Why Should Startups Hire Lawyers?
By Advocate Atit Jain / 2017-03-16
Create a kick-ass product, forge a service delivery system, do awesome marketing, conquer social media, raise investment, become a sales superhero – and your company will become hot property in the market. And then-BAM!- you’ll deal with a host of uncool things, this being India; some of them will make or break your business.

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You have a great business idea, you got it validated from friends, family, advisors and now you are going to take the plunge into starting up. Maybe you have already started the journey and battling market forces on multiple fronts, pushing your products or services. If you’re looking at high growth, there are a few typical phases during which you’ll have to interact with the legal system in India.

Lawyer's As an Advisers

Lawyers can add value in the obvious ways, helping to avoid early mistakes like issuing stock too late in the game, when the company has grown in value and the employees can no longer take advantage of favourable tax treatment. But more importantly, a lawyer on the early team can contribute to a thriving company culture by asking the right questions at the right times, providing perspective on crucial transactions, and getting smart fast on issues where the rest of the team lacks expertise. Hiring a startup lawyer in India , on the early team contributes to a data-driven, analytic culture of thoughtful decision making. Further, lawyers are trained as advisers and service providers. They can ask questions, explore options, and execute on answers, but they don’t expect to make the final call. This comfort with playing a supporting role helps avoid the egocentrism that can cripple any organisation, particularly a nascent one.

The surprising reality

Two in 10 starts up fails due to a legal reason, many of which could have been avoided if basic legal matters were taken care of properly. This happens because these business owners either tried to use a contract template off the internet or never sought legal counsel from a good startup lawyer in India . It is understandable if they were concerned about legal fees. But dealing with issues with legal documents and having to appear in court to settle disputes will cost them so much more. This is a classic case of being penny wise but pound foolish.

Create a kick-ass product, forge a service delivery system, do awesome marketing, conquer social media, raise investment, become a sales superhero – and your company will become hot property in the market. And then-BAM!- you’ll deal with a host of uncool things, this being India; some of them will make or break your business.

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


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