The document discusses the legal considerations when starting a new business, emphasizing the importance of selecting the appropriate business structure which affects liabilities, taxes, and compliance obligations. It outlines various structures such as sole proprietorships, partnerships, limited liability partnerships (LLPs), and private or public companies, each having distinct advantages and disadvantages. Additionally, it highlights the necessity of properly drafting contracts and protecting intellectual property rights while ensuring compliance with relevant regulations.

1. STARTING A NEW BUSINESS LEGAL CONSIDERATIONS RITAMBHARA AGRAWAL Entrepreneurship Seminar-2011 8 DECEMBER 2011 NIILM-Centre for Management Studies, Gr. Noida, India

2. STARTING A NEW BUSINESS Start-up Is A Vital Time To Consider Legal Issues

3. 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. E very 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.

4. STRUCTURE OF THE ENTITY Proprietorship Partnership LLP Private Limited Company Public Company Limited Liability Partnership 1 Person Venture More than 1 person operating jointly Corporate Structure Established Stage

5. PRIVATE LIMITED COMPANY

6. PROPRIETORSHIP Sole Proprietorship Concern, sole owner funds and operates business

7. PARTNERSHIP Partnership amongst individuals to operate jointly and share profits

8. 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

9. FUNDING

10. 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.

11. 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.

12. INTELLECTUAL PROPERTY RIGHTS

13. 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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