Area of work · I

Company Formation & Structuring

Choice of entity, shareholder architecture, promoter arrangements and incorporation for resident and non-resident founders.

The form in which a business is carried on shapes almost every later decision: who may invest, how profits are taxed, what must be filed, and how an exit can be arranged. Incorporation is often treated as an administrative step. In practice it is among the most consequential choices in the life of an enterprise.

Where this arises

  • Choosing between a private limited company, a limited liability partnership and other forms.
  • Setting up a business with resident and non-resident founders.
  • Allocating shares, board seats and decision rights among promoters.
  • Holding structures for groups and for businesses that will take outside investment.

What the work involves

Advice on the choice of entity and the reasons for it; the memorandum and articles of association, drafted to match what the promoters have actually agreed; incorporation and the registrations that follow; promoter and shareholder arrangements; and the initial statutory records, so that the company starts with a clean file.

Points that are often missed

  • A structure that is easy to form is seldom the one that is easiest to live with. Investor expectations, taxation and compliance burden differ between forms, and conversion later is possible but rarely free of cost once value has accumulated.
  • Founders’ arrangements recorded only informally become hard to prove when the relationship changes.
  • Foreign ownership, even at a small percentage, brings in the foreign exchange rules from the first day.
  • Names, objects and registered office details are difficult to change cleanly once the company is operating.

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