Legal Compliance in FinTech

Legal Compliance in FinTech

The future of the Fintech business in india is increasingly shining and growing due to the expansion of start-ups within the Fintech industry, the penetration of mobile users, the continual construction of digital networks and therefore the streamlining of financial processes in lot of more industries

FinTech’ organizations are financial establishments which, through the digital media, give financial help, structure and management services to different companies and individuals. A fintech company varies from a bank and additionally needs in-depth preparation and guidance to begin a finance start-up or FinTech in India.

There are 4 types of online finance companies providing services:

  1. Payment services: mobile payments and e-wallets.
  2. Lending resources from Peer to Peer (P2P).
  3. Retail banking services, Customer to Business (C2B) and Business to Customer (B2C).
  4. Personal consulting services for finance and savings.

Legal requirements and formalities for a start-up that wants to
set up FinTech business in India:

Choosing the Business Structure: deciding the business structure is the start in launching online base finance business. For a FinTech, there are three types of market structure:

  1. One Individual Corporation: An OPC is a blend of sole proprietorship and business, where the company has only one owner but operates as a business.
  2. Limited Liability Partnership: An LLP is a mixture of a partnership and a company, where the limited liability of all the partners is limited to their respective shares only.
  3. Private Limited Company: In a PLC, as it has its own rights and liabilities independent from the owners, the directors and shareholders of the company have no personal obligation to the creditors of the company. This is the right framework for India’s financial technology market.

Apply for GST

To register for GST and get GSTIN for and business industry and corporate company, an online finance company or finance start-up is required. The GST offering has introduced the previous indirect taxes, just like service tax, excise duty, etc.

Legal Contracts and Agreements:

  1. Co-Founders Agreement
  2. Intellectual Property Licensing Agreement
  3. Privacy Policy
  4. Website User Policy
  5. Terms of use for mobile app users
  6. Vendor Agreement
  7. Product Development Agreement
  8. Employment Agreements

Get Intellectual Property:

Trademark, Patent and idea comprise intellectual property. To preserve its brand, slogan, website, mobile app, etc., an online finance company must By registering them and gaining intellectual property rights, each of those can be secured (IPR).

Licensing:

Trademark, Patent and concept comprise intellectual property. To safeguard its brand, logo, website, mobile app, etc., an online financial company needs to Through registering them and gaining intellectual property rights, of these can be secured (IPR).

  • Payment service
  • For P2P
  • For retail service providers
  • For Financial Management/Investment

Domain Registration:

A technical company needs a presence on the net. Therefore, the highest goals for the online finance sector are to possess a domain|a site name and a completely established website. To broaden its subscribers and customers, a financial start-up can also set up a mobile app.

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