Choosing the legal form of new

venture, protection of intellectual

property
 Types of business entities
• Sole proprietorship
• Easy setup
• Low cost
• Tax deduction
• Easy exit

• Partnership
• Easy to form
• Growth potential
• Special taxation
 Types of business entities
• Limited liability company
• A limited liability company (LLC) is a hybrid structure that allows owners,
partners or shareholders to limit their personal liabilities while enjoying the
tax and flexibility benefits of a partnership.

• Corporations
• C corporations, owned by shareholders, are taxed as separate entities.
• S corporations were designed for small businesses and avoid double taxation,
much like partnerships or LLCs.
• B corporations, otherwise known as benefit corporations, are for-profit
entities structured to make a positive impact on society.
Factors to consider before choosing a business structure

• Flexibility
• Complexity
• Liability
• Taxes
• Control
• Capital investment
 Protection of intellectual property
• The Copyright Act, 1957 and the Copyright Rules, 1958 provide for
protection of copyrights in India.

• Indian Firms Convert Intellectual Property Into Intellectual Profit.

• Tata Motors received 40 patents for the design of Nano, its groundbreaking
$2,500 car, which hit Indian roads in October 2008.
 Protection of intellectual property
• In 2016, the state of Telangana set up India’s first IP Crime Unit, to
combat the menace of internet piracy.
• In 2017, Maharashtra followed suit by setting up the Digital Crime
Unit.
• In 2018, Mizoram became the third state to announce the setting up
of a Digital Crime Unit to combat digital fraud and copyright theft.
• Indian law provides no statutory protection of trade secrets.