Bubbling with excitement and ambition, you’ve put your heart and soul into building an organization from the ground up, the likes of which has never been seen in India before! Your idea is fresh, and sure to affect the lives of millions! But all of a sudden without warning or intimation, you find yourself defending missing legal compliances for a corporate law you didn’t even know existed! Or worse still, a rival opens up shop, with a strikingly similar product, capturing your target market.
And before you start developing any grandiose ideas of defending your startup in court, relying on the common sense of your peers and a sympathetic judge - let me say, it just doesn’t work like that. Dispute resolution in the Indian legal system is a long and arduous journey, with no certainty of outcome.Protect yourself. No one else will!
For those developing a proprietary product or service, it would be wise to consider patenting. There is a process for provisional patenting, which applies a ‘patent pending’ label to your product and prevents competitors from developing a similar one.
Note that patenting does not extend only to physical products or services. Under the purview of intellectual property, you can now protect and patent digital assets as well.
Startups with many people in their employ would benefit from making their employees sign a non-compete clause, which prevents them from setting up rival businesses or stealing clients. Similarly, a non disclosure agreement can halt workers from sharing details of your product.Business Registration
You may notice I have mentioned business names and company names separately. This is because, they are both separate legal entities, as we will now discuss.Types of Legal Entities
A legal entity refers to the different types of organizations bound by legal rights and obligations as defined under corporate law. The different forms of legal entities are:
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