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.
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.