Here’s a legal checklist of different issues and tips that an entrepreneur or startup founder should know and consider before forming a company in Malaysia.
All posts in Startup Issues
What does a ‘cofounder’ title mean in a startup company?
People usually ask what does a “cofounder” title means in a startup. There’s no legal definition that makes a person a ‘founder’. So what does it mean really?
A legal guide to startup fundraising in Malaysia
Fundraising is one of the challenges that startup founders need to go through in their entrepreneurial journey in growing an early-stage startup. Fundraising is a regulated activity in most or all countries. Different countries have laws that need to be satisfied to ensure that your fundraising is all within the law. Here are ten things…
Why you should still apply for government funding for your startups
Many founders I meet get frustrated when I suggested that they consider government fundings for their startups. I recall a recent chat I’ve had with a startup founder that complained that applying for government funding means he has to do “donkey work”. I mean, it can be exhausting having to put up the necessary application…
Can startups just walk away from an investment term sheet?
You and your co-founders have been pitching for the past several months, and now you’ve finally got the investment term sheet from venture capital. You later sat down with the signed term sheet to discuss the next steps with your team members. Eventually, after asking around for feedback and inputs you and your team later…
What are reserved matters, and how does it work for startups?
Reserved matters are a standard clause that can be found in a shareholders agreement, especially when dealing with more sophisticated investors like venture capitals and institutional entities like corporates. What is a reserved matter, and what is it for actually? The reserved matters set out a list of actions or items which the company cannot…
What startups should know about dealing with angel investors
It is common for an angel investor to invest in an early-stage startup especially as one of the first investors in a pre-seed or seed funding. An angel is typically your “rich uncle” who is a high-net-worth individual who decides to take a chance on you after hearing your startup pitch. And he would usually…
When you should get a lawyer for your startup
Obviously, I am biased for saying this, but you should get a lawyer as early as possible before you start a company. A good startup lawyer can help you avoid major pitfalls that will cause you to lose your company. Here are a few reasons why you should get a startup lawyer as soon as possible…
Why startups shouldn’t use their investor’s company secretary
You’ve been pitching your startup for a few months now, and finally, an angel investor has agreed to invest in your company with the investment amount you needed. In the term sheet, the angel investor also requires you to change the company secretary to the investor’s corporate secretarial firm instead. This is usually not a…
Why startup founders should not buy an “off the shelf company”
Setting up a company can be costly, especially for many bootstrapped founders. Of course, you are trying to save money and all, and that’s understandable. Bootstrapped founders do this by buying a shelf company or ‘off the rack’ shell company offered by corporate secretarial firms which I don’t think is a good idea. Let me…