We are experts in a lot of legal areas

LEGAL AND COMPLIANCE CHECKLIST

Whether you are a startup, or a growing company, there are various laws that need to be complied with relating to incorporation, intellectual property, company law, and many others. The following checklist shall assist you in efficiently and systematically handling the same. Your responses to the below will help in checking the legal and compliance hygiene of your organization.

1. Do you have more than one founder? In which case have you signed the Co-Founder Agreement? Have you demarcated each founder’s contribution as well as ownership, the responsibilities and initial investment made by each? If you haven’t then we strongly advise you to sign a Co-Founders’ Agreement which is a contract that the Founders of the Company enter into, it prevents any miscommunication from ensuing between the Founders at a later stage and easily assists in case of any conflicts taking place. Have you signed your Co-Founders’ Agreement yet?

Yes No

2. Have you created a logo which represents your company/organization? If yes, then have you sought trademark registration to protect the intellectual property of your company/organization and to prevent others from copying or creating similar logos to the one used by you? Your logo is the symbol by which your target audience recognizes your brand, if you do not protect the same you risk dilution which could be harmful to your reputation as well as sales.

Yes No

3. Has your company begun looking into private investments? If yes then it is time for you to determine the rights of your shareholders. This can be done with the help of a Shareholders Agreement. In order to prevent disputes and litigation it is always advisable to get a Term Sheet followed by the Shareholders Agreement drafted by a legal expert. Do you require assistance for the same?

Yes No

4. Have you begun recruiting employees as your business has begun progressing? In that case it is time to draft and put in place an Employment Agreement with your employees to make sure that they are aware of the work expected from them and its nature, and also clearly include what are their rights and duties. Have you signed appropriate Employment Agreements with your employees?

Yes No

5. It is common for companies to take assistance from advisors for various aspects of the business. Founders are often known to take expert advice for the smooth working of the Company. For efficient functioning of such relationships an Advisor or Consultant Agreement must be in drafted for the sake of confidentiality and to specifically state the rights of each party. It maybe noted that in the absence of a Consultant Agreement, the relationship maybe deemed to be that of an employer-employee which could put unnecessary strain and obligations on you. Do you need help with the same?

Yes No

6. Are you enrolled in any Accelerator or Incubator programs which have helped you gain mentorship, advice and funding? If yes, then do you have an Accelerator agreement in place to safeguard the rights of both parties?

Yes No

7. Do your employees contribute to the development of Intellectual property at the Company? If Yes, then do you have a Confidentiality and Intellectual Property Assignment Agreement with your employees for the transference of IP created by the individual to the Company? If you do not have such an agreement, we strongly advise you to look into the same as it can prevent ownership disputes from taking place and protect your IP from getting copied, or sold by the creator for equity or cash.

Yes No

8. Do you commercially wish to exploit the Intellectual Property that you own by selling or licensing the same? Do you in that case need an Intellectual Property Assignment Agreement or Intellectual Property Licensing Agreement?

Yes No

9. As a goods or service provider you may be engaging with various customers to provide your goods or services in return for a consideration. Entering into a Customer Agreement/Product Purchase Agreement/Service Agreement, helps in safeguarding the interests of both parties. Such an agreement will also help you in case you have payment issues later. It is better to have a properly drafted contract in place of a purchase order or invoice. Have you drafted such an agreement to protect your rights?

Yes No

10. Have you received the help of seed investors for raising funds for your company? Have you issued ordinary shares to such investors? If not, then do you wish to seek seed funding? For doing so a seed investment Agreement is mandatory as it specifies the terms and conditions of the investment. Do you need assistance with drafting such an agreement?

Yes No

11. Are you looking to incorporate a new Company? Then you must be aware that the Articles of Association and Memorandum of Association are extremely important documents, which together form the Company’s constitution. The directors’ responsibilities, business to be undertaken and the shareholder rights are defined clearly in these documents. They are to be submitted at the time of Application for incorporation. Would you require assistance in drafting the same?

Yes No

12. Did you know that Bylaws and Code of Conducts are an important aspect of a Company’s efficient and smooth working? It falls upon the Founders to ensure that strong bylaws and code of conduct have been established as they govern the internal management of the Company. Have your Bylaws/Code of Conduct been drafted?

Yes No

13. A Company’s confidential information as well as intellectual property must be safeguarded at all costs. A Non-Disclosure Agreement assists with protecting the business as well as its employees. It defines who owns the confidential information, the situations in which it can be disclosed and the time period for which the confidentiality of the information must be upheld. It is imperative that you look into the same for your company’s benefit.

Yes No

14. Do you require assistance with drafting Contracts entered into with third parties such as Vendors, Suppliers, Bankers, Principal Customers, before the incorporation of your company? Such Contracts are popularly known as Preliminary Contracts or Pre-Incorporation Contracts and must be ratified after incorporation to ensure the other parties are bound by them.

