is totally different. Companies are the artificial person. It means in the eye of law it is an artificial legal person. It existence is not depend on any member. Members may go and come but the company exist. Any one can sue the company and sued by the company. Like natural person it cannot breathe, eat, talk, run, and sleep and so on. It is not a natural person but its right are like natural person. It is called artificial person. It has its own legal entity or separate legal entity from its members. Company used its own sign but its sign is known as seal. Every company has its own seal, any document which does not carry the common seal of the company is not binding on company. It is compulsory to incorporate companies under the company’s act 2013. Multinational companies- multinational companies in short known as MNCs. IT is a business that has operations in more than one country. If a business sells its goods and services to more than one country, it does not become an MNC multinational companies. For being a multinational companies the business has business operations in two or more countries. What innovation is? Innovation means creating new things, new ideas, new creations and many more things. Innovation is very important in succeeding in any field. For existing and growth of business innovation plays a vital role. Without new things, new creation and new ideas succeeding in any things is impossible. As we know innovation is not easy there is many challenges faced by individual to go on ceiling (position once wants). World are dynamic in nature. Every day new things are created, invented and discovered. If we don’t shift to new things from traditional things then it destroy the labor of creation, invention and discoveries and many more. Changing are the nature of life just like child born , become young enjoy his/ her life, become old and died. Government has to make laws which support innovation. With the changing of times government has to make changes in laws or Laws has to be made in such manner that support innovation. In business, there is no minimum qualification is necessary. The reward for business person is profit of business. The money or capital required to invest in the business as per the size of the business or nature of the business. Transfer of business is possible with some legal formalities. Example of businesses are shop, factory etc. The factor kept in mind before choosing the type of business: The first things to be decide in business is nature and size of business. Size of the business and scale of its operation is important factor in business. Another important factor is ownership of the business whether it is a sole proprietorship, partnership or a joint stock company. Location of the business is the main factor and play a vitol role in earning. For example, opening of stationary shop is profitable when it open near schools. If individual open stationery shop near hospital then it incur losses for the business. Financing or investing a capital in business is another important factor keeping in mind before starting any business. Capital is required for investment in fixed assets as well as current assets, fixed assets like, land, building, machinery and equipment. Current assets like raw materials, books, debts etc. apart from this there are many factor kept mind before investing in any type of business. Authored by - Surbhi Rashmi

Business Law: New ways for laws to support innovation