A booming out-pour of Startups in Bharat is that the recent trendsetter. Recently, we've witnessed several low and status Start-Ups landing up within the Court of law fighting legal battles and sabotaging their name in public. so as to avoid such mistakes, here square measure “8 fast tips” that a Start-Up should do to avoid such ugly legal battles.
1. TO HAVE A STRONG LEGALLY BINDING AGREEMENT: One of the key issues that a Startup ought to look at is that the Founders’ Agreement. One ought to in an exceedingly means think about the Founders’ Agreement as a variety of “pre-nuptial agreement”. It ought to be clear, comprehensive, unambiguous agreement between the Founders of the Start-Up so as to chop down the probabilities of legal proceeding.
2. TO ABIDE WITH COMPLIANCES: A productive Start-Up ought to have an honest, wakeful and knowledgeable team of Advocates, Company Secretaries and leased Accountants so as to fits all the Legal and Government compliances, to avoid legal proceeding by the govt, Income Tax, ED, EOW, etc.
3. TO HAVE A ROBUST CUSTOMER REDRESSAL SYSTEM Treat your Consumers/customers with utmost importance and care by providing them smart services/products. this could decrease the probabilities of the consumer/customer to approach the buyer Forum for redressal.
4. TO MAKE TIMELY PAYMENTS TO VENDORS: One ought to confirm you pay your vendors on time failing that the seller would choose and approach the Court of Law for recovery of debts.
5. TO HAVE SECURE IP(Intellectual Property) POLICY: All the holding like Copyright, Trade Mark, Designs, Patents ought to be registered and may be specifically registered within the name of the Company/Founders and not on the name of the worker.
6. LACK OF EMPLOYEE DOCUMENTATION: Make sure that the documentation with the workers square measure done properly. Business Start-Ups typically encounter issues once they don't maintain adequate employment documentation. Consequently, Start-Ups ought to prepare a nucleus of employment documents to be signed by most, if not all, staff like staff enchiridion, supply letter, counselling, Non – speech act Agreement etc.
8. NOT HAVING THE CORRECT LEGAL COUNSEL: In a misguided effort to avoid wasting on expenses, Start-up businesses typically rent inexperienced legal counsel. instead of disbursement the cash to rent competent legal counsel, founders typically rent lawyers WHO square measure friends, relatives or others WHO supply steep fee discounts. In doing therefore, the founders deny themselves the recommendation of tough legal counsel WHO will facilitate the founders in avoiding several legal issues.
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