Your address will show here +12 34 56 78

Damn! This was one of my startup ideas! Have you ever said this to yourself? Have you ever had an Idea and then discarded it within few seconds without realizing their full potential? If yes then don’t worry, you are not the only one. I have heard people saying – I had the same startup idea two years ago in my dorm room in college. There are a dozen successful companies that are working on these ideas that were born and immediately discarded in many dorm rooms. The fact that not even a tiny percentage of that money is reflected in your bank account affirms the fact that ideas not followed up with proper execution have zero value. Ideas in their initial stage are like infants, in that they are unable to stand up and walk on their own. They need to be nurtured with patience. They have to evolve with time in order to take off. If you patiently evolve your product and idea, you might have a shot at success. Here is how to cope when the going gets tough:

  • Try not to give up: You might want to give up when things don’t turn up the way you want to. But do not give up because of the problems; they are a part and parcel of every startup. You should only consider giving up if you have lost all faith in the startup’s vision.
  • Do not run after a different idea: When your original idea is giving you problems in execution, your interest will suddenly waver to more attractive ideas for you to go after. And it will seem to you that your new ideas won’t have problems that you are facing with the current one. Which is not so, hence it is better off pursuing your current idea where you know the underlying problems rather than pursuing a new one where you have no idea what problems may crop up.
  • Be open to making minor modifications to your existing idea: While you should not go into a completely different direction, you should be open to making minor changes in your idea or business model as you iterate and get customer feedback.
  • Don’t be tempted to raise money to solve your problems: When you are not making money from the market, you might be tempted to raise it from investors, and you might very well be successful in raising money despite your problems. But the investment also brings higher accountability and pressure.
  • Don’t be tempted to spend money to solve your problems: Some problems cannot be solved by throwing money at them. You can get users through ads but they will leave soon if your product is not good enough, you can’t nail traction without nailing your product first. Hiring more people than absolutely required will shorten your runway and add inefficiencies in the team.
  • Be easy on yourself and give yourself some time: This phase can be one of the most frustrating ones in a startup. You will not get solutions on demand. You have to give yourself time to experiment different things and find out what works.

Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly. For any Legal and Accounting support, Happy to help you, let us talk 🙂

For more interesting updates follow us on Twitter, Facebook, LinkedIn and Google+  

It is a summarization of an article from Your Story. For more information, visit


Agreements, Funding Compliance, Uncategorized
Every Venture wanting to Raise Funds has to invest a lot of time and effort to raise money to scale and keep the business going. All the effort and time invested can go for a toss, if you miss one important but under-estimated aspect. Every VC/Angel investor, before pumping in their money, will perform a due-diligence process. This process varies in tenure and complexity based on the industry, nature of the transaction, and also the stage of investment. Any deal is successfully closed, only after satisfactory-completion of due-diligence, failing which, the deal drops dead. Sometimes, they get a legal opinion, before proceeding. Here are a few points for startups to focus on when setting their house in order:

  • Incorporation (legalization): The most basic mistake that most entrepreneurs commit is their failure to legalize their entity and because of this has been the bane and downfall of many a startup. A legal entity adds professionalism to the startup as well as the confidence to the other transacting party.

  • Revenue registration/dues: The one thing that every person hates is Tax. Yes, that obligation to pay the government whenever due, no matter what. But it is prudent that startups get their revenue registrations in place first, as even non-filing/registration, attracts the long arm of the law.
  • Founders Agreement: Founders agreement is really important for any startup. No one remembers what they have typed in their mail the previous night, let alone verbal agreements that are the norm during the startup phase. Putting things in words is not a reflection of the lack of trust, it’s just prudence.

