LEGAL DOCUMENTATION: The Writing on the wall!
Ever gotten fed up of the bulky agreements you were made to sign while entering into a deal? You didn’t even skim through it, let alone read every clause and understand its implications! Your experience with such agreements have convinced you of one thing - don’t waste your time and money on legal documents?
We’ll tell you what - that thought right there - almost a criminal idea! Every Startup, Company, Organisation entering into a business deal needs its legalities covered. In order to ensure that all your legal concerns are taken care of - getting tailor made agreements are a necessity!
While there are multitude of documents, certain legal documents are necessary for a startup!
Most people tend to ignore the most important aspect to run a successful business- legal documentation. While you start off with limited access and funds, you intend to grow multi-folds. It is important to ensure that your legal requirements secure you and your business.
Documentation is one of the most important aspects of legal structuring! There is a list of legal formalities that ought to be completed before starting-up, in order to prevent any kind of legal hassles in future and documentation forms a crucial part of the list!
These documents are essential to a start-up, which include-
Getting into a business is always a tricky situation. Most traditional businesses run on trust. With the advent of technology in the field of business, it has become cardinal to ensure that all aspects of a business are secured through legal documentation. Documents like Memorandum of Understanding, Service Agreement, Vendor’s Agreement etc., help in establishing set guidelines for dealing with different businesses.
A motivated, protected team forms the basis of a company. To protect an Employee’s interest, while protecting the Company, it is important to ensure that certain documents are in place before you grow. These documents are required to oversee the internal happenings of a start-up and to create a smooth flow of operations among the employees, while protecting the Company’s functioning. Employee Agreement, ESOP, etc. govern the role of an employee and the benefits they’re entitled to.
Apart from a breakthrough idea, every start-up requires external funding. In order to obtain that, a business must be able to convince an investor to participate in their growth by financing them. Investors require documents like Term Sheet, Shareholders’ Agreement etc. before funding.
In order to avoid falling in the legal trap and nurturing your business well, it is important to get these documents customized and prevent your business from failing.