To proceed with the formation of a new company in Delhi and starting a business, it is necessary to act prudently, with methodology and, if possible, with the assistance of a professional. This minimizes the risk of producing errors that are detrimental to the business creation project.
Today, we will inform you about some important mistakes to absolutely avoid when you are going for setting up a new business:
Rush in the choice of the legal form of the company
To create a company, you must first choose the legal form best suited to the business creation project. Several options are possible for the founding partners: sole proprietorship, partnership, joint venture, LLP (Limited Liability Company), Private Company, etc.
Choosing the legal form of a company is important on several levels. It determines in particular: the extent of the liability of the partners, the tax possibilities, the social security system for the managers, the possibilities in terms of organization, etc.
By rushing into the choice of the legal form of the company, the founding partners are likely to make several mistakes.
It is necessary to have an in-depth reflection before making your choice and it is advisable to validate the choice with the help of Business Setup Services in India.
Create a partnership firm without anticipating the risks of conflicts between partners
It is quite common for business creation projects to be carried out by two or more partners. In this configuration, the creation of a partnership agreement is necessary, and the share capital is divided as agreed between the partners.
In a situation like this, it is essential to include in the partnership deed all the clauses necessary for the proper management of conflicts that may arise between the partners. A conflict can lead to a blockage of the partnership firm and penalize the activity. In the event of a serious conflict, the situation may lead to the end partnership.
It is, therefore, necessary to provide, from the incorporation of the partnership firm, appropriate clauses to prevent and anticipate the management of conflicts between partners.
Not carrying out the steps relating to the protection of the project
At the start of business creation, there is a project developed and implemented by the founding partners. In some cases, the project even constitutes an innovation. Sometimes entrepreneurs forget to protect their ideas and their project. However, this oversight is an error that can have serious consequences.
It is therefore essential to carry out all the steps necessary to protect the business creation project as quickly as possible. These steps may consist, depending on the case, of:
- A patent application to protect an innovative technical creation,
- A trademark registration, in order to protect a distinctive sign that characterizes the company’s products or services,
- A domain name registration, in order to be sure to be able to use the right domain name for the website,
- Protection by copyright, in particular, to protect an intellectual work (the creation of software for example),
- A design deposit, which provides additional copyright protection.
If you want to know more about forming a company or setting up a business, we suggest you go for business setup services in Delhi.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by:
CS Neetu Saini
AKGVG & Associates