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Start Up Line Pre-Launch Phase Concept Ideation Business Planning Legal Entity Selection Regulatory Environment Surveys Key Registrations Founder Contributions ( Equity / In-Kind etc ) Business Formation IP Transfer / Creative

What is the role of the Start-Up Phase in a Start Up?

Before you launch your company, you’re already building it. This is the Start-Up Phase — the part where ideas turn into intent. It’s when you and your co-founders define what you’re solving, how you’ll do it, and what each of you is bringing to the table. It’s also when critical legal, strategic, and structural decisions are made — often informally, and often with lasting consequences.

This phase isn’t “preparation” — it’s formation in disguise. Every conversation, document, handshake, and email starts to shape the future business. Fail to record it, and you risk costly misunderstandings later. Succeed in structuring it, and you’ll lay the foundation for a fast, fundable, and resilient business.

Smart founders treat the Start-Up Phase like it matters — because it does. It’s where alignment, equity, structure, and strategy begin. If you get it right here, everything else gets easier.

Why the Start-Up Phase is important

The Start-Up Phase is critical to the business journey in so many key ways including:

◼️ Concept Development: it’s where the business idea is tested, shaped, and refined.

◼️ Founder Alignment: agreements made now can prevent co-founder conflict later.

◼️ Legal Readiness: early assessment of risks and regulatory requirements avoids nasty surprises.

◼️ Entity Selection: choosing the right legal structure impacts tax, liability, and investment.

◼️ IP Protection: early work needs to be legally owned by the future business.

◼️ Investor Appeal: clean pre-launch structuring shows professionalism and reduces deal friction.

Key Definitions

◼️ Start-Up Phase: the period before formal business formation — including ideation, planning, structuring, and pre-launch work.

◼️ Concept Ideation: the creative process of identifying and validating a business idea.

◼️ Business Plan: a strategic document outlining your vision, market, model, and roadmap.

◼️ Regulatory Assessment: early research into the laws and licensing that may apply to your business model.

◼️ Legal Entity Selection: choosing whether to form a company, partnership, or other structure — based on liability, tax, and growth strategy.

◼️ Pre-Founder Agreement: a written understanding of what each founder will contribute — time, money, IP, contacts, etc.

◼️ Company Formation: the formal legal process of incorporating the business with the relevant authority.

◼️ Key Registrations: securing tax IDs, business licenses, domain names, and any mandatory industry approvals.

◼️ IP Assignment Deed: a legal document transferring any pre-company IP created by founders into the new business.

How does strong Start-Up Phase execution Build Value in a Start Up?

Nailing the Start-Up Phase lays down the scaffolding for long-term success. The benefits include:

◼️ Professionalism: clarity and structure from day one signal maturity to investors and partners.

◼️ Founder Alignment: written commitments reduce confusion and conflict later.

◼️ IP Security: early work is safely transferred to the future company.

◼️ Compliance Preparedness: pre-emptive legal checks save cost and pain later.

◼️ Funding Readiness: clean structures, clear ownership, and a solid plan make capital easier to raise.

◼️ Launch Acceleration: structured beginnings let you move fast when you form and go live.

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