Shaping the great minds.

Showing posts with label business guidance. Show all posts
Showing posts with label business guidance. Show all posts

Friday, 24 February 2017

Type of legal structures for incorporating businesses and different types of business entities.

2/24/2017 09:23:00 pm
In today's world of fast changing technology and business methods, it is very impotent to have an understanding of the legal structures available for various business. and in other hand you also need to be updated about the changing in rules and regulations pertaining to your entity. so this basic review is required.

Usually, while in the rush for growing business, entrepreneur ignoring some common legal issues that cost you heavy on time and money. Here are some common mistakes.

  • Ambiguity in terms of agreement: This means ambiguity in the terms of agreement between multiple shareholders may lead to consequences like co-founders leaving the organisation. 

  • Infringement of IP rights: In this case for contravene upon some else's IP(intellectual property) rights that I have already discussed in my previous blog, your business ends up facing consequently leading to heavy penalties and wastage of time in resolving the same problem.

  • Non-disclosure of privacy policies: If you have an online Business, it is necessary to put the terms and conditions along with privacy policies up on your website. This is a must to build user confidence as well as to protect you from legal lawsuits by consumers in case of a dispute. 

  • Appointment of legal Adviser: Wrong selection of lawyer makes it difficult for Company to troubleshoot legal problems in their journey. 

  • Formation of wrong entity: Selection of a wrong legal structure leads to trouble for entrepreneurs, either in the form of higher tax liability for the firm, recourse on personal liability of the owner in case of non-fulfillment of the company's debt, etc. 

Now Let's come to the point, Under the Indian legal system, there are Basically four types of legal components that are available. Each has its own set of outcomes.

  • Sole Proprietorship : A business run by one individual person with no distinction between the individual and the business. You are in business easily and have minimal filings and compliance requirements. the individual is personally responsible for all the businesses’ liabilities. It is also non scalable given that it appears less professional when compared to other forms of entities. 

  • General Partnership : Relevant when there is more than one founder,, you run the risk of unlimited liability here. A Partnership Deed is signed by the partners to create a General Partnership.

  • Private Limited Company : this type offers greater accountability because of mandatory registration and books to be maintained. in it, you can also seek investments against shares. Employees can avail stock options, and there is no unlimited liability to worry about. 

  • Limited Liability Company : A hybrid entity created out of both a company and a partnership, this entity has a restricted liability clause to support the founders of the company. It is also administratively easier to manage as compared to a company.
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Sunday, 12 February 2017

intellectual property protection and Registration Process of business entity. - Trademark, Copyright

2/12/2017 01:49:00 am
Intangible property that is the result of creativity, such as patents, copyrights, etc.

Having a idiosyncratic idea is great, but protecting and monetizing your idea is a far bigger challenge. Intellectual property rights help you gain an edge over other competitors in the market, and at the same time, it is critical for you to avoid any infringement on somebody else’s IPRs.

There are a few aspects of IPRs which you must look at for registering your creation:

1.  Trademark – This is something you can do for protecting your brand/logo. This helps you in differentiating your products/services from other players in the market. 

2.   Copyright – It is a legal right which is given to the creator of the product for a fixed time period. Through this the author enjoys the exclusive privilege to publish, broadcast, adapt, make derivative works, showcase and monetize the same. It could either be a literary work, a dramatic work, a music or artistic work. 

3.   Patent – The focus here is on proving the novelty of your creation. It needs to be a new invention for you to get a patent. Availing patent protection is a bit more complex than getting a trademark or a copyright. Generally, these are given for machines and pharmaceutical products.

4.   Design – Registered designs are used to protect the external appearance of any object. These are primarily meant for protecting designs meant for commercial/industrial use. For instance, a jaguar car design. 

Whenever the company seeks funding from the investor community, IP – how it is managed and protected - becomes an important criteria for them to decide. It helps investors figure out the long-term growth of the company. They check on a few key aspects like: 

1. IP ownership rests with the company and not with the founder
2. Ensure that there are no arrangements of IP sharing.
3. How frequently are the IP rights being reviewed? 
4. What are the legal implications for changes made to the brand or logo? 

IP Registration Process 

When it comes to registering your IP, say, for instance, trademark, the first thing which you need to figure out is to decide on its geographic spread - national registration or international registration. Under the Indian national regime of registration of trademark, you can apply to any of the five registrars located at Mumbai, New Delhi, Kolkata, Ahmedabad, or Chennai for complete protection across India. The Registrar shall examine the application, post which it shall be published in the Indian Trademarks Journal. If no opposition is raised by any third party within 90 days, the Registrar accepts the trademark application. 

Under the international regime, India is a signatory to various treaties, which allow for registration of a trademark in multiple countries with a single application process. Depending on the targeted countries you wish to register your trademark in, you can select any of the various international treaties such as the Madrid Protocol, European Community Trademark, etc.