Lawyers Role In The Development Of Startup

Written by:

Adv Tanvi Malik

Updated: 06-03-2024

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When an entrepreneur starts his business, his primary focus would be on the quality of his product or the kind of service he is selling, or any type of technicality related. On one hand, it is important that he prioritises these aspects of his business, however on the other hand, it is necessary that he properly follows the legal aspects of his business.

A trusted startup lawyer would help you prevent from violating any agreement or business laws. Here under we shall discuss role of a lawyer in navigating complexities of the business world.

1. Foundation Of The Startup

A lawyer would advise the prospective entrepreneur regarding the ideal structure for his or her business, in the form of sole proprietorship, partnership, limited liability partnership or even company, as well as an advocate can also assist an entrepreneur to decide as to how he or she would structure investment for the business business, issues of debt or equity, etc.

While raising funds for business, founders and investors must agree to matters related to equity, rights and obligations, hence forming the agreement for investment. At this stage, an experienced advocate from the Sharks of Law could help negotiate the terms of the agreement and explain you the legal implications about the rights and obligations mentioned in such agreement.

2. Co-Founders’ Agreements

Dealing with the numerous matters related to a business on your own could be taxing, thereby you may feel a need to appoint a co-founder for appropriate working of the business. A lawyer from the Sharks of LAw could offer you necessary legal counsel regarding the division of benefits, rights and obligations, as well as other other terms and conditions of the agreement.

3. Laws related to the Employment

Laws related to the employment could be very complicated, specific and required to be dealt with caution in order to avoid lawsuits from the disgruntled employees. An experienced business lawyer for startup could guide you through laws governing the terms such as employment, termination, wages or paid/unpaid internships as per the terms of the employment.

As per the law of the land, the rights of the employees are of significant importance, and there could be a situation where such rights are violated unintentionally as one may not be aware of the necessary provisions of the employment law. In case, there is a dispute as mentioned, your lawyer would be able to mediate between the startup and the aggrieved employee, also could help guide the startups to initiate proper investigation regarding such alleged misconduct, offering compensation, if required.

4. IPR Laws

A startup could be based upon some innovation or invention, thus making it absolutely necessary for the startups to protect such intellectual property from others benefitting with the profits which legally belong to the entrepreneur. In order to prohibit such unlawful use of another’s property, many laws related to intellectual property rights have been provided by the legislature, including the Copyright Act, 1950, Patents act, 1970, Trade and Merchandise Marks Act 1958 and Designs Act, 1911, etc.

Dealing with the registration of patent laws, as well as other necessary provisions, the startups must seek legal consult from experienced lawyers before they decide the identity of their brand as well as logo, who could offer appropriate advice if such logo or branding already exists or not or if your patent or copyrights are being misused by competitors.

5. To deal with the legal Regulations with help of a Corporate Lawyer

With businesses going global, the legislature has introduced numerous legal regulations and laws, following which the businesses would have to operate. Such regulations include the Indian Contract Act, Companies Act, Consumer Protection Act, Information Technology Act, Industrial Disputes Act, Foreign Trade Act, as well as many other provisions.

It must be understood that it may not be possible for a layman who has just entered the the business field with a new startup oe even is the owner of an already established business, to follow all these regulations to the T without committing any error. Also, the taxation system must not be taken lightly as well.

Startups would, thus require tax lawyers, or there may be a possibility that they would at some time in the future face legal complications.

6. Risk Management

A startup lawyer would also play an important role to help your startup with risk management. A business lawyer for startup would be familiar with the issues faced by a startup and shall have a deep understanding of the related legal requirements, thus, could help you protect from such potential legal risks. A Startup lawyer near you will be able to offer necessary advice as well as guidance over the issues related to the structure of the business entities, drafting various agreements for the startups, as well as implement necessary policies and procedures minimising future legal exposure.

CONCLUSION

Summing up, a legal counsel shall be a vital asset for a startup. Expertise as well as the guidance offered by a startup lawyer near you would help assist through the numerous laws and regulations, hence ensuring proper compliance and decreasing legal risks. From issues varying from drafting contracts, protecting intellectual property as well as advising the startups about the corporate governance and resolving issues, an experienced corporate lawyer could offer necessary support throughout the working of the startup.

Sharks of Law offers you experienced startup lawyers, assistance from whom will help you focus on your core business activities, as you would have assurance that you have a trusted advisor by your side, safeguarding your interests, mitigating any prospective legal pitfalls, thus paving way for success of startups.

Email:-helpdesk@sharksoflaw.com

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