Starting a company involves diverse endeavours- having a product or service which is sellable, a business plan in place, giving the business a legal status, attracting investments, and raising funding! With a plethora of responsibilities, founders often end up ignoring the legal issues involved in starting a business, especially legal documentation required.
Lack of attention to this huge legal aspect of business often ends with founders paying huge legal bills for legal disputes that could have been avoided by having legal documents in place. It becomes indispensable for startup owners to consult startup lawyers right at the time of incorporation.
Legal documents are highly important for any startup that wishes to establish its product or services in an already functioning competitive market. Legal documents lay down the terms and conditions of any transaction the business is involved in. The necessary legal documents of a startup include:
I. Business Documents for Startups:
- Service Agreement
- Vendor Agreement
- MOU (Memorandum of Understanding)
- Service Level Agreement (SLA)
- Software Agreement
II. Website Documents for Startups:
- Disclaimer Policy
- Payment, Refund and Cancellation Policy
III. Investment Documents for Startups:
- Term Sheet
- Shareholders Agreement
- Share Purchase Agreement
- Share Subscription Agreement
IV. Internal Documents for Startups:
- Employee Agreement
- HR Policies of the company
- Offer Letter
- Non-Disclosure Agreement (NDA)
- Employee Stock Ownership Plan (ESOP)
A startup is required to deal with other vendors and sellers to purchase raw material for its product. The business may also need to license its IPR to vendors and sellers to use its invention which is protected by Patent; artistic, literary or musical work protected by Copyright; registered Trademark. This requires the startup to have business documents like vendor agreement, IPR licensing agreement, software licensing agreement, etc. in place.
Additionally, for a startup, the significance of preventing legal disputes is more, than finding a solution for a legal dispute at a later stage of business. This includes laying down the terms and conditions relating to the company’s website, investment, employment, internal dealings, etc., in form of written documents.
It is, therefore, better to consult a startup at the incorporation stage of business and have business documents in place. Personalised legal documents enable the business to focus on improving its product or service and expand its market. A startup lawyer drafts accurate legal documents for the business by identifying its requirements and customising the documents in accordance with the needs of a business.
A startup lawyer who holds experience in the legal documentation for small businesses and startups is able to understand the exact requirement of a business and draft the correct documents in the most precise manner, including all the necessary business aspects and limiting the liability of the business in case of future disputes.
A startup lawyer is able to draft the legal documents of a business in accordance with the product or service it is dealing in, the objectives of the business and the information involved and transferred to any third-party. MyAdvo, being a startup itself, understands what it takes for a young business to stand out in the market! MyAdvo eases the pain-points associated with business documentation and connects you with more than 1500 startup lawyers in India who hold experience in start documentation! Simply email us at email@example.com or call us at +919811782573.