  • Legal issues: No matter how frivolous, real, or imaginary; all it requires to scare away potential investors is to utter lawsuit. Let your legal health do the talking, rather than trying to convince someone to put their money in a place, which is replete with legal landmines.
  • Organization: After you have incorporated your startup, you need start striving to put relevant processes, procedures, etc., in place from the moment you set up shop.
  • Accounting: Pull up your socks and start keeping account of all your income and expenditure. Maintain Income and Expenditure statement, P&L Accounts, other Financial statements.
  • Employee agreements: Every employee who works must be contracted with basic clauses to protect the interests of both the parties. Also, records of past employees to be maintained. Basic compliances like Labour law, PF etc., to be met.
  • Intellectual property: Ownership of Intellectual Property, including non-exclusive licenses, infringement, inappropriate use and potential action, have to be dealt and agreed upon.
  • Third-party agreements: The same rules apply for every third-party that transacts with the enterprise. Vendors, associates, affiliates, contractors, and other partners need to sign proper agreements, with non-disclosures, how the relationship is defined, responsibilities, and IP assignment.
  • Previous fundraising documents: If you have already raised funds, then future investors would like to know the details of fundraising, utilization, its impact, etc. Put these in order so they can understand them thoroughly. It is a summarization of an article from Your Story.

Wazzeer is vouched by Entrepreneurs as the reliable Legal and Accounting Partner. We would be glad to provide you with Funding Due-Diligence and Compliance part. Let’s Connect!

Legal, Start up Lessons
Setting up your startup involves a lot of work and effort. Many things need attention, including developing a proof of concept, finding product/market fit, and hiring the first set of employees. With these many things to be handled, slips are bound to happen. One of the most common areas where most startups make a wrong choice is establishing a solid legal foundation. Some of the most common legal mistakes made by startups:
  1. Wrong legal entity: Choosing the right legal entity right at the outset is important. Some structures to choose from include a Registered Company (Public/Private Limited), LLP, proprietorship, and partnership. The more widely accepted one is a registered company, especially for any deals with foreign clients.
  2. Not tracking expenses: Many try and gather all receipts only when tax returns have to be filed! What is not documented is not deducted, and therefore, it is like leaving money in the open.
  3. Lack of documentation: Each and every interaction, be it meeting minutes or anything else, must be on the record. It is important to have all documents in order at all times. Legal due diligence can make or break an investment deal.
  4. Missing founders agreement: The founders agreement should contain all essential clauses such as ownership, vesting rights, and the roles and responsibilities of each founder, including salaries and terms of employment.
  5. Mixing capital and revenue expenses: What expenses are considered assets /capital expenditure and which ones are called revenue expenses deductible in the P&L A/c. Higher-value items that will last significantly longer than one year are called Capital Expenditure/Assets/Equipment. Things that are consumed over the course of a year come under revenue expenditure. If the equipment or capital items are by accident deducted as revenue expense, the tax department can determine that the expense has been improperly characterized and a deduction does not apply. Hence, be careful in accounting all such expenses.
  6. Mixing personal and business expenses: This can be a source of confusion when taxes are being filed, and in some cases, can lead to deductions being disallowed on an ad-hoc basis by the revenue authorities and higher tax outgo as a result. The company should therefore have a financial account at the onset and separate records as well.
  7. Not protecting intellectual property: Intellectual property (IP) is a startup’s most valuable asset. Trademarks, patents, and copyrights are the three essential components of IP. It is essential to not let anyone claim a right to your IP. Non-disclosure agreements are a way of ensuring this. Startups often neglect the protection of IP and suffer later.
  8. Non-compliance with securities laws: Startup founders commonly issue stocks to angel investors, family, and friends. However, stocks issued without complying with specific disclosure and filing requirements under securities law can lead to serious legal issues at a later stage.
  9. Missing regular tax payments: Businesses, be it sole proprietors or otherwise, are required to pay taxes in advance. This means they need to determine their taxes for the year in advance and pay as prescribed installments.
  10. Not ensuring professional help for tax-related issues: A startup must appoint a tax consultant to ensure all regulations are being followed. This will also give you more time to focus on building your company, forming strategic relationships, and other things.
    It is a summarization of an article from YourStory. For more information, visit

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

Funding Compliance, Startup Funding Paperworks
The ‘angel tax’ for investors, who provides funding for startups, has been removed by the Government, to boost entrepreneurship and job creation in the country. Funding given to startups which are notified under the plan mentioned by PM Narendra Modi in January, will not face tax even if it exceeds the face value.

