Startups usually run on tight money and want to spend sparingly but it is common these days, to see startups involved in legal conflicts and shelling out a lot of money. It is advisable to seek legal advice for a Startup company at the initial stage itself.

Startup companies have several phases each phase has a different legal requirement. For startup at nascent stage important compliances are to procure business license, taking care of accounts and taxation, drafting vendor contracts etc. whereas, for a startup company who want to raise venture capital or PE funds it is important to understand rights, privilege, and control of investors in venture capital contract as the control of the company usually shifts in the hands of investors.


Another issue faced by startups is company formation issue. You can seek an online legal solution for your formation related problems like drafting founder’s agreement, equity division between employees and founders, provisions for replacing the CEO, protection of intellectual property, altering budget of the company etc.

As a startup grows, a number of people also increase and the key people who were in employment at the nascent stage of business might leave. It is very important to have a stable structure (employment contracts, equity arrangements etc.) to accommodate the change and give proper authority to the CEO to hire and fire people without any legal consequence.

“Prevention is better than cure”, it is a well-known proverb which catechizes that startup companies should seek expert’s legal advice and legal solutions to all the probable problems. An expert can help you with legal documentation, online legal solution, drafting agreements and legal advice on Digi news.

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