STARTING A STARTUP:
LEGAL ANALYSIS OF A LIMITED LIABILITY PARTNERSHIP AS THE IDEAL BUSINESS STRUCTURE AND AVAILABLE INVESTMENT CHANNELS

Considering the fact that startups are gaining massive popularity these days, it seemed important to understand the legal environment and the legal compliances relating to a startup business. Even the Government of India has a huge focus on the ease of doing business reforms and startup action plans. The reason being that, the Government wishes to simplify the business-related legal environment, in order to give a boost to startups. In this light, this article aims to discuss the structural and financial ease of doing business. Firstly, the article analyses the legal benefits of a Limited Liability Partnership over all other business structures, i.e., a public and a private company by pointing out its less complex and less compliance- seeking nature. Thereafter, the article acknowledges the importance of financial decisions for a business which are the cornerstone for its initial years. It is further understood that most people drift away from the idea of opening a startup because of their concerns over financial hurdles. In this light, the latter half of the article points out multiple funding options available with a Limited Liability Partnership, such as Equity and Debt Investment options, Foreign Direct Investment and other unique financing methods, and analyses each method in detail by discussing various legal regulations attached therewith.

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Rajiv Gandhi National University of Law, Punjab

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 ISSN(O): 2347-3827

© Rajiv Gandhi National University of Law Punjab, 2020