Startup and Legal Advisor:
Startup refers to the company in the early stages of operation, in other words startups are young companies found to develop a new product or service. These companies start with high cost and limited returns. Generally in a startup, during the initial phase there will be greater loss or fewer returns. After starting a business, there is a need to hire employees and set a team. The people you hire depend on the business specific needs of the business. There are certain people or team that a startup owner needs to fill immediately as soon as he or she commences business, one among those teams that they need to hire is a legal team. Right from the beginning, a legal person will need to comply with the guidelines. Entrepreneurs need to prioritise and consider the legal implications of their business strategies and plans. An Entrepreneur needs to have a legal advisor to protect and mitigate the risks involved in the normal course of business. These legal persons or advisors navigate the complexities of running the business.
Importance of having a Startup Lawyer:
Many startups face difficulties right from the formation, getting necessary licenses, permits to set up the organization, collecting taxes and so on. As an entrepreneur, there is a need to have a reliable or trustworthy legal counsel to protect the organization from liabilities, to mitigate the risk and also to ensure that other party abide by the obligations as per the contract or agreement. If a startup hires a legal person or counsel he or she will take care of things such that the founder's focus on their mission and vision. They ensure that the entity is in accordance with the relevant laws of the land also also ensure that their Trademark or Patent are protected.
Need for Legal Advisor in an Organization:
There are various situations where a legal team or legal advisor is needed.
Right from the formation of the organization or the company, let's say for setting up of partnership firm, partners enter into certain agreements in which they agree to certain terms and conditions such as capital contributions, profit sharing, percentage of ownership, withdrawal, dissolution of the organization and so on. There is a need for the help of lawyers as they can negotiate the provisions of the Agreement and also to have a check on the agreements that they have entered into.
After the organization is formed, there will be a need to have a employee handbook. In order to draft an employee handbook both the human resource as well as the Legal person assistance is needed, the legal person has knowledge about the labor laws and the current trend. These Policies should be drafted properly such that law suits could be avoided. For instance, Factories Act states about the total working hours, Maternity Benefit Act states about the benefits available for the pregnant women as well as the benefits available for the father i.e. Paternity Leave.
Even though a company is a startup, there will be a need to protect the organization's name i.e. brand name. The organization's name has to be trademarked, such that it will stop competitors from poaching the organization's customers and clients.
There will be a need to deal with the business compliance, in order to abide by the law.
