Startup/New Business Partnership Plan
1. Start-up Package for Creation of a Partnership
A. Partnership Deed: This is the primary document that outlines the rights, responsibilities, profit and loss sharing, and other terms and conditions agreed upon by the partners. It should include:
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Name and address of the firm and all the partners.
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Nature of the business.
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Duration of the partnership (if any).
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Capital contribution by each partner.
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Profit and loss sharing ratio.
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Duties and powers of each partner.
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Provisions for admission, retirement, and expulsion of a partner.
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Dispute resolution mechanism.
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Dissolution terms.
B. Co-founders Agreement: This agreement is crucial when there are multiple founders. It outlines:
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Equity ownership.
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Roles and responsibilities.
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Salary or compensation.
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Provisions in case a co-founder leaves.
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Decision-making process.
C. Non-Disclosure Agreement (NDA): To protect the confidential information of the business, an NDA is signed by parties who have access to such information. It typically includes:
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Definition of confidential information.
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Obligations of the receiving party.
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Duration of confidentiality.
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Consequences of breach.
D. Transfer of Intellectual Property Agreement: If there's any IP involved, this agreement ensures its proper transfer to the firm. It includes:
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Description of the IP.
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Transfer terms.
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Compensation (if any).
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Warranties and representations.
2. Registration with the Registrar of Firms (ROF):
A. Process:
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Choose a Name: The name should not be similar to any existing firm doing the same business, to avoid any legal complications.
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Draft the Partnership Deed: As mentioned above.
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Submit the Application: Submit an application to the ROF of the state in which the business is located. The application should be signed by all partners.
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Pay the Fees: A nominal fee is required to be paid for registration.
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Get the Acknowledgement: Once the application is approved, the ROF will issue an acknowledgement of the registration.
B. Documents Required:
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Duly filled application form.
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Original copy of the Partnership Deed.
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Proof of the principal place of business (like a rental agreement).
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ID and address proof of all partners.
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Affidavit certifying the details mentioned in the deed and the application.
C. Time Required: The time required for receiving the Incorporation Certificate varies from state to state. Generally, it takes anywhere between 12-28 days, depending on the efficiency of the local ROF and the correctness of the submitted documents.