Essential Agreements for Your Startup

There were many common mistakes startup owners make during early stages. 
Here are the top 10 legal agreements startups must have to avoid  legal troubles:

Trademark 

The Licensee who is running a small business has requested the Licensor to grant him a license to manufacture the said goods with the trade mark embossed on the product.

Articles of Association/Incorporation 

Articles of association is an agreement which defines the company's purpose and specifies the regulations for a company's operations. The document lays out how the work process to be accomplished within the organization, it may include the process for appointing directors and the handling of financial records.

A non-disclosure agreement (NDA)  

Non-Disclosure Agreement is the important document that you need to draft when dealing with any client/investor. These startup agreements ensure that the privacy of the company is not disclosed, as well as that of the other party, remains protected. 
An NDA should specify the following: 

• Offer letters
• confidential information 
• How confidential information should be handled 
• owner of the information 
• The time range
• The duration of maitaining confidentiality

Employee contracts and offer letters

Building a Team for the Business startup is crucial to set up your business for success. 
They should clearly state the following terms: 

• Employment terms and condition
• responsibilities of an employee, working hours and termination  
• Reporting structure 
• IP ownership of work 
• Expectations on employee 
• Commitments during employment

Shareholder’s Agreement

 It is one of the most important startup documents that helps to determine the rights, responsibiliteis and liabilities of the shareholders. 
These contracts are very crucial as they define the relationship between the shareholders of the company.

Bylaws

Every startup needs a specific set of working rules or principles that govern that space. Bylaws serve as those sets of rules. 
Intellectual Property assignment agreements 
There are two types of Intellectual Property contracts to take into consideration:  
Technological Assignment Agreements:   These are made between a shareholder and a startup company. Invention Agreements are relevant when there is an innovative product or service created by a company’s employees. 
An Intellectual Property assignment agreement must be one of the important legal startup agreements to determine whether your startup can attract investments. 

Founder’s agreement  

A founders agreement is an agreement drafted when company is formed with two or more founders, and it specifies the details such as the share of ownership and guaranteed obligations of the different founders.

Business Plan 

A frequent blunder committed by new startup companies is the failure to check a well-drafted business plan in place. Things, like the incorporation of a private limited or LLP and not setting sole proprietorship, can cost entrepreneurs huge losses in terms of income tax returns, personal savings, and property. 

Web Site Terms of Use Agreement 

Most growing businesses have established (or should establish) a Web site to market their startup and their products. Essential to these Web sites is a terms of use agreement, which is intended to be an agreement between the Web site owner and the users of the site and any buyers of goods or services from the site.

A well-drafted contract includes limitations on how the site can be used, disclaimers, liability limitations, disclosure on the site’s privacy policy in dealing with customer information, copyright protection warnings, the jurisdiction where any disputes must be brought (ideally, the home town of the site owner), and much more.

Conclusion

These startup documents are no sure shot instructions to be a success in your business. Nevertheless, evidence of your dedication to taking your startup to new heights with proper preparation. It is really important to put some effort for getting the Startup Agreements out of the way for a brighter future as a company.