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FORMAL AGREEMENTS: A MUST FOR STARTUPS

At the time of setting up your startup entity, make sure you attend to creating formal Agreements in relation to your business needs & transactions. Some of them are-

  1.    Joint venture Agreement

It is advisable for you to enter into joint venture Agreement in cases when your business is founded with friends or family. It basically defines roles & responsibilities, capital contribution, profit sharing, etc.

If you decide to operate your business through partnership, then you should get a Partnership Deed registered.

It is pertinent to note that there is a difference between Joint Venture Agreement and a Partnership Deed. In cases of Joint Venture Agreement, the business is formed by 2 or more persons for a specific purpose and once the purpose is accomplished, the joint venture ceases to exist. Whereas, a Partnership Deed is one in which the partners, 2 or more, agree to carry on business & share profits and loss of business.

  1. Agreement with Employees

There is a routine practice among the business entities to issue letter of employment or enter into Agreement with the employees for engaging their services. The appointment letter or Agreement must entail terms & conditions of employment. Every aspect in relation to services engaged must be mentioned clearly in the document.

  1. Non-disclosure/ Confidentiality Agreement

This Agreement is necessary when you are disclosing any confidential information, may it be trade secrets, business plan, financial strategy, etc. places restrictions on the recipient of such information, not to disclose anything to a third party.

  1. Consultant Agreement

The Consultant Agreement must be entered into when you are engaging services of a person or company for a particular assignment. The Consultant is not to be regarded as an employee of your firm and hence this Agreement safeguards your business transaction while engaging consultancy.

 

LawMate.in is a one stop solution to your business legal needs. For assistance, contact on 8007452709 or email- lawmate.in@gmail.com.

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