India’s economy has witnessed a sudden surge in the number of startups along with the increase in incubators, active angel investors, venture capitals and private equity investors probably due to a suitable political climate.
The co-founder agreement
For an unbarred and smooth functioning in the future the co-founders need to clearly demarcate the shares of their equity contribution, responsibilities and roles assigned to them. This further helps reduce the friction and tackle intricacies of all shapes and sizes. The outcome is much more refined which further ensures future protection.
To get your Co-Founder Agreement drafted click here
Registering a legal entity
Registering a startup as a legal entity in form of a sole proprietorship, a partnership firm, a private company or a limited liability partnership is more than advisable. If one plans to exploit benefits of venture capital or angel investment, he/she should register it as a private limited company as the shares are easily allotted and saleable.
To register your Private Limited Compnay click here
To register your LLP click here
Fund raised by family members
The startups look up to their family members/friends as a source of capital at the starting of the business. This is one of the most reliable and promises of all the sources of capital. The fund can be taken in both the forms that is equity as well as a loan. This is very helpful in the seed stage of the business.
Non disclosure agreement
If the need arise the concerned parties sign the non disclosure agreement due to the existence of technologies or paper work which is supposedly to remain undisclosed. The step is necessary for the sake of privacy.
To get your Non disclosure agreement drafted click here
Books of accounts
In order to ensure that the representation of the financial position is without any error and timely updated, the startups should maintain the habit of maintaining proper books of accounts. This helps in the growth of business.
Intellectual Property Rights
Intellectual Property Rights is the most priceless asset of the business and thus should be preserved to the best extent. Intellectual Property Rights consists of company logo, name and brands, collectively the trademark. Also patent and copyright registration is highly recommended. If ignored, the competitors can seize the opportunity and take advantage.
To apply for Patent click here
To apply for Trademark click here
To apply for Copyright click here
Labour laws and employment agreements
A business needs to comply with the employment and Labour standards in its place of business. It is necessary for the startup to sign the employment agreement, Gratuity, provident fund, sexual harassment etc. in accordance to the California industry labor law charts in amounts to composition of labour laws.
To get your Employment Agreements drafted click here
Compliance with Information technology laws
Information technology act is extremely important in today’s era which is technologically advanced. Digital signatures, privacy, confidential data stored in a data room, documents, cloud computing or e contracts all amounts to practices which demand protection and thus compliance with the IT laws which is more than necessary.
Registering PAN of the founders/company is the most necessary step in the incorporation of the startup. Following are the registration of Goods and Service Tax.
Right action at the initial stage ensures growth and prosperity of the business. Legal documentation should be adhered to from the very beginning in order to have unbarred property.
Author: This blog is written by Ms. Tanya Bajpai, a passionate blogger & intern at Aapka Consultant.
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