1. What are the benefits of registering a company? 2. I want to learn different kinds of registration. If I register my company I want to be like an employee, so that in case the company goes down I am not sued :)
Well I have 0 knowledge in this domain and really need some help.
Excelent blog you have here. Informative and useful.
Vijay
· 1 year ago
@Ravi: Thanks.
Go ahead and incorporate the company. If you find an auditor he should be able to advise you on all the legalities. Its quite straightforward.
shivaas
· 1 year ago
I would suggest to people to delay forming the company to a point where u need a legal entity to deal with people,employees,contracts etc... If you're jsut building a product/service, i'm sure u can run for about the first 5-6months without the hassles of a registered company. It's easy to get one up, but difficult to bring it down here in India. It usually takes about 1-1.5yrs to close a company here in India.
I would suggest to budding entrepreneurs to build the product first, get it in the market, and then when ur sure of the path you're heading on, take a plunge and register yourself as a legal entity.
Vijay
· 1 year ago
@Shivaas,
What you are saying makes sense, but not in the context of someone working on something when they are also employed elsewhere. According to most contracts, anything that you are working on during your employment period also belongs to the company that you are working for. Having a seperate legal entity "own" the product and service, and creating that bifurcation is important.
What if it takes 1.5 years to shut it down. Get the process done and let an auditor handle it - move on with other things. And that's the worst case scenario.
moneyvidya
· 1 year ago
I don't know how feasible this is but if you work for a large firm and you're a highly rated employee it might just be possible for you to negotiate a sabbatical (unpaid leave for 3-6 months), perhaps even a year. This will give you the chance to really plunge into your idea full time. At the end of the unpaid leave you'd (hopefully) be in a better position to decide whether your project is really worth quitting your day job for...
@Vijay: Where can I find an auditor who can guide me? Do you know anyone who would help me?
Thanks for your suggestions.
Ravi Sagar
· 1 year ago
@moneyvidya: Leaving current job is not a good option for those who are financially depended on their jobs.
Rajat Nagpal
· 1 year ago
interesting thread... and here are my views:
1. if you are sure of starting or doing this venture, then go ahead and open a pvt. ltd company. it will help you to get the name you wanted for your venture quickly and also then by the time, you will develop your product, you can parallely promote that company.
2. Parallel to it also book a domain name on web for your company and make it related to your product/Service.
The idea is to go step by step, First thing first.
3. If you are working on your day job and parallel working on something which you want to pursue as entrepreneur, then ensure that your current job and your venture should not be in direct competition. If it is, then don't ask for permission. If its not then discuss with the senior person in the organization whom you can trust and he/she is close to management and can guide you on how to go about it. Share your dream and vision with them and then take the project forward. In this entire process, if company allows you to pursue your dreams parallelly, then they will also keep a close eye on you and your productivity, which might hamper your future growth plans with the organization for a longer term.
4. I suggest keep everything under tight wraps and go on with all process, planning, development and once ready for beta testing, do it in some other name.
5. Bottom line is don't leave your job until you are ready with the launch or get first few small customers to validate your idea.
Many VC's say they support people who quit their jobs and venture into something... thats all crap. They fund only those ventures where they are confident that they will be able to sell the same to someone else in 3-5 years and exit by making money, else they don't invest.
All the best!
Rajat
Snigdha Sengupta
· 1 year ago
Very sound advice. And nice new blog theme. Are you going to be writing here more frequently? :-)
Vijay
· 1 year ago
Thanks Snigdha. As for the blog frequency, am hoping to - but also dont want to write unless there is something solid to talk about. There is too much noise in the blogosphere these days :)
All Comments
1. What are the benefits of registering a company?
2. I want to learn different kinds of registration. If I register my company I want to be like an employee, so that in case the company goes down I am not sued :)
Well I have 0 knowledge in this domain and really need some help.
Excelent blog you have here. Informative and useful.
Go ahead and incorporate the company. If you find an auditor he should be able to advise you on all the legalities. Its quite straightforward.
I would suggest to budding entrepreneurs to build the product first, get it in the market, and then when ur sure of the path you're heading on, take a plunge and register yourself as a legal entity.
What you are saying makes sense, but not in the context of someone working on something when they are also employed elsewhere. According to most contracts, anything that you are working on during your employment period also belongs to the company that you are working for. Having a seperate legal entity "own" the product and service, and creating that bifurcation is important.
What if it takes 1.5 years to shut it down. Get the process done and let an auditor handle it - move on with other things. And that's the worst case scenario.
Gautam Kshatriya
gautam.kshatriya@moneyvidya.com
http://www.moneyvidya.com/blog
Thanks for your suggestions.
1. if you are sure of starting or doing this venture, then go ahead and open a pvt. ltd company. it will help you to get the name you wanted for your venture quickly and also then by the time, you will develop your product, you can parallely promote that company.
2. Parallel to it also book a domain name on web for your company and make it related to your product/Service.
The idea is to go step by step, First thing first.
3. If you are working on your day job and parallel working on something which you want to pursue as entrepreneur, then ensure that your current job and your venture should not be in direct competition. If it is, then don't ask for permission. If its not then discuss with the senior person in the organization whom you can trust and he/she is close to management and can guide you on how to go about it. Share your dream and vision with them and then take the project forward. In this entire process, if company allows you to pursue your dreams parallelly, then they will also keep a close eye on you and your productivity, which might hamper your future growth plans with the organization for a longer term.
4. I suggest keep everything under tight wraps and go on with all process, planning, development and once ready for beta testing, do it in some other name.
5. Bottom line is don't leave your job until you are ready with the launch or get first few small customers to validate your idea.
Many VC's say they support people who quit their jobs and venture into something... thats all crap. They fund only those ventures where they are confident that they will be able to sell the same to someone else in 3-5 years and exit by making money, else they don't invest.
All the best!
Rajat