For digital start-ups turning an idea into a commercially viable business can be a risky proposition. If you want to protect your investment in your business, then having the right legal documentation in place from the outset is essential. To help you hit the ground running, we have outlined below five legal documents that every digital start-up should have in place.
One of the most important legal documents for a Company with two or more shareholders is a shareholders’ agreement. This can ensure the smooth running of your business. It can set out the rules by which the Company operates, define the relationship between shareholders, establish their respective rights and obligations and provide a framework for resolving any disputes.
Directors’ service agreement
Generally, you will need a