Factors taken into consideration for choice of organization

Two cousins in Thane want to open a cloud kitchen. One wants to register a company because it sounds serious. The other says a simple partnership deed from a stamp vendor will do. A lawyer friend asks only one question first: what happens if the kitchen owes a supplier two lakh rupees and cannot pay? The answer to that question, and a handful like it, decides which structure is right. This topic gives you those questions and shows how to answer them with sections, not slogans.

In two minutes

Choice of organisation is a trade-off between liability, legal personality and continuity, cost of formation and compliance, size and capital needs, control and transferability, and the nature of the business.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Contract – II on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.