Legal Issues and start-ups!

By Aparna RoyA great idea has dwelt in your mind and you are all set to launch your own company. With great excitement and fervour, you move ahead to embrace entrepreneurship. But wait, something is coming between you and your dream. Oh! It is the ‘Law’.

Yes it the legal formalities that can give entrepreneurs a tough time. They already have so much to handle, right from settling financial issues to getting the right partnership and employee. Legal issues have further increased the frowns on their faces. Many start-ups experience serious difficulties related to documents, company name, authenticity and others.

Now, there is nothing in this world that cannot be handled. Every problem has a solution, provided we take some precaution beforehand.

Talking about precautions, every person who wishes to step into the start-up ecosystem should grasp intense knowledge about the legal rules and regulations that are involved in before and after the registration process of a company. Since Law is subjected to changes and alterations, one must keep on updating oneself to avoid any undesirable situations.

One good thing is that these legal formalities are not complex; in fact, these are basic and simple. If you keep things simple and straightforward from your side, such laws can never cause a twinge.

Ergo, here are some legal issue discussed to help entrepreneurs buckle down legal requirements.

Be sure with the structure of the company:

It is important that you as the founder know what kind of business you are exactly venturing into. Not defining the structure can lead you into legal liabilities and taxes. Many companies experience a short life due to this very reason. Therefore choosing the right structure for your company will increase its lifeline.

A legal understanding between founders and co-founders:
Most companies are founded by two or more people.
In such cases, it is safe to keep legal agreements to avoid any kind of clashes. If things turn wrong, it can even result in losing one’s authority over the company. So if you are starting a business with your friends or partners, make sure you keep everything documented.

“This is a matter of law now. Any business that markets its wares must have a privacy policy that explains what customer information it does and does not share. For example, if you share your customer list and emails with another company, your customers have the legal right to know. Your privacy policy must be publicly disseminated.” – Jerry J. Trevino, CEO of Mr Personal Injury Lawyer.

Employment Rules and Regulation:

To run your business you need to hire people. Just hiring them will not sort everything. As the company’s founder, you have to pay attention to the necessary employment documentation. It plays a very important role in every organization. It will save your company from falling prey to unnecessary defamation which can affect your name and business in the market.


Registering your company does not give you the license to pull a business. Apart from registration, you need to get a separate licence to run the business. It is an important requirement to avoid legal consequences.


Your business structure will decide the kind of tax you have to pay. Tax is one of the most common legal issues that companies usually get caught up into. That is why it is important that you know the different kind of taxes a business is exposed to along with the general income tax.

Apart from these, there are many other legal issues that start-ups can be put through. So in order to avoid unpleasant experiences with the legal authorities, keep your company well furnished with legal indentures.