Legal hints and tips for Start Up
24 May 2016
Legal hints and tips for Start Up
- Create a limited liability company. Investors can not buy IE.
- The Company should be the owner of all assets, property, trademarks and other, that is used in the production of goods or services for profit or value. Investors do not buy an empty company.
- The company must have legal mechanisms for the protection of its customer base, its know-how, trade secrets.
- Implement corporate governance mechanisms to make the right and informed decisions.
- Conduct the correct and accurate tax accounting and financial reporting.
- Do not burden the company and its shareholders' financial obligations.
- Avoid loans.
- Sell shares to company with a commitment of investment in the capital of the company.
- Take an investment to the capital of the company.
- Try to agree with investor on helping you with tips and advice; since investors will be keen to give you tips and recommendations so as not to lose their investment.
- All arrangements must be properly documented and understood by investors and shareholders.
- IPO is not a magic wand. Many local companies are disappointed in the IPO and have been delisted on different exchanges.