Yes No

15. Are you afraid of solicitation or in other words losing your employees or customers? There is a safeguard that protects you against the same, i.e. Non-Competition and Non-Solicitation Agreements. These Agreements prevent the employees of your company from soliciting a client or to abandon his/her contract with your company and move to another organization or person providing the same services. Would you require help with drafting the Agreement?

Yes No

16. Are your employees aware of the specific policies and procedures applicable to their workplace? Do you have an HR Policy which encompasses the same? If not, we strongly advise you to get an HR Policy drafted which shall include the benefits given to the employees, the policy for leave, compensation benefits, behavior to be maintained at the workplace, procedures for complaint and resolution of internal disputes, travel policy etc. Considering the current scenario work from home procedures and rules must also be included to avoid confusion.

Yes No

17. Did you know that the Prevention of Sexual Harassment (PoSH) at Workplace Act of India makes it compulsory for every workplace to define the policies they have in place to safeguard the women working in the organization against sexual harassment? The workplace must be a safe space for the women employees as much as it is for the male employees, therefore having an Anti-Sexual Harassment Policy in place saves the employer from unnecessary hassles as well as provides a Complaint and Redressal mechanism for the aggrieved woman. Do you require help with drafting such a Anti-Sexual Harassment Policy as well as setting up an Internal Committee under the Act? We also provide assistance with the Regular Sensitization Programs that must be carried out to educate the Employees on the Sexual Harassment legislation and Policy.

Yes No

18. Does your Company deal with the distribution of software to its customers? Are you aware of the importance of a Software License Agreement in that case? A Software License Agreement is a contract that you have with your customers who are using the software owned by you. It clearly defines the rights they have to your software and mentions how they can use it and to what extent. It also explains how the user/customer shall be held liable in case there is a breach. Through a Software License Agreement the customer is made aware that his right to use your software is non-exclusive and non-transferable. We advise you to seek expert legal help for drafting of the same.

Yes No

19. Are you frequently leasing your equipment to others for use in return for periodic payments or conversely taking equipment on lease? Leasing helps to manage cash flows better while not keeping the financial obligation of owning assets on the books. We advise you to enter into an Equipment Lease Agreement to avoid complications in the future as it shall specify the payment methods, time period for which the equipment is leased and the liability incase of a breach.

Yes No

20. Do you wish to incorporate a consent process in the form of a digital prompt for your customers who use your software or enter your webpage? A Click Wrap Agreement is the solution for you. It is a convenient way by which you as a Company can enter into an Agreement with your users. A Click Wrap Agreement incorporates the privacy policies, terms of use, copyright policy as well as all other similar policies and procedures in the form of a prompt. The User shall agree to the prompt by accepting the terms and conditions option if he/she wishes to use the webpage or software.

Yes No

21. If you are looking into hiring contractor services to perform functions such as architecture, construction, design, security, transportation, managing public relations, an Agreement highlighting the relationship to avoid misunderstandings and cover all reasonable topics such as payments, confidential information and scope of work shall be wise. Such an Agreement is called an Independent contractor or Service Agreement. Have you looked into the same?

Yes No

22. Does your company create inventions which are non-obvious and novel? Are you aware that if you do not seek patent protection for the same they shall be copied and commercially exploited by others, leaving you with no safeguard to protect your own invention? It is imperative to seek patent registration by filing an application with the authority and we can help you with the same.

Yes No

23. Are you aware that it is a criminal offense to operate without a GST registration, and you could be charged with heavy penalties for the offense? We could assist you with the entire procedure of obtaining a GST registration.

Yes No

24. If you have been running a shop or office where any business activity has been carried out and you have employed casual workers, full time employees etc. then it is mandatory for you to get a Shop Establishment Certificate or a Shop License. Such a license/certificate shall ensure your workers rights are not hampered and it also regulates the working conditions. Within 30 days of beginning your work, you are eligible to get the license. Have you attained your Shop License yet?

Yes No

25. Are you hassled by delayed payments? Confused about how to proceed on the MSME Samadhaan portal? Worry not because we can help you through each step starting from the legal recovery notice that is to be sent across to the other party before proceeding onto filing your complaint on the portal.

Yes No

26. Has your Company or Limited Liability Partnership been registered? Are you aware of the benefits of each of the types of legal entities, like private company, limited liability partnership, partnership, etc. Registration grants the entity its own legal identity and protects the promoters from liabilities which may arise in the future. It also helps the business to be easily transferred should the need arise. We could advise and assist you with the same if required.

Yes No

27. In your line of business do you engage is export and import of your goods? If not, then in the future do you plan to expand your business overseas by exporting your goods to another Country or importing foreign goods into India? If the answer to the question is Yes, you must apply for an Import Export Code which is a key business identification number allowing you to engage in such activities. You shall not be able to export or import without a valid IEC Registration. Do you require our assistance with the same?

