Starting a business of your own can be a challenging proposition. A lot of planning and execution has to be done to get your business up and running. The first step in this direction is that you should have an idea and capital to invest. Generally it is seen that prospective entrepreneurs, considering the various challenges associated with starting a new business, do not prefer to go solo. They opt for partnerships or get other investors, who may not necessarily be involved in regular business activities. Setting up a new business is a risky proposition and nobody wants to bet on it alone. The fear of failure is always there.
Though you always plan for the best results, that your business partnership will succeed, you must also be prepared for the worst. It is here that the need for a lawyer becomes apparent. A corporate law firm in India help budding entrepreneurs set up their businesses, so that any possible future dispute can be avoided.
A lawyer helps in charting out the roles, responsibilities and rights of each partner and the investors. How the equity should be split, what would be the basis of profit sharing, who all will be the decision making authority, etc., are all taken care of by a corporate lawyer. That is to say that all concerns are addressed at the outset, before it blows into a conflict. They help you set legally binding conditions for the business, so that there is minimal chance of any conflict in the future.
The first and most important role of a lawyer is in incorporation of a company, whether it is a partnership or a limited concern, or any other type of business set up. Incorporating a company legally separates your personal liability from that of the company. Once a company is incorporated, it gets a separate legal identity different from that of the owners or promoters. Incorporation process requires a lot of paper work and documentation that only a lawyer can handle. Memorandum and articles of association, shareholding patterns, details of board of directors, contracts and agreements, and various other documents have to be submitted at the time filing application for registration.
Besides incorporation, there are hosts of other licenses and permits that need to be obtained to conduct the business. There are different state and central government rules that have to be followed; rules vary depending on the sector or industry the business operates in. All these legally sensitive issues have to be handled by a lawyer, so that no rules or regulations are ignored that may spell trouble in the future.
As an entrepreneur, your primary focus is on the business aspect of your company. You are preoccupied with operations of the company and how to make it profitable. In such situations, when many things run through your mind simultaneously, there is every likely hood of you missing out on minor details which can have larger legal implications in the future. A lawyer understands your situation and, therefore, keeps on asking questions about business processes and other details about the company’s operations. For instance, issues like employee contract, partnership agreements, etc. are taken care of by the lawyers who draft them accurately in an unambiguous language.
When you seek new investors for your company you would want to get the best deal possible with terms and conditions that suit you the best. There are different ways of funding and each method has its own set of applicable rules. A company secretarial services provider in India helps start-ups in the funding by ensuring that the process is as smooth as possible without any glitch, and that it passes the scrutiny of the law. For instance, issues relating to the structuring of the investment, vesting powers, valuation and pricing, voting rights, etc., have to be taken care of. Without the help of an attorney all these would not be possible.
Depending on the nature of your business and the industry it operates in, your company could be subject to a variety of regulatory requirements. You must have a clear understanding of the laws and regulations that apply to the products and services you offer. A lawyer can guide you through every step of the regulatory compliance. Non-compliance, even if it is inadvertently done, can have serious legal implications. It is one of the many reasons that entrepreneurs need a lawyer for the smooth functioning of their business.
As much as you would like to avoid, it is quite natural that some legal issues might crop up during the future course of your business operations. It could be anything, from internal conflict to customer or vendor related issues. Whatever the trouble might be, your lawyer is the first point of reference. He/she is the one who would take you through the difficult times.
To sum up, there are many reasons why entrepreneurs should always seek advice from a corporate law firm in India for the smooth functioning of their business.