Incorporation insights for a startup - eLagaan Startup Camp

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Incorporation insights for a Startup Scale your Startup Presented by Powered by 03-Dec-2016

Transcript of Incorporation insights for a startup - eLagaan Startup Camp

Page 1: Incorporation insights for a startup - eLagaan Startup Camp

Incorporation insights for a Startup

Scale your Startup

Presented byPowered by

03-Dec-2016

Page 2: Incorporation insights for a startup - eLagaan Startup Camp

Scale your Startup

You have an Idea !

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You want to get started

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What is the first thing that comes to your mind?

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When to Incorporate

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What entity to incorporate● Sole Proprietorship● General Partnership● Limited Liability Partnership (LLP)● Private Limited Company

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Factors crucial for startup● Hiring & Team building ● Marketing & Sales● Funding & Investors

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Hiring & Team Building● What kind of team do I need?● What is important for potential hires?● Will I be giving stock options?● Do I plan to get mentors and advisors?

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Marketing & Sales● My primary markets

○ Geographic - Local, State, Country, Global?○ Target - Consumers, Business, Enterprise, Govt?

● Are there any restrictions associated?● What kind of branding is needed?● Any perceptions that I need to deal with?

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Funding & Investors● Funding questions - How much? From

whom? When?● Do you need differential stock categories?● Will there be a vesting schedule, SHA etc.? ● FDI Involvement? Startup Tax?● What exit routes do I give to investors?

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Incorporation Gotchas● Dividing equity between Founders● SHA, Vesting schedules● MoA, AoA● Face Value of shares

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Startup India● Eligibility criteria● Exemptions available

○ Income tax○ Compliances○ Capital Gains, Startup Tax

● What difference it can make

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[email protected]

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