Hari Prasad
Asked October 04, 2016

Legal documents needed for a startup

  • 1 Answer
  • 200 Views

I'm planning to partner with a startup company, which requires me to invest in the company. I need legal assistance in understanding the necessary documents and other guidance in safeguarding my investment and future

Answer 1

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Saurabh Kumar

You can start your company as one of the following: 1. Sole proprietorship 2. Partnership 3. LLP 4. Private Limited Company A Private Limited Company is the most popular form of incorporation. The government fees  is about 7-8 thousand rupees.

 

An LLP is less costlier.

In case you are selling services, it is advisable to get a service tax registration done. For products, a sales tax registration is advisable. If you have a website, you should have a Terms of Service and a Privacy Policy. You can use commonly available templates, if your website is a regular one. However, if you can afford and if you think your website requires one, you should go for customized terms of service and privacy policy.

The various formalities required for registration of start-ups in different forms is listed below-

A) Proprietorship Firm - 

Process of Registration :- a) First Step for the Products/E Commerce Business if you are selling Products without Shop - Take VAT Registration. VAT is the mandatory when your turnover Exceed 5 lakhs but you have to take VAT Registration Initially. its also help to selling on online market place likeFlipkart/Snapdeal/Amzon/Shopclues.                                           OR if you are selling Products with the Shop- Take Shop Establishment License that is local registration. but remember one thing you have to take VAT Registration is also when your turnover exceed 5 lakh rupees. b) First Step for the Service Business if you provide services in India :- Take Service Tax Registration that is central tax registration. but you have to pay service tax to government when your turnover exceed 10 lakh rupees C) Authorization Certificate from Chartered Accountant regarding nature of business. d) Go to nearby any Bank and Say them Open your Current Account and give them your VAT/Service Tax Certificate and CA Authorization Letter.

 

B) Partnership Firm-

Partnership Firm Registration for Startup

Process of Registration- a) Choose Partnership Firm Name b) Create Partnership Agreement or Deed c) Register Partnership Firm (Optional) d) Apply for PAN Card in the name  of Partnership Firm e) Opening of Current Bank Account

2) As LLP- LLP Company Registration for Startup in india

Minimum Requirements- 2 Partners Process of Registration- Step 1- Apply for your Partners DIN Step 2- Apply for your Parnters DSC Step 3- Application to Govt for Name Availability of the proposed LLP Step 4- Verification of Documents and Forms by Govt Step 5- Filing of Incorporation Documents and Forms by Government Step 6- Certificate of Incorporation Step 7- Drafting of LLP Agreement Step 8- Filing of LLP Agreement

 

3) As Company

A) Private Limited Company-  Minimum Requirements *2 Directors * Minimum 1 Lakh Share Capital Process of Registration- Step 1. Application for Director Identification Number (DIN) in form DIR-3 & DSC (Digital Signature Certificate) Step 2. Search for the Company Name availability Step 3. Application for the Name availability Step 4. Drafting of Memorandum of Association (MOA) & Articles of Association (AOA) Step 5. Filing of e-forms with RoC (Registrar of Companies) Step 6. Payment of RoC Fees & Stamp Duty Step 7. Verification of documents / forms by RoC Step 8. Issue of Certificate of Incorporation by RoC

 

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