1. At which stage startup incorporation is necessary?
Startups generally go
through following stages:
- The Ideation Stage
- The Co-founder Stage
- The Prototype Stage
- The Business Model Stage
- The Business Plan Stage
- The Branding Stage
- The Company Incorporate Stage
- The Pitch Deck Stage
- The Funding Stage
- The Scale-Up Stage
1. What is the best business structure for my
startup?
As our startup eco system is producing
numerous brilliantly scalable ventures and attracting various international
investments, a startup should be incorporated as Limited Liability Company to
cater for future needs of expansion.
1.
What
does ‘Limited Liability’ means?
Limited Liability means that any
debt, losses or legal claims associated with the company are the responsibility
of the company not of founders being shareholders or directors of the company.
Maximum loss is limited to investment in the share capital of the company or in
other words total assets of the company. Business creditors cannot get access
to personal assets of the founders.
1. What
type of Limited Liability Company should startups have?
Startups should be registered as
a multi member Private Limited Company, not a single member Private Limited
Company because when a single member company share equity and introduce new
members then it has to be converted into a multi member Private Limited
company.
1. Can a
startup raise public funding after incorporation as Private Limited Company?
A startup can raise funding by
sharing its equity to any private investor but cannot solicit for general
public investment. Only Public Limited companies can raise investment through
public offering (IPO). A Private Limited Company can have maximum 50
members/shareholders.
1. Can a
Public Limited Company be converted into Public Limited Company later on?
Yes, a Private Limited Company can
be converted into a Public Limited Company at any time by fulfilling certain conditions
and can start public offering (IPO) for raising investment from general public.
1 What are the major requirements of Private Limited company incorporation process?
- Proposed Name of the company
- Principal Line of Business
- Registered office address
- Personal details of Founders/subscribers/shareholders (at least 2 in case of multi member private limited company)
IBI-REMEDIUM offers you the facility of getting your startups registered so if you want to get your startups registered, you can do it by availing our services.
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