The best way to go further in developing your ideas is actually to start your business and to incorporate the company. The most common company legal form for startups is Limited Liability Company (hereinafter: “LLC”). LLC may be established by one or more domestic or foreign natural persons or legal entities with minimum share capital in the amount of 100 RSD, which is less than 1 EUR. Process of incorporation is fast, and company can be incorporated within 5 working days. Founder of the company can also be a director of the company and he/she can perform activities without being employed and without any salary which can reduce obligations related to the expenses, tax, etc. Nowadays most of the business activities can be performed online and working at home, therefore various virtual office services can be used as business address and office space.
From the very start of the business, founders tend to enter into agreements with investors, developers, employees, and independent contractors. When you form a LLC, your company takes on the risk of these contracts, so reducing business risk will be significantly more attractive to potential investors. A properly formed LLC provides owners, directors and officers with indemnification against claims from third parties. Also, by incorporating, you will ensure that the company will continue without disruption if one of the founders depart or suddenly die.
Also it is important to point out that the company should be the owner of the venture’s intellectual property. When you, your team, and your contractors continue to turn idea into reality, whether it’s a product, app or an e-commerce site, you are taking the first steps in building your company’s intellectual property (IP) portfolio. Your IP will include things like patents, copyrights, trademarks, and trade secrets. Your company’s IP is what investors, partners, acquirers, other team members, and your users will perceive as valuable. The value in your company’s IP is often what will increase the company’s valuation as a whole. If you invest in IP protection and a strategy for building a solid IP portfolio, then your company’s valuation will also increase accordingly.
Attorney at law Stefan Mojsić
The information contained herein has been provided only for the purpose of general information and cannot be considered as a legal opinion or legal advice. Accordingly, the Law Firm Petrovic Mojsic & Partners disclaims all responsibility and accept no liability in respect to actions taken or not taken based on any or all the contents contained herein.