Ideas are easy. Implementation is hard. Very well said by Guy Kawasaki, All Top Co-founder. But the young talent has taken this statement seriously & not only in India but worldwide people are doing very well to start their own business which we call start up.
Start-ups can be small companies that play an important role in economic growth. This is also creating jobs for the unemployed people, so we can say that this creates a win-win situation in the case of India as a country at least.
JIMS – IIC organised a session on “How to plan for start-up: Legal & Ethical Steps" on 12th may 2022.
Speaker listed lots of things that we need to have before starting a start-up. It includes -
- Idea
- Research
- Business Plan
- Expansion Of Market
All these things come under the prerequisite list. One should know all these things to start a start-up as all are interconnected with each other.
The speaker then talked about the types of entities which one should be aware of before starting a business or startup.
- Proprietorship - Business owned and run by one individual with no distinction between the business & the owner.
- Partnership - It is an agreement by two or more parties to manage & operate a business & share its profit.
- Limited Liability Partnership (LLP) - It is a partnership where a person’s liabilities are limited to the amount they put into the business.
- Private Limited Company - It is a company which needs to be registered or “private” ownership used with many jurisdictions.
After types of entities, the speaker covered ‘Mandatory Vs Optional Requirements for a Startup.’ Then he classified the Mandatory Requirements as Entity PAN, Registered Address, and License. The optional Requirements consist of Micro-small medium registration, Intellectual property Right, Employment agreement with stuff, ESOP- to retain employees, Vendor agreement.
Speaker added that it is important to have agreements. Why? Because it helps in safeguarding against losses & wanted claims. It also helps in knowing Speaker concluded the session by telling Why IPR? It is important for safeguarding in order to protect the creation. It also plays an important role in Brand building & creating impact in the market. It was a good learning experience. The session turned out to be an interesting session