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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:

  • Name and address of the firm and all the partners.

  • Nature of the business.

  • Duration of the partnership (if any).

  • Capital contribution by each partner.

  • Profit and loss sharing ratio.

  • Duties and powers of each partner.

  • Provisions for admission, retirement, and expulsion of a partner.

  • Dispute resolution mechanism.

  • Dissolution terms.

B. Co-founders Agreement: This agreement is crucial when there are multiple founders. It outlines:

  • Equity ownership.

  • Roles and responsibilities.

  • Salary or compensation.

  • Provisions in case a co-founder leaves.

  • 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:

  • Definition of confidential information.

  • Obligations of the receiving party.

  • Duration of confidentiality.

  • 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:

  • Description of the IP.

  • Transfer terms.

  • Compensation (if any).

  • Warranties and representations.

2. Registration with the Registrar of Firms (ROF):

A. Process:

  1. Choose a Name: The name should not be similar to any existing firm doing the same business, to avoid any legal complications.

  2. Draft the Partnership Deed: As mentioned above.

  3. 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.

  4. Pay the Fees: A nominal fee is required to be paid for registration.

  5. Get the Acknowledgement: Once the application is approved, the ROF will issue an acknowledgement of the registration.

B. Documents Required:

  1. Duly filled application form.

  2. Original copy of the Partnership Deed.

  3. Proof of the principal place of business (like a rental agreement).

  4. ID and address proof of all partners.

  5. 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.

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