Do I need to register start up before receiving funding
01-Apr-2023 (In Startup Law)
I have a online entertainment and news website for indians(not yet incorporated) and a investor wants to invest in my startup for 10% equity stake so i want to whats the producedure means after getting funded then do i need to register my startup under private limited company and if yes then how i can allot 10% stake to investor name, is this a work of a lawyer, and how much shares is associated with that 10% equity stake who will decide that
So you need to register your start up be it a LLP, Pvt Ltd Company or Public Limited Company and then a separate Contract of Equity will be signed in between you and your funding organisation to execute this funding process.
Further procedure can be detailed out only if I have full papers on my table.
Coming to your second question, yes that is indeed a lawyer's job and no one else's. I did not understand ten last bit of your question - "how much share is associated with 10per cent share"
It appears that ur little clueless with co pant law aspects. I will advise you to touch base with some lawyer, understand stuff n then go ahead with investment rounds.
All the best!
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