How to Legally Start a Record Label? Know these 8 Important Requirements!


Record labels are businesses that specialize in the recording of music and videos. It performs a broad variety of duties in the music business, including the recruitment of new artists, the publication of records, and the enforcement of intellectual property rights. In most cases, these record labels are organized as Limited Liability Corporations (LLC). Wondering how to legally start a record label? Here we will guide you in setting up a record label legally.

The important function of a record label is marketing its brand to reach its targeted audience. There is heavy competition for starting a record label company and it involves planning the business, marketing its label, finding contacts in the film fraternity and getting all legal compliances done.

After deciding the name and logo of your record label services, You must fulfil the legal requirements for starting a record label. If you are wondering how to create a record label name, then think and take inspirations from the famous record labels.

Wondering how to legally start a record label? The first step is to find a suitable brand name and a logo for the record label to create a unique identity and to approach artists to be a part of your label. The next step is to start a website in the name of the registered record label and start to share the music albums through social media. The important step is to promote the label which can be done through social media and other commercial advertisements. The first and foremost step is to comply with all the legal requirements for setting up a record label.

If you want to know how to legally start a record label, then this guide will help you a lot. If you are wondering how to register a record label, then you are at the right place. Here are the essential legal compliances to start a record label legally.

1. Contracts

A contract must specify the proportion of profit sharing, royalties, ownership rights, and promotional promises that will be paid out to the parties. Both parties’ express unambiguous approval of the service given. These contracts are in the written form. A contract strengthens the bond between the owner of the record label and the artist.

2. License

The second need is the acquisition of a record label business license, which allows the record company to protect its music album from being duplicated by rivals. Only after obtaining the music license, can the record label company sell music in the market and protect it from copyright infringement.

3. Distribution License

The primary goal of establishing a record label is to disseminate the album of music. To do so, the specific record label must first get a distribution license, which allows them to sell the albums in retail stores. For this distribution, the brand must seek both physical and digital distribution.

4. Music Clearance Certificate

As the proprietor of a record company, he or she is required to provide sample music. Wondering how to register a record label name? Music Clearance Certificate is one of the important tasks in registering a record label. It is necessary for him to receive a sample clearance certificate from the composer’s publisher before he can begin to record the samples.

5. Producer’s Agreement

If the label is produced by a third party, an agreement should be executed between the record label owner and the producer outlining the costs of the recording session, any advances provided, and any royalties to be paid out. Along with that, the agreement must mention that the credits will be given to the producer either at the beginning or at the end of the album.

6. Permission Forms

The record label owner must get a liability release form or a permission letter from the individual who is the subject of the recording. It is prohibited from depicting any person outside of the organisation, if the material you use is already held by someone else, or if the logos or slogans you use are already in use by someone else.

7. Copyright Certificates

Wondering how to copyright a record label name? For this, before a record company can begin distributing music, it must first file for the rights to the songs’ copyrights with the appropriate authorities. It is necessary to gather information regarding the song’s use, as well as copyright notices, for both the original and cover versions of the score.

8. Insurance

In most cases, the owner must be insured for a variety of reasons due to the high likelihood that he would encounter several unanticipated circumstances. He is responsible for ensuring that the record label is covered by general liability insurance, health insurance for employees, and liability insurance to protect them against creditor lawsuits and claims. If there are any overhead charges, the insurance company will cover those costs as well as the business owner’s policy group insurance costs.


So, these are some of the essential things to start a record label legally. If music is in your blood, you tend to enjoy discovering new bands, and you want to share unique sounds with others, learning how to start a record label could be your perfect gig. If you are wondering how to approach music labels in India? Then before you do that, make sure you are ready to represent yourselves.

Starting a record label (and keeping one afloat) isn’t easy. You will be required to dive headlong into the rough-and-tumble world of the music industry, provided only with whatever knowledge and expertise you already have. The most challenging part is balancing the overarching vision of your label’s brand with the more tedious details of the business end. Even if you’ve got the idea and connections, if you can’t work out the logistics of promotion, royalty allocation, or sync management, then your label is doomed to fail. Wherever possible, bring experienced people on board to fill in any gaps in expertise that you may have.

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