We have lived through a century where the role of advocate has been downplayed. What we don’t realize is that they play a very important role in any country’s development with many of them sitting on legislatures and parliaments and assisting with new laws and amending current laws. Barrister Ahmed Uzair is a thorough professional, with outstanding legal acumen, and with impressively astute people-skills. He has studied law from University of law, Guildford, Surrey. He is currently working at law firm called AUC and deals with technology related companies.
Challenges and matters of startups:
Barrister Ahmed Uzair is consistent on the belief that 90% of the startups fail. One major reason of the failures is dispute between the shareholders. A lot of businesses exist as a result of affiliation and cordial terms between the owners. Majority of the terms and conditions are set on verbal basis. When the business progresses or even fails, the co-owner start disputing over trivial issues. Uzair suggests people to document the basics of the business to prevent and damage or dispute in the future.
Registration of a company:
Barrister Ahmed Uzair suggests that there is no accurate answer for registration of a company. Considering Pakistan, we have a complex structure of registration. However, Uzair advises that once the owners or shareholders have agreed oh mutual grounds and they are clear on the vision, they should register withing a year. Small and medium enterprises do not have to register at the time of inception. However, SMEs have to register their company when the business starts to grow or you are planning to involve partners.
How to get investment and funding?
The initial capital raised for any business is normally from the family or friends. If this is not the option, then people look out for external options. In most cases, when the business reaches out to certain life then owner seek funding. In Pakistan raising funds or investment is an event, whereas it is an entire journey of building relationships with the investors or creditors. Raising capital may even take months depending upon the momentum of business. To sum up, the basic way to seek investment is debt based and then equity based.
Taxation for SMEs:
The taxation system of Pakistan requires undivided attention and substantial reforms. The structure is not entrepreneur or startup friendly particularly the sales tax. Uzair discussed about the policy of FBR, which has to be extended further. This policy exempts startups from income tax for a period. However, sales tax is still applicable and with the same percentage as for any other company. It is very important that companies understand the importance of taxation. Investors don’t like to associate their selves with non-tax complaint company.