Comparative Analysis of Legal Challenges Faced by Startups in India and Bangladesh: The Way Forward

Abstract

This article carries out a comparative study to show legal problems faced by startups in India and Bangladesh, two countries where startups are also seen as an important socio-economic force. It examines the legal complications that come with regulatory uncertainty, compliance burdens, intellectual property protection, taxation, contract enforcement, data privacy, consumer protection and access to finance and markets in both jurisdictions. The Startup India initiative in India gives broad definition of startups and grants various benefits to them but still they face regulation and compliance problems due to variations across areas within states and sectors. Moreover, they encounter challenges while raising funds or acquiring intellectual property rights. In Bangladesh, startups have lesser clarity about their legal status or benefits from it than they do about other issues such as market access or IP protection. Therefore, for these purposes this work suggests several possible legal reforms. Some of the reforms include harmonization and coordination of laws, easing compliance mechanisms, promotion of intellectual property rights as well as protection, establishment of comprehensive legal framework for AI and startups, creation of specialized legal bodies in this area and development of favorable legal culture and ecosystems. These reforms seek to make the legal environment more transparent, consistent and supportive for startups in India and Bangladesh. Thereby, promoting innovation as well as economic development in the startup industry.