When a company is in its budding stage, it is necessary to follow all the rules and procedures of the law for its efficient growth and development. A right lawyer can take up the company to new heights and ensure its smooth passage through some rough times. It is important to know the role of a lawyer in a start-up organization.
What to look when hiring a lawyer?
A start-up is not highly strong on financials and therefore, must not concentrate on hiring a lawyer of high expertise with enormous legal fees but a good, knowledgeable and responsive lawyer with whom the company is compatible to work. The lawyer must be interested in the work of the company and the company should trust him with all the work while it enjoys working with him. Referrals are a good option.
A lawyer helps in fixing the problems before its too late. He knows a lot many things from which the company benefits.
When does a start-up need lawyers?
· Company Formation – When a company is to be formed, various agreements are to be drafted, MoA and AoA are to be incorporated, corporate structure is to be defined;
· Founders – When a company is formed, regulating the rights and obligations of the founders and their shares would be a piece of cake if a lawyer was looking after such affairs;
· Intellectual Property – It is better to engage a lawyer if intellectual property is the core of the business and the company specifically deals in the same;
· Laws in general – A founder should pay all its taxes and not violate any laws for its boosted growth and for that, a lawyer is necessary;
· Negotiating contracts – Negotiation upon contracts between customers, suppliers, license agreements, etc is necessary for which a lawyer comes into action;
· Investments – Documents relating to investments are pretty hazy to layman and therefore, hiring lawyers would be the best judgment;
· Dispute Resolution – Disputes arising between companies would consequently involve lawyer consultation and to have one beforehand is a better sort of preparation as he knows that in and out of the company.
Important Things to Remember
Ø You have to ponder whether you need a full-time lawyer or an independent lawyer to look after the legal affairs of the company;
Ø A lawyer who doesn’t understand your business would not be adequate to represent you in the professional world;
Ø Surprise costs of lawyers would eat away from your business;
Ø Don’t hire a lawyer when police is standing at your gate: hire him sooner;
Ø Ensure the lawyer is not working with your competitor also;
Ø Meet with your lawyer on a regular basis.
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