Legal Challenges Faced by Women Entrepreneurs in India: Breaking Barriers, Building Dreams

Woman entrepreneur navigating a complex maze of legal challenges, highlighting licensing, property rights, workplace harassment, and gender rights in India.

Legal Challenges Faced by Women Entrepreneurs in India: Breaking Barriers, Building Dreams

India’s entrepreneurial ecosystem is buzzing with energy, and women are leading this revolution in countless ways—be it launching tech startups, running sustainable enterprises, or driving social impact ventures. Behind every success story, however, is a journey fraught with unique hurdles. While societal attitudes are evolving, legal and systemic barriers still weigh heavily on women entrepreneurs, often making their climb steeper and lonelier. Let’s explore these challenges, not just as statistics, but as lived experiences—and understand how we can create a more equitable business landscape for women.

1. Women Struggles with Business Registration: Lost in the Paper Maze

Imagine Priya, a young entrepreneur from Jaipur, wanting to set up her handicrafts business. She dreams of selling her creations globally but finds herself caught in endless paperwork, unclear regulations, and complicated processes under the Companies Act, 2013. Without a mentor or legal support, she spends months in frustration, her creativity taking a backseat.

What can help? Simplifying registration procedures and creating one-stop support centers tailored for women entrepreneurs could make the process less intimidating.

2. Financial Barriers: No Collateral, No Credit

Rani, a widow from Tamil Nadu, owns a small plot of land but finds out it’s not enough to secure a loan for her organic farming venture. Despite schemes like the Stand Up India Scheme, she is denied access to credit because of insufficient collateral. For countless women like Rani, the lack of property ownership—deeply tied to gendered inheritance practices—becomes a wall too high to climb.

A possible solution: Expanding unsecured loan schemes and promoting fair property ownership laws will ensure more women like Rani can fulfill their ambitions.

However, schemes like Mudra Yojna have come for aid of women like Rani, by providing collateral free loan of Rs. 10lakhs.

3. Workplace Harassment: Battling Bias and Breaking Stereotypes

For Megha, who employs 20 workers in her boutique in Delhi, ensuring a safe work environment is both critical and challenging. Laws like the Sexual Harassment of Women at Workplace Act, 2013, exist, but implementing them can be a daunting task for small businesses with limited resources. The fear of harassment—whether from employees, vendors, or clients—often makes women think twice before scaling their businesses. How to address it? Affordable legal advisory services and simplified compliance mechanisms could support small enterprises in building safer workplaces.

4. Representation in Decision-Making: The Lonely Seat at the Table

Anita, a tech entrepreneur, notices that board meetings and industry conferences often feel like old boys’ clubs. Despite mandates under the Companies Act, 2013, requiring at least one woman director in certain companies, women remain grossly underrepresented in key decision-making roles. For every Anita, there are thousands of women entrepreneurs who feel unseen and unheard. The way forward: Proactive mentorship and leadership programs can help more women step into roles where they can lead and inspire.

5. Intellectual Property Woes: Protecting Creativity

Pooja, a fashion designer, sees a multinational company selling knock-offs of her designs. Filing for a trademark or patent feels out of reach due to the high costs and complex processes. Stories like hers are all too common among women in creative fields, who often lack awareness about intellectual property rights (IPR).

Solution: Government-sponsored IPR awareness drives and subsidized filing processes for women can help them safeguard their innovations.

6. Limited Legal Awareness: Knowledge is Power

Many women, especially in smaller towns, remain unaware of the legal protections available to them. For instance, Sunita, a home-based entrepreneur, had no idea she could register her business under the MSME Act and access government benefits. This lack of awareness creates a vicious cycle of missed opportunities and unrealized potential.

A game-changer: Community-based legal literacy programs tailored for women entrepreneurs could turn the tide.

7. Tax Laws and GST Compliance: Another Hurdle

Small business owners like Farah struggle with GST compliance, often relying on untrained accountants who make errors that cost her time and money. The complexity of tax laws, coupled with a lack of digital literacy, makes compliance an uphill battle.

What can be done? Easy-to-use tax tools and government-supported training programs can empower women to take charge of their business finances.

A Future of Equal Opportunities

Every woman entrepreneur carries a dream—not just of profit, but of change, inclusion, and empowerment. By addressing the legal challenges they face, we don’t just help individuals succeed; we unlock the potential of half the population, driving the nation’s progress forward. Let’s make India a place where women’s entrepreneurial dreams don’t just survive the odds—they thrive against them.

Disclaimer: This article is provided solely for informational purposes and should not be considered as legal advice. For accurate legal guidance, please consult a qualified professional.

Tanya Shree

These article was written by Tanya Shree A.O.R. of Supreme Court of India.