Hacking the term sheet

Amidst the big rush for Funding, Funding, and more Funding, most founders get carried away by the “hulla” in the market rather than trying to understand the real implications. One such example is at the time of initial negotiation with the Investors.

The Term Sheet is the first document that sets the terms of the deal and breaks the ice of negotiation between the promoters and the investors. However, most of the founders do not understand the meaning of the primary clauses in the Term Sheet, which might put them in a disadvantageous position. Continue reading “Hacking the term sheet”

Startup India Action Plan 2016

The day of 16th January, 2016 can be marked as one of the prominent days for budding Indian Entrepreneurs, with the Prime Minister, Shri Narendra Modi, announcing the “Startup India Action Plan”, intended to boost and support the startup ecosystem in India. First announced on the occasion of India’s 69th Independence Day, the Startup India initiative has taken a full-fledged shape after the Government released the key initiatives to create a strong ecosystem for fostering innovation and startups in India. Continue reading “Startup India Action Plan 2016”

Founders Agreement

So you have everything in place for your startup. You also have a team in place, including your co-founders with you. However, one thing many startups tend to overlook is a founders agreement.

One could assume that since startups are usually the result of two or more like-minded people, this agreement often skips the mind. However, it is extremely important to outline expectations right at the onset as this helps in decision making and reduces risks. It also avoids any kind of an eventual dispute between founders. Continue reading “Founders Agreement”

How to Register a Company

Procedure for Forming a Company in India | Procedure for Forming a Private Limited Company in India | Procedure for Incorporating Company in India | How to Incorporate in India | How to start a company in India | Type of Companies in India | Company Registration India | Business Entities in India | Company Registrations India | Online Company Registration India | How Do I Start a Business in India

The private limited company is the most successful business type in India. Private Limited Companies are an ideal way of starting and structuring startups with a higher scope of expansion as compared to other forms of business due to the advantages of high credit worthiness, greater stability and separate legal entity. Continue reading “How to Register a Company”

Compliances for Private Limited Company, LLP and OPC – a clear comparison

Being a Chartered Accountant and interacting with several entrepreneurs, I found that the most common question bothering startup founders is which business entity to form and what are the compliances of these entities. Hence, there is a need to summarize this essential information in a comprehensive manner and layman terms.

The three most preferred business entities in India – Private Limited Company, Limited Liability Partnership (LLP) and One Person Company (OPC) have some important differences in their compliance structure which affect their running costs as well. Continue reading “Compliances for Private Limited Company, LLP and OPC – a clear comparison”