Hello, I am investing capital in my friend's startup in India. I am a first time investor and I need advise on the key documents to ask and some one to vet the share certificates being issued. Thanks, Harmeet
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Ask them about the registration certificate, licence patent trademark ,compliance file financial statements, confidentiality agreement, business plan for or pitch document, valuation report , balance sheet, term sheet, due diligence, authorised capital increase, shareholders definitive agreement , amendment of AOA share certificate.
Also ask about the exit strategy
Thanks Khyati .Are all them required or is a must have or key list? Also, would you be able to review the documents once I get hold of them.
You just have to go through them to have an idea about the position of the startup , then you can decide about investing. And Yes I can review them.
Ask for following documents
1) Memorandum of association
2) articles of association
3) employment agreements entered into by start up
4) loan and guarantee agreements entered into by the start up
5) licensing and franchising agreement entered into by the company
6)equipment lease agreement
7) pending law suits , labour litigation filed against the company . Injunction order if any against the company
8) real estate agreements entered into by the company
9) minutes of board meetings , list of directors , key managerial personnel and their details
10) certified true copies of ROC filing
You can engage any lawyer on this website for vetting documents furnished by start up
You need to review the documents related to start up also along with the share certificate. We can review it if required.
If you need any further assistance.you can approach me through Kaanoon or LinkedIn.
If you are investing in a start up company, you may have to first confirm the background of the company's partners, their economic conditions, their goals and other credentials from your known sources, besides you can verify the following documents:
For reviewing or vetting the document on your behalf, you may approach the chosen advocate directly instead of giving a call in general to the public platform like this.
You may contact the advocate of your choice and get the documents vetted scrutinised on the terms of the advocate.
- You can engage any lawyer of this website for the said work.
- However , you can verified the following documents before investing
You should get an investment agreement carefully drafted by an advocate and executed before you make any investment in this startup.
Registration of the investment agreement is not mandatory as per the laws of India but it is highly advised.
