What kind of company to setup would be a basic question for any start-up founder? With various options available, founders would have to brainstorm to figure out this dilemma.
You could go for a sole proprietorship if you intend to keep ownership and control in your hands. Or you could choose an LLP for less compliance. Or incorporate privately limited to enable growth and raise equity. But these different entities have their own cons like different tax compliances and other registrations. The founder has to balance these pros and cons, then decide on what kind of company to setup.
Sharda Balaji explains the aspects of investment, taxation, and Intellectual Property rights with respect to a Sole Proprietorship, a Limited Liability Partnership(LLP), and a Private Limited company.
Sharda Balaji has expertise as an in-house attorney in various MNCs closing a wide range of deals. Also, she is a CS and founder of law firm NovoJuris. Moreover, she donned the roles of legal counsel, founder, angel investor, Independent director, and trustee. Sharda has nurtured many young entrepreneurs through their start-up journey.
This Start-up 101 series is a guidebook for business to novice entrepreneurs. Here are solutions for hundreds of questions you ever had and even for ones you haven’t thought of. In short, we have condensed the huge experience of various mentors and founders into a handy, user-friendly manual.