Indian Startups receiving FDI (Foreign Direct Investment) must comply with FEMA provisions and report the transaction to Reserve Bank of India (RBI). The article gives a brief overview of different steps involved in the compliance.
Incorporating a company in India usually takes 4-6 weeks. However, according to a recent circular issued by the Ministry of corporate affairs, incorporation formalities will be completed in 24 hours. If implemented, the initiative will be a huge boost to entrepreneurship ecosystem in India.
Starting a business in India requires entrepreneurs to comply with laws of the state. Often laws related to taxation, labour and employment and privacy get knowingly or unknowingly violated. This makes entrepreneurs criminally liable and could land them with prison time.
Starting a technology company requires legal, operation and human resource understanding. In the first of the series of articles on this topic, we talk about setting up a company in India and obtaining necessary permissions with local government departments.
Founders’ agreement is an essential document that one must look at before starting any business. We try to touch upon some of the important elements that should be included in a Founders’ agreement.
Indian laws allow different types of business entities to be established such as Sole Proprietorship, Partnership Firm, Limited Liability Partnership, Private Limited Company and Public Limited Company. Choice of the business entity depends on various factors including taxation, liability, future growth strategy, investment and exit strategy.