While starting a new business, the founders very often pay full attention to the product and marketing related issues but ignore the importance of the legal issues which are of equal importance. Even a small legal point can create an adverse ripple effect which may make the whole startup unviable or unauthentic. It is always better to consult a legal expert from the first day you plan to start a new venture.
Here are the 8 main reasons which will highlight the importance of hiring a startup lawyer for your new expedition:-
1. Checking the viability of your Idea
The first step of starting a new business or a startup is to check the originality or viability of your product or business. The legal expert will also help you in finding the legal feasibility issues and sorting them out before you start your business.
2. Incorporation of your business firm
The firm has to be registered with the Registrar of the companies. The registration will enable you to distance yourself from the identity of the company as after the registration, your company will become a legal entity which can enter into agreements and take loans from banks and you will not be held liable for the agreements entered by your firm. He will advise you regarding the form of legal entity you want to form – Limited Liability Partnership (LLP), Sole Proprietorship, Partnership, Private Limited or Public Limited Company etc.
3. Handling Employment issues
Hiring employees for your startup may not seem too challenging a task but it has its own ups & downs. The legal expert helps in getting all the verification done regarding the authenticity of the employees. He will also help you in drafting the employment agreement, code of conduct protocols, remuneration agreement and other legal documents which will prevent any employee to misuse your intellectual properties like trade mark or brand name. The legal expert will also help you in complying with the minimum wage law so that you are not caught unaware due to this petty issue.
4. Registration & protection of your Brand Name
Getting your desired brand name and trade mark is of utmost important because you have to invest your efforts & money in making it a brand and if later it is found that it belongs to somebody else then it will be a total heart-breaker. The legal expert will guide you in getting your trade mark registered and with other copyright issues so that you can sleep in peace without any tension.
5. Regulatory issues
Every business is governed by the rules & regulations issued by the Government of the state where the startup is having its registered office. The legal expert helps you in getting accustomed to these rules so that running the business should not become a night mare due to legal complications or non-conformity of prevalent legal framework.
6. Data Privacy & Duplication issues
7. Handling the Share distribution among shareholders
After raising the capital from the shareholders, your company needs to issue share certificate to them. The legal attorney will help you in finalizing the suitable share price for your shares plus he can also advice you when is the appropriate time to issue shares as this should not be done in a hurry. He can help you in issuing guidelines regarding the eligibility criteria for the founding members or any other person who is desirous in investing in the company for receiving share certificates.
8. Arrangement of business finance
Every 2nd startup shuts down its operations before it’s 1st anniversary due to this very reason. The Finance is the blood which needs to be pumped into the veins of the startup to help it flourish. Your lawyer can play an important role in raising capital for your business. He can help you in checking the legal status of the Venture Capitalists or Angel Investors who are offering you their kitty to invest in your startup. Further, he can help you in choosing among Equity, Debt, VC, AI or Bank loans and maintaining an adequate ratio of all these various sources of finance.