03/05/2021 BUSINESS LAWS AND REGULATIONS – FLAME University Course Catalogue

BUSINESS LAWS AND REGULATIONS

Program: PGPEI

Objectives Department: Finance

Entrepreneurs are generally focused on the building core product and nalizing the strategy of Code: ENTS475
business however to take a holistic decision in any business, it is important to be aware of the
nitty-gritty of legal and compliance aspects Area of Study: Entrepreneurship
Choosing the Right Business Structure helps the Entrepreneur in long run to raise equity from
Credits: 2
an investor, avail bene ts of the STARTUP India Scheme, and other bene ts introduced by the
government for a startup
Level: 400
Compliance is generally costly, cumbersome, and complex for an entrepreneur but Compliance
can add value to valuation. So with a lot of initiatives taken by the Government for startups for
ease of doing business in India, it is important for startups to be aware of mandatory
compliance which their entity has to complete and how they can grow with governance with the
help of the right legal mentor/consultant
Knowing your contracts and key points to be negotiated are very important as a founder and
CEO even though the legal mentor/attorney is at the aid of the founder to draft the complex
agreements
As a Founder of family managed business/ rst-generation startup, understand Role,
Responsibility, and Liability as Board of Director, what is the importance of the Advisory Board
Due diligence – Key to fundraising, Compliance adds value to valuation
Dispute resolution

Outcomes
Select right legal structure
Comply with applicable laws
Decision making while negotiating a contract
Board room decisions in family owned business/startups
Decision making while fund raising – Equity vs Debt
Best dispute resolution mechanism
Identifying right legal mentor, attorney for advisory board

Topics
Understanding different type of the Legal Structure
Understanding different type of the Legal Structure (Contd)- Imp of DPIIT Recognized startup
Comparative of Compliances involved in various type of Legal Structure (initial year)
One on One with participants on selecting the right legal structure for their venture
Importance of unique name and DIY process on nding the name of the Company on MCA and Trade Mark portal
Importance of MSME registration and DIY process for Udyam (MSME) registration
DIY process for DPIIT Recognized startup
Legalities involved in funding : Equity vs. Debt
How to apply for Pradhan Mantri Mudra Yojna
Know your Contracts
Understanding Key aspects of Founders agreement
Understanding Key aspects of Shareholder’s Agreement/ Term sheet
Importance of Due Diligence – before Equity round. Creating data room
Understanding Key aspect of Non Disclosure Agreement
Understanding key negotiating clauses in various agreements (including vendor agreement)
Importance of HR agreements and policies
Understanding Key aspect of LLP agreement (if few participants have decided to create LLP- optional attendance for those who have formed
Company)
Practical negotiation of a founder’s agreement/ shareholder’s agreement/ LLP agreement
Role and Responsibility of Founder’s/Co-founder’s as Director in Board Room & Board processes
Role and Responsibility of Founder’s/Co-founder’s as Director in Board Room & Board processes (Contd.)
Mock Board Room meeting of a Startup up within one month of incorporation
Understanding Board’s report
Identifying compliance of all applicable law (Group and one on one speci c based on candidate’s business)
Mock Annual general meeting of a Startup presenting Annual Accounts

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03/05/2021 BUSINESS LAWS AND REGULATIONS – FLAME University Course Catalogue

Role of Legal mentors, consultants and attorneys for a Startup

How to handle Dispute resolution: Mediation, Arbitration clause
Further course of action under Insolvency and Bankruptcy
One on one handholding from structuring till contracts – 2 participants (30 min each)
One on one handholding from structuring till contracts – 2 participants (30 min each)
One on one handholding from structuring till contracts – 3 participants (30 min each)

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