A startup is a business idea or a concept getting its feet into the commercial world. For this purpose a startup needs to be recognized as a legal entity before it can start its business journey. The Incorporation process gives the startup a formal structure and some issues need to be meticulously considered to avoid eventualities in future. Some of the essentials which need clarity during the incorporation of a startup are:
Nature of entity: Indian regulations provide for numerous options of commercial entities from sole proprietary concerns to partnerships and companies. Based on the nature of business, constitution of ownership and the appetite to handle compliance, an appropriate structure needs to be identified, preferably with professional guidance. Every constitution has its own pros and cons, the entrepreneur/s need to be well appraised of the consequences prior to choosing the constitution.
