With the startup community growing stronger than ever, there has been a rise in the number of angel investors, venture capital investors, and private equity firms who are willing to invest in such startups. Among the various factors evaluated in the due diligence report, adherence to legal compliance is one of the essential points to be taken care of. Continue reading “Due Diligence for Startups”
Acceptable Names for a Private Limited Company
One of the most important steps in setting up a company is choosing an appropriate name for it. The naming should be in accordance with the Companies Act, 2013 or Limited Liability Partnership Act, 2008. There are certain naming guidelines for choosing an acceptable name for a Company or LLP.
There are three parts to a name for a company. These are the Name part, the Object part, and the Constitution part. For example, if the name is XYZ Solution Private Limited, then “XYZ” forms the Name, “Solution” is the Object and “Private Limited” will be the Constitution part. Let us look at each of the parts individually. Continue reading “Acceptable Names for a Private Limited Company”
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”