legal issues for start up

STARTING A NEW BUSINESSLEGAL CONSIDERATIONS

RITAMBHARA AGRAWAL

Entrepreneurship Seminar-2011

8 DECEMBER 2011NIILM-Centre for Management Studies, Gr. Noida, India

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STARTING A NEW BUSINESS

Start-up Is A Vital Time To Consider Legal Issues

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STRUCTURE OF THE ENTITY

• Structure of the entity is a critical aspect, which needs attention since the start of the venture.

• Structure of the entity decides the liabilities of the directors, tax implications, benefits, and statutory compliances required under the said structure and also the ability to raise funds.

• In India, one can register as a private limited company, sole proprietorship, partnership, LLP or public limited company. Every structure has its own pro and cons.

• While deciding the structure of the entity one has to also look into the target market and the nature of product and services offered.

• Many entities go for a US incorporation depending upon their needs.

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STRUCTURE OF THE ENTITY

ProprietorshipProprietorship

PartnershipPartnership

LLPLLP

Private Limited CompanyPrivate Limited Company

Public CompanyPublic Company

Limited Liability Partnership

Limited Liability Partnership

1 Person Venture1 Person Venture

More than 1 person operating jointly

More than 1 person operating jointly

Corporate StructureCorporate Structure

Established StageEstablished Stage

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PRIVATE LIMITED COMPANY

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PROPRIETORSHIP

Sole Proprietorship Concern, sole owner funds and operates business

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PARTNERSHIP

Partnership amongst individuals to operate jointly and share profits

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LIMITED LIABILITY PARTNERSHIP

LLP is an alternative corporate business structure that gives the benefits of limited liability of a company and the flexibility of a partnership

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FUNDING

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CONTRACTS

Contracts form an essential part of a business. A Contract defines the understanding between the parties, stating their roles & responsibilities, mitigates risks and defines liability of each party. It’s important to have all the agreements in place and work under the same.  

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INTELLECTUAL PROPERTY RIGHTS

For any venture like tangible assets, intangible assets are also highly valuable. Therefore, maintaining and protecting the IP of the company is very important and needs to be done since the inception of the company.

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INTELLECTUAL PROPERTY RIGHTS

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COMPLIANCE & LICENSES

Every business and industry has different compliances to be followed. Make sure to comply with all the statutory and legal compliances and keep it documented.

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Thank you

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