Saturday, August 15, 2015

5 essential doccuments to make a business legally sound

Nothing can slow down a business like the courtroom, particularly in India. It costs money, you invest effort and worst of all - it can shift your focus from growing your business to a petty matter. This is why every business must take measures to ensure minimal damage in case any relationship - between co-founders or with clients and employees - is headed the wrong way. The only way to do this is to enter into agreements as early as possible. While the needs of your business may well extend beyond the following four, these documents are essential to any new business:


✔ Founders' Agreement

Your co-founders may be your friends or family, but you can never be too sure. Disagreements can grow, over what the role of each founder is, what the vision for the business is, among much else. A Founders' Agreement will ensure that all partners are on the same page and have clarity on crucial aspects of the business.

✔ Employment Agreement:

Start-up hiring can be ridiculously informal. Two years in, the new HR resource will find that not a single early hire signed an agreement. This simply won't do. Think of all you're putting at risk every day you let an employee access your code, business plans or customer database.

✔ Non-disclosure Agreement:

If you believe your start-up truly is destined for greatness, you're making a mistake not signing an NDA before disclosing anything about it with potential tech co-founders and business partners, consultants and the like. You may feel awkward asking them to sign one, but it's part of the game. If they're professional, they won't mind one bit.

✔ Terms of Service/Privacy Policy:

Gone are the days when 'Customer is King' was just an adage. In the Internet age, you need to live up to it. After all, they can do serious damage on social media. So be nice and tell them the terms and conditions of using your website and what you do with information they provide you.

✔ Payment establishment discloser:

Money is the main factor of any business in the world , so transaction details should be disclosed for tax purpose as well as better audit purpose. 
Please revert in case you require any assistance for the above documents. If you don't need them now, do think of us when you do. Just send in a request and you'll have them in 2 to 4 business days at the best price in town.


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