Yes No

28. Is your Company engaged in food business or do you plan to venture into the same at some point? If you plan to do so, then having an FSSAI license is mandatory and the same can be collected from the Food Safety and Standard Authority of India. The license shall be assurance for your customers that you are following the guidelines mentioned under the food safety standards of India. The process is detailed and having expert legal assistance for the same shall make it hassle free for you.

Yes No

29. Do you engage in a trade or business which deals in products and services affecting the health of the consumers? If yes, then a Health Trade License must be obtained by you before the commencement of your business. The purpose of the license is to ensure that the health of the general public has been kept in mind and the hygiene and safety norms are being followed. Do you have your Health Trade License?

Yes No

30. Do you require funds for the growth of your business? Are you confused who you should approach for assistance regarding the same? Depending on the stage at which your Company is we can aid by referring you to Angel Investors, Venture Capitalists, Incubation centers, Accelerator Programs. We also assist with mentorship as an upcoming Company often requires guidance on how to proceed to the next stages of its growth.

Yes No

31. Do you have a website or e-commerce portal for the display/sale of your products and services? If you do, then are you aware of the requirement of a well drafted Terms of Use? The following document is digitally uploaded onto your webpage and its purpose is to make your customers aware of your liability in case they suffer any loss, damage, or expenses while using your website. Such terms and conditions can protect your business from the claims made by users of the website. Do you have a detailed Terms of Use?

Yes No

32. Do you collect Data from the users visiting your website or e-commerce portal? Do you in any way come into contact with such data retrieved from your users? You must in such cases have a Privacy Policy in place to protect your interests from litigation or fines that may arise if the Data is not effectively managed due to a lack of Policy. Your Privacy Policy shall detail your company’s views and procedures on the information that is collected, on the way it is stored, for the purpose of its use and the way in which you are protecting the same. Do you have a strong Privacy Policy on your website?

Yes No

33. Are you starting your business as a partnership? Do you wish to share the responsibilities and split costs? To prevent legal disputes from arising in the future it would be advisable to get a detailed Partnership Agreement drafted to clearly specify each partner’s contribution in terms of money, equipment or land, the duration for which the partnership could continue, the process of addition of new partners if needed and various similar points. Do you have a Partnership Agreement?

Yes No

34. As an employer do you invest in training your employees in order to help your team grow? Do you plan to start training employees or new recruits in the near future? If yes, then a Training Agreement is mandatory to set the terms and conditions and payment methods. If an employee immediately leaves the company after training the contract shall protect your company from having to bear losses as the employee shall have to compensate the Company for his untimely departure. A well drafted agreement shall protect the Company and its investment even if the employee does not continue working at the Company after his training. Do you require a Training Agreement?

Yes No

35. As a business entity you must frequently use the help of Vendors to purchase products or services required for the operation of your business. It could be repair and maintenance, raw materials for your goods etc. Entering into a Vender Contract assures that both the parties i.e You and the vendor are well aware of the conditions of the relationship and each other’s obligations under the Contract. This reduces the likelihood of future disputes. There are various types of Vendor Contracts and we can assist you with the same.

Yes No

36. Do you require the drafting of an agreement for sale but are unsure how to go about it? We can assist in drafting the same with all the imperative clauses to avoid you getting into further legal hassles.

Yes No

37. Prior to filing a complaint or initiating civil/criminal proceedings, it is always advised to first sent a legal notice to the other party. We can assist in drafting Legal Notices for all kinds of disputes such as delayed payment, defamation, Non-performance of a contract, Cancellation of a Sale Agreement, Breach of Trust etc.

Yes No

38. If a Company is defamed it could negatively impact its reputation and standing. The law gives the Company the same right it does to an Individual in case of defamation. Have you received defamatory accusations about your business? Has it impacted your sales? We can assist you in dealing with the same.

Yes No

39. Have you been the victim of the other party not performing their end of the bargain? This amounts to what is known as Non-Performance of the Contract. It occurs when either of the parties in a contract fails to perform its obligations. This could lead to immense loss and damage to the innocent party and gives it the right to terminate the contract or demand damages. Would you require our help remedying such a situation?

Yes No

40. Do you receive notices from statutory and legal bodies? You maybe legally required to respond to these notices to avoid huge penalties and even cancellation of your business and commercial licenses. We can assist you with responding to these notices.

Yes No

41. Do you require the drafting of a Leave and License Agreement for the purpose of leasing another party’s immovable property? The Leave and License Agreement shall give you permission to hold the property that is being leased to you by the Licensor. Do you require such an Agreement drafted for your ease of use?

Yes No

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LEGAL AND COMPLIANCE CHECKLIST

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