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I have purchased a HP laptop with Windows 10 home single language OEM pre-installed on it,However I've formatted my system without making recovery disks.I've downloaded Windows 10 ISO from Microsoft's site and burn it on a dvd and did a fresh install on my system.It gets activated digitally on my system.Is it legal to use this type of fresh installation or do I have to face problems in updates from HP and Microsoft.I went through superuser post Reinstall Windows 10 using ISO onto new SSD without losing activation status I've not changed the hard disk.It's all about a fresh install.

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It's not legal or illegal, as there are no laws involved. The correct question would be, are you acting within in the bounds of the license agreement, and within your rights to install the software on your device? The answer is yes - absolutely. You shouldn't face any problems whatsoever.

AdzzzUK
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This is a question for a lawyer, but if the Windows does not complain that it requires the activation, I'd assume it's OK to continue using it.

You could use one of the method desrcribed here to make sure there are no problems with activation.