Unregistered venture capital funds such as Resident angel investors, domestic family offices or domestic funds can now relax and not worry about the invested amount getting taxed. Under existing rules, funds raised by an unlisted company through equity issuance are covered under this tax to the extent the amount is in excess of the fair market value. In case of extra inflow, it is charged the corporate tax rate, resulting in an effective tax of over 30%.

In many cases, the valuation of startups is far in excess of market value as it is based on the promise of the idea and not the immediate worth. In such a case, the startup would end up losing a chunk of the inflow to this ‘angel tax’. This has been long awaited and is a very welcome step. The abolition of this so-called ‘angel tax’ has been a long-standing demand of the industry,? said Amit Maheshwari, partner, Ashok Maheshwary &Associates LLP.  

It is a summarization of an article in Economic Times. For more information, visit

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

Start up Lessons
Ride hailing service Ola, is going to add a new service to its kitty. Now you can rent Ola cab on an hourly basis, in a marked contrast to its core business of point-to-point travel.

Need a car on a standby to take you around? Now rent a cab on an hourly package with the all new Rentals. Available for local travel in select cities, said an update on Ola’s Google Play page.

Ola, a home-grown unicorn valued at $5 billion, has a strong competition with Uber, the worlds’s most valuable start-up at $68 billion. Recently, Ola had also started piloting an outstation service in Delhi and then expanding to other cities like Mumbai and Bangalore.

The move is expected to boost Ola’s bouquet of offerings and help the company evolve into a one-stop service provider for road transport solutions. The company has been entering categories that are yet to be explored by Uber to gain market share. Presently Ola and Uber offer on-demand service taxi booking.

However, Ola is also providing their customers the privilege of advance booking unlike Uber. Earlier in March, Ola introduced its cheapest offering Micro at Rs.6 per km to take on Uber’s cheapest service UberGo at Rs.7 per km, a move that has helped the company turn the tide in its favour. In response to Micro, Uber has also slashed fares for UberGo to match Micro in Delhi, one of the top three markets along with Mumbai and Bangalore.

  It is a summarization of an article in Live Mint. For more information, visit

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

E-commerce Taxation
The draft model law on goods and service tax (GST) has proposed bringing all online buying within the purview of the proposed levy. The move will end uncertainty over tax on purchases from e-commerce sites.

The draft bill has proposed tax collection at source for e-commerce, which means that any payment made to a supplier would be subjected to the provision at a notified rate. Experts said the inclusion of e-commerce under the ambit of the tax will pose a huge burden on these companies. “This will mean significant compliance burden on e-commerce companies as many of them deal with thousands of vendors. Further, this may lead to refund situation for many suppliers who operate on thin margin. In addition, e-commerce companies will need to file a statement providing details of all supplies made through this platform,” said Pratik Jain, indirect tax leader at the consulting firm. The government is proposing to cast the net wider by including several more players within GST.

Instead of a threshold of Rs 1.5 crore for central excise, the draft bill has proposed a Rs 10 lakh as threshold and any unit, service provider or retailer above the floor will be required to register and will be subject to tax. GST, which has been in the works for a decade, is seen as one of the most important tax reform initiatives post-independence.

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

Legal, Litigation
The legal atmosphere of the country is rising with Amazon recently filing a case against Gujarat state government for imposing Entry Tax. This is a tax which is levied on products or goods which has been purchased online and is delivered from outside the state.

According to a new report by ET, Amazon is only a facilitator, it’s an online portal where buyers and sellers meet, and it itself doesn’t import or consumes any product, and the company as such has nothing to do with the goods.

However,Gujarat government has a different take on thisIt believes that this tax will protect offline retailers from competitive discounts that online sellers offer, thereby taking edge over them. Ecommerce in India is projected to reach $119 Bn in next 4 years. As per Nasscom, creating such barriers will not only impact the financials of the ecommerce companies but also restrain new and foreign players from entering into the market.

