Start-ups are one of the fastest-growing businesses in India. Some start-ups start strong and well but fail because they forget to get the necessary legal documents or rights. Legal documents secure the base of start-ups and make their foundation strong.
Many of the start-up founders don’t know what, how, and where to get the legal documents from.
In this article, we shall see the essential legal documents that all start-ups must-have.
Adv Viraj Ravindra Patil Viraj explains this article’s contents, including essential legal documents for start-ups.
Viraj Ravindra Patil LLM ( Human Rights & International Law) – Advocate Bombay High Court & Trial Courts; an excellent start-up attorney.
Having a legal adviser from the beginning of the start-up is a wise investment.
Choosing the right kind of lawyer is essential as you must develop a good relationship between the company and the lawyer and find it comfortable to put your trust and confidence in them.
ParthaSaarathi is a Legal e-consulting LLP firm with a leading team of professional Lawyers in Navi Mumbai where excellent and skilled lawyers and advocates like Adv. Viraj Ravindra Patil works and provides the best services to their clients.
9 Essential legal documents:
A trademark is a recognizable sign, phrase, or symbol that denotes a product or service and legally differentiates it from all others of its kind.
Trademarks are the first thing that sets the foundation of a start-up. Trademark patents and design registration are essential that will provide value and security to your start-up.
Start-up companies frequently overlook the importance of establishing a solid corporate structure.
These firms’ founders are jeopardized if they fail to incorporate a distinct legal entity for their existing start-ups. Paarthasaarthi, which has the best lawyers in Navi Mumbai, will help your start-up prepare the articles for incorporation, which include – the corporate name, the corporation’s purpose, the authorized capital, name, and address of the registered agent.
3. A non-disclosure agreement
A non-disclosure agreement is made between the start-up and its investors, stakeholders, third parties, and other entities wherein the information between both parties should be confidential and secure.
NDA acts as a shield or protection for the start-up, its employees, investors, and clients. NDA protects the intellectual rights of the company.
4. Employee contracts and offer letters
Employee contracts and offer letters are essential in any start-up as they will secure a relationship between you and the employee.
These employee contracts and offer letters are crucial because, during a grievance redressal, this document will help you and the employee to clear out the matter.
Maintaining order and discipline in the workplace is essential; therefore, bylaws provide rules and regulations by which the employees must abide.
Bylaws also provide space for every company member to voice their opinion and creative ideas.
Voting rights are an essential part of the bylaws as it helps the members of the start-up to vote and choose the board members and manager-level individuals,
6. Intellectual property assignment agreements
Suppose you are looking to secure an intellectual property assignment agreement. In that case, paarthasaarthi LLP, which has the best lawyers in Navi Mumbai, will help you get complete and detailed ownership of your start-up’s intellectual property rights.
If the portfolio assessment of the start-up is done perfectly, then it will gather the attention of the right kind of investors.
Two kinds of intellectual property agreements are considered:
- Technological assignment agreement – this agreement is formed between the start-up and the shareholder; in this, the shareholder assigns their IP to the company, and it’s applicable only if the employees create innovative products.
- Intellectual property assignment agreement rights – in this agreement, investors look out for whether your start-up is capable of attracting beneficial investments.
7. Business plan deck
A massive mistake that start-ups make is by setting up’ sole ownership’ instead of ‘private limited incorporation,’ which leads to huge losses and high-income tax returns.
Creating a business plan after thorough research and examination will help the start-up in the long run. At Paarthaaarthi, with the best lawyers in Navi Mumbai can advise you in framing a good business plan that will be beneficial to the start-up in the long run.
8. Founders agreement
A founders agreement is a legal document that protects the founders of the start-up from fighting with each other due to any issues arising in the company or their relationship.
A founder’s agreement is a set of terms and conditions that defines the relationship between all of the founding members of the start-up and the company.
9. Terms and conditions
The critical aspect of every business is maintaining the website for your products or services. It expands your reach to potential buyers and protects you from unintended conflicts.
It specifies all liability limitations, privacy rules, disclosures, jurisdiction for filing clashes, copyright claim protection, and usage of website items.
The terms and conditions of use are clearly stated on websites, as is the tie between the buyer and the company.