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Why legal services are important for startups in India

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“Legal and financial aspects of a startup are like lungs, they’re essential for survival!”

Every business operates under the country’s legal framework. Therefore, it is very crucial for the enterprise to register under various relevant statutes. And also to comply with all regulations. Today, law has become very stringent. Additionally, heavy penalties are levied in case of defaults. As a result, this can affect your business with a higher magnitude.

There is always an advantage for any startup to work under the legal structure. Following rules and regulations and opting for legal services gives a startup identity under law. As a result, the perception of stakeholder is also more positive towards the startup. Moreover, financial services help you to monitor and analyse the finances. Alongwith that, you can assess the liquidity position of the company. Legal services and financial services enable startups to mitigate business risks. And also be prepared.

Now let’s say you come up with a great idea and decide to start selling a new product. Or you begin working on a new technology platform. In both cases, it is important to have adequate legal services. Here are some of the areas where you definitely will require legal services:

Startup incorporation and structure:

Based on the nature of your business, an optimal legal structure is required to be drawn out to ensure maximum benefits. Thereafter, incorporating the entity is the next step. So, all of this requires professional assistance.

Co-founder agreements:

The most common reason for startups to shut down, not only in India but even globally, is co-founder conflicts. Although, majority of these conflicts could have been completely avoided. Only if the founders would have taken the effort of drafting an airtight co-founder agreement outlining responsibilities and amicable dispute resolution mechanisms. Legal services include drafting such agreements. As a result, avoidable conflicts can indeed be avoided.

Vendor agreements:

Chances are that no matter what service/business you are in, you will need vendors or service providers at various points. Having a vendor agreement in place is important because it helps set the expectations between the parties when it comes to the type and quality of services provided, the duration of services, the cost and payment terms, and liability considerations if things don’t go as planned. For example, does your agreement with your graphic designer contain a clause which states who is the owner of the artwork created by the graphic designer? All of this requires specialised legal services to protect your startup from future litigation.

Legal compliances:

Compliances are only increasing with each passing day. And the penalties for default are also increasing. Having appropriate legal services to take care of such compliances has become a necessity. Especially for startups.

One such company that can help you with all legal services and financial assistance is Lawyer2CA®. This is a company which operates with a unique motto. And their motto is that compliances don’t ever become a burden for their clients. Additionally, they design and implement processes in such a manner that the normal functioning of the business is never affected. Also, their services can help you to deal with all financial and compliance matters associated with your business.

Lawyer2CA® is a global fin-legal service provider. They provide expert consultancy in setting up of business in:

  • India,
  • Singapore,
  • Dubai,
  • Estonia,
  • Netherlands,
  • USA,
  • Canada, and,
  • UK.

Additionally, their areas of focus are income tax advisory, GST advisory, contract drafting, IPR advisory, immigration services, licencing and compliances.

Also read: how to make a legally enforceable will in India online

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