How can I get funding for startup if not registered yet

810 votes

In order to raise funding, you should first incorporate a business entity in form a private limited company. Once this done, you can receive external funding against equity in your company. Typically, investors do not invest in unincorporated ventures.

Advocate Ashish Porwal LawRato

829 votes

First I would like to congrats you on your business and hope it grows leaps and bounds. Arranging a funding if unregistered with any of the authorities will make the lender doubt the authenticity of the business and in such a case they would think a hundred times before making their mind. Its better to get the business registered and then its always easy to arrange for a funding. You can always go for personal loans but they charge high rate of interest, So in my personal opinion you should get your business registered with the authorities, although that'll add up to your expenses but I always say never fear those expenses if you have a successful plan to execute because at times it can open more ways for you. If you are from Delhi-NCR region, I can help you with the registration process and further plannings to ensure that it has least impact on your revenue. You can approach companies and other financial institutions which can probably grant you funds at concessional rates. You might get tax concessions as well. It needs to be weighed in the light of both the scenarios to see what is more successful so that your business does not end up facing unnecessary hurdles. If you want to grow then you would have to get yourself registered with the authorities sooner or later and the sooner it it the better its gonna be.

Advocate Aniket Rastogi LawRato

972 votes

Dear owner as you have a start up online eye wear e Com site which you must have booked as individual, now in order to make it a commercial entity you need to register a firm that could be prop,LLP,pvt ltd, or Ltd , generally what to chose and how to make the decision for the right model is important, it depends on factors like your team size , intellectual level and key person contribution as all these factors count at the time of VC funding, if you are making revenue out of the site it needs an accountable form, so the best way is to initiate a success is to register a start up ASAP through the link http://startupindia.gov.in/. In case of advisory kindly engage a lawyer for expert consultancy.

LawRato LawRato