The market is already trying to cope with burgeoning losses, low investor sentiments and rising consumer expectations in terms of delivery and quality. It is a summarization of an article from INC42. For more information visit,

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

MSME Registration
The government is considering policy changes to broaden and energise one of PM Narendra Modi’s initiatives, Startup India, to include a bigger number of startups under the ‘medium industry’ category that would be eligible for public procurement incentive and preferential benefits.

A medium enterprise as defined in the Micro Small and Medium Enterprises (MSME) Act should have investment of not less than Rs 5 crore and not exceeding Rs 10 crore in equipment if it operates in manufacturing space. In services sector this limit ranges from Rs 2 crore to Rs 5 crore.

This will mean most startups will miss this cut off. Under the action plan, a startup is defined as one having a turnover of more than Rs 25 crore and not be older than five years from incorporation date. In March this year, after Prime Minister Narendra Modi launched the Startup India initiative, the MSME ministry issued an order to all ministries and central public sector units to relax conditions related to prior experience and turnover for startups in all public procurements.

The idea behind this benefit was to provide an equal platform to startups in the manufacturing sector vis-a-vis the established companies and enable startups to participate in such tenders with relaxed eligibility conditions. It is a summarization of an article from Economic times, for more information visit

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

E-commerce Taxation
Ecommerce firm ‘Flipkart’ can be in trouble because of its revised return policy. Flipkart was threatened by merchants to either leave or be inactive on the online marketplace, objecting to new conditions imposed by the company on them. Flipkart had earlier announced a revised return policy for buyers on June 6, 2016.

Wherein, it stated that the customer would now return the products within 10 days, along with return shipping, this led to additional operational expenses for sellers. The company had decided to increase the sales commission it levies on merchants, by up to 5% in some categories, as well as charge them a shipping fee, a reverse shipping fee, and a collection fee on every product returned by customers, effective from June 20. According to ET, a trade association, representing online vendors said that merchants have decided to stop selling on flipkart as their cost is going up.

They also said that earlier flipkart used to charge fee of 1% of order only when they were at fault, but now flipkart will deduct shipping charges and collection fees from sellers (in case of returns), which will be huge since return percentage ranges from 8% to 10% (deliveries) in most of the categories. The merchant association also informed that the vendors are not upset with the increase in commission but with the change in return policy. A senior member of the All India Online Vendors Association (AIOVA) said, about 300 of its 1,000 merchants have decided to leave flipkart as their operating cost will become much higher.

According to Flipkart, its new policy will offer predictability and control over payments for sellers. It has advised vendors to ensure effective cataloguing and packaging, and prevent mis-shipments to avoid product returns.     It is a summarization of an article in INC 42. For more information, visit

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

Start up Lessons, TAXATION
Equalisation levy on digital ads were introduced in the Indian ‘fiscal budget’ presented on February 29, 2016. From June 1st, an equalisation levy of 6% will have to be deducted by a business entity in India whose aggregate payment in a financial year exceeds INR 1 lakh for specific services to a non-resident service provider. The specified services covered by the levy include online advertising, provision for digital advertising space and any other service to be notified by government.

How does it impact Indian startups

Online marketing is one of the most used form of marketing and is very important for startups because of its comparatively lower cost and targeted customer reach. As we all know that Google and Facebook ads are the most effective platforms as of now, and this levy will affect the small startups rather than the giant-sized Facebooks and Googles of the world.

The startup, who mostly sustain on digital marketing, will now face the burden of ‘extra cost’ from these giants. The equalisation levy would translate into startups ending up paying six percent over the 14.5 percent service tax. Thus, making digital advertisement more expensive for local Indian advertisers. The final cost depends on the negotiation between the startups and online platforms. But this will further financially rip the fund-deficit startups that will have to eventually cut down on their marketing budgets.

Any cut of digital advertising budgets will affect customer acquisition and growth of the company.   It is a summarization of an article from Your Story. For more information, visit

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