An analysis on GDPR for startups



GDPR is General Data Protection Regulation. The main aim of GDPR is to safeguard the unique data of the residents of European Union (EU) citizens and ensure their basic right to privacy. Enterprises are still trading with the massive concept of privacy law.

Personal data are the details that, consequently, can recognize any living being. Some examples are name, address, phone number, etc. Profits, details regarding past investments/acquisition, well-being, and online conduct are also contemplated as the personal data as this can recognize any person.


On the other hand processing data means manipulating the data through a computer. In simpler words, it means gathering, arranging, categorizing, utilizing, keeping, splitting, revealing, deleting, and demolition of the data. Every entity which exercises this personal data, which every organization has, the workers and the consumers, must make certain that this personal data will be used to fulfill the conditions of GDPR.

Apart from looking for lenders, building the base for your consumers, and making your products and services better, data protection is also important for your startup.

Every entity which is operating in the European Union should make GDPR compliance a priority. Consumers, lenders, and the partners of the business need to check whether your privacy practices are lined up with the law or not.

Facts related to GDPR-

  1. The used personal data must be in line with amiable principles.
  2. personal data must be legal.
  3. The personal data must be deferential to individual rights.
  4. The personal data infringement/violation must be communicated within 72 hours.
  5. The entities are themselves accountable for their traders.


What is the need for GDPR-

For everyone, personal data is very important. There is no other way related to it. Only data makes it feasible to develop company models, obtain a perception of the consumers, manage productive campaigns of marketing and grow the products as well as services. In the last few years, everyone has seen the headlines of breaches of personal data from big corporations like Facebook to eBay and Uber. The personal information of millions of people was crippled. GDPR clearly expresses that the personal data of an individual belongs to that individual only, and also imperils to inflict considerable penalties for those entities which are not following the law. GDPR is planned to protect these conditions and is a betterment of the past data protection regulation.


Is it true that GDPR compliance for startups is different?


No. The GDPR can be applied to all those organizations that process the personal data of EU residents, including the third-party processors. It can help the startups to take advantage in two situations:

Businesses that have less than 250 employees in number need not maintain any kind of data inventory or any record concerning data processing, until and unless the processing is keeping rights of individuals at risk, or it involves some special category of information such as race, religion, sex, political opinions or health. Anyone can go through ICO guidelines to get a clear understanding of the criteria.

The Data Protection Officers (DPOs) should be appointed at places where there is a need for large-scale processing of personal data. It is not normal for any startup to analyze such large volumes of data for the requirement of a DPO. Nevertheless, if you are considering scaling your business up then you can think of appointing a DPO but temporarily.

When it comes to considering GDPR, the head-on may seem quite difficult at first. But, we all can have a proper understanding of GDPR by reading a guide to GDPR. Generally, some basic principles need to be kept in mind while designing or making organizational structures for the building, so that the clients, customers, users, or employees can relate. These principles are:


  1. Right to erase (in this, it is permissible that the data can be deleted from the system)
  2. Right to restrict processing (Access to the data needs to be restricted and no one can do anything without the consent of the user)
  3. Right towards data portability (It should be made possible for the users to download machine-readable and exportable files of the data that is collected and processed)
  4. Right to rectify the data (Edit buttons needs to be there for data fields)
  5. Right to be informed (It means to get rid of long terms and conditions and provide clear and concise information)


Principles for a compliant GDPR are-

  1. Transparency of data processing-

Entire data that is getting processed needs to be done on a legal basis. You should provide a valid reason for the collection of data in the first place. Moreover, those with whom the data is being collected should be informed properly that their data is getting collected.

  1. Limitation of the purpose-

It means that you have a valid reason behind collecting all the data.

  1. Minimization of data-

It generally signifies that only the data that is necessary needs to be collected and all the unnecessary data should be ignored.

  1. Accuracy-

All the personal data that is taken from individuals needs to be accurate and updated regularly. Accuracy and regular updates are important as long as the information is stored.

  1. Confidentiality-

It is also a responsibility to ensure that the data that is collected remains secure. This signifies that there is a need to implement technical processes like end-to-end data encryption of the site, two-step authentication for those who logins, firewalls, etc.

  1. Accountability-

As the controller of the data, you are responsible to show that your organization is acting following consumers’ all the principles that are set. It simply means that you should have proper documentation for everything.


Important steps for the startup towards GDPR compliances are-

Important steps for GDPR compliance

  1. Conduct a Personal Data Audit-

The first and the most important step in the path of GDPR compliance must be to make your entire personal data from your business controls out. It also needs to be ensured that you have a detailed understanding of what personal data you are collecting and handling.

GDPR also has a proper definition for “personal data.” Any kind of information which is relating to an “identifiable person” can be treated as personal data.

1. Recognize the principles of data processing-

An important segment of GDPR compliance is recognizing and executing the principles of GDPR data processing.

2. Ascertain your legal foundation for data processing-

GDPR allows personal data to be processed on these six legal foundations only. These lawful foundations are valid and legal grounds through which you can process personal data.

An important step regarding this GDPR compliance is ascertaining your legal grounds for proceeding with every kind of personal data under your control. Never collect or even use any type of personal data except if you have a legal basis for doing that.

a. Consent

Consent is the primary legal basis to avail anytime you want to offer people a legitimate and a free choice about how you can use the personal data of others.

b. Contract

The legal basis of a contract is satisfactory which are mentioned below, in case you need to process the personal data,

  1. To fulfill the duties which parties to the contract are answerable through the terms of the contract.
  2. To authorize any person to carry out their contractual obligations.
  3. To undertake a contract with any person.

      c.  Lawful obligation

Entities are lawfully admitted to exercise unique data for definite purposes only.

      d.  Public task

It is for entities developing the unique data under social command or for general framework processing the personal data in the collective interest.

      e.  Design a privacy policy

Designing a privacy policy is the key function under GDPR. The privacy policy of your entity tells the public how you process personal data and what is the reason behind doing so.

  1. Get register with your data protection authority

GDPR is imposed by the data protection authorities, the independent privacy regulators which can provide corporations with some data protection advice, and are also accountable for providing the fines for violation of GDPR.

      g.  Acquire your consumers’ personal data

GDPR needs you to apply suitable security measures to make sure that the personal data is not damaged or subject to any kind of unauthorized access.

Violation of data is a primary cause of fines under GDPR, so it is in the interest of the company to make sure that it protects the data of the consumers.

      h.  Frame up data processing agreements

Under GDPR, any person or any organization which decides the motive and means of the processing of the personal data is known as a data controller.


GDPR compliance is not an easy task. But, if you take precautionary steps and have knowledge regarding the same then you will be in the right direction of complete GDPR compliance for your startup/entity.


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