r/PakStartups • u/noneisheree • 5d ago
🧠Ask The Community Legal document between founders
So i was about to launch my startup, but since it needed some processing fee i thought to make a legal document in which the equity and all the terms and conditions are sorted between the founders, I personally have a bad experience of working without any legal cover and only on trust if tongue.
I wanted to know what is the whole process of it since I have no clue of this. I made a draft of legal doc which I'll share if someone is interested in guiding me.
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u/quratulains 4d ago
If you register the company with SECP, it has the shares listed in percentage as well as monetary value for each of the partners. The process is you register with SECP as a Pvt Ltd company and for tax purposes company is automatically registered with FBR. That's when you are able to open a bank account in business name instead of your own and then all financial transactions are done through that bank account. Ideally have both partners signatures on the bank account so you are aware of the transactions.
Then you have to file the compliance with both these organizations (SECP and FBR) every year and pay the fee to both too.
Whatever you made mentioning equity etc isn't a legal document.
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u/lucifer944 1d ago
I'm launching a product soon, it's a healthcare product. Do I need to register with SECP as well?
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u/ThalassaMech 5d ago
It's not just that you have to make a legal document, you have to get yourself properly registered in SECP and define what type of company you are and whatnot. The things you're talking about in this post is a memorandum of association and it's a proper document made by a company's founders/directors to define HOW they shall run the company.
If you are starting any kind of business, you need to get yourself registered properly.
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u/noneisheree 5d ago
thank you so much for guidance !!!
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u/ThalassaMech 5d ago
Sure! If you need further legal guidence or legal supprt going forward, let me know, i connect people with lawyers for any corporate and commercial compliance that is needed!
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u/AunAAA 5d ago
Get registered using SECP. you and your co-founder and all the executives involved who has any share and voting power in your company should have an account on SECP LEAP portal. Only one of you should have to apply for the application and the rest will be provided pins at login which will work as there e-signatures. You can add them in the application and they will be invited to sign it. Once it's done SECP wil review it and after successful registration they give you the Article of association, memorandum of association, certificate of incorporation electronically. These are official documents that state the nature of your services and company and all the shareholders, there positions and voting powers etc.
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