10 Legal Tips For Startup In India - PowerPoint PPT Presentation

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10 Legal Tips For Startup In India

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In this presentation, we will talk about the top ten legal tips for startup business in India. This one helps the founders who want to start their startup and what are the legal terms that they should aware of? Ahlawat & Associates is one of the top law firms in India. So, if you want to know more about us then check it out. Visit here: – PowerPoint PPT presentation

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Title: 10 Legal Tips For Startup In India


1
5 Questions to Ask When Hiring a Real Estate
Attorney
2
  1. Choose the right legal structure for your startup
  • The decision should be taken based on individual
    circumstances and a host of factors, such as
    Business trajectory, Tax consideration and
    regulatory, Number of stakeholders and much more.

3
2. Registrations and Business License
  • Post incorporation of a business entity in India,
    some necessary registrations are required and
    mandated by law.
  • Business licenses are permits issued by a
    government authority that allows startups to
    start/conduct/continue to operate a particular
    business within its territorial jurisdiction
    lawfully.

4
3. Intellectual Property Protection
  • It is essential to obtain trademark registration
    for the business name/trade name under the
    Trademarks act. Registration of a company or
    business in India does not by itself give
    protection against others who might commence
    using identical or similar marks.

5
4. Founder Equity - Split and Vesting
  • Founder equity should be split amongst founders
    based on the nature of the role played by each
    founder along with their time, effort, and
    capital contribution to the startup.
  • Founder shares should be always subject to a
    vesting schedule - typically over a period of
    three to four years.

6
5. Founder Agreements
  • The founders agreement is most valuable tool to
    establish the relationship between the founders
    of a startup. The agreement should represent a
    clear understanding of the founders on all key
    issues related to the startup.
  • Founder agreements should clearly mention the
    roles and responsibilities of the founders.

7
6. Employment Contracts
  • Stopping employees from setting up competing
    entities (Non competing clause)
  • Poaching other employees/clients/customer
    (Non-solicitation clause)
  • Preventing employees from claiming any
    intellectual property right on the work
    done/developed during the course of employment.

8
7. Employee Stock Option Pool (ESOP)
  • ESOPs are incentives given to employees/director
    of a company to attract talent and retain
    employees by rewarding them. ESOPs create a sense
    of ownership among employees.
  • In India, we typically see a pool of 10 to 15
    allocation towards an ESOP pool.

9
8. Third Party Agreements
  • Prior to entering into third-party agreement and
    while negotiating the terms, it is advisable to
    execute a non-disclosure agreement.
  • Clauses related to breach, termination and
    dispute resolution should be well negotiated and
    captured in all third party agreement.

10
9. Investing Structuring
  • One of the most challenging and time-consuming
    aspects of operating a startup is to raise
    capital fopr working capital requirement and
    growth.
  • It is imperative for startups to seek proper
    legal advice while negotiating the deal terms for
    investment and the rights for the investors.

11
10. Compliance Management
  • Compliance and its importance are often
    overlooked by many startups.
  • It is extremely critical for the sustainable
    growth of any business that the startup is in
    compliance with legal, secretarial, accounting,
    taxation, employee-related and other associated
    compliance.

12
Contact Us
We are always happy to make valuable new
contacts.
www.ahlawatassociates.com
admin_at_ahlawatasscociates.in
A-33, Lower Ground Floor, Defence Colony, New
Delhi 110024, India.
011-41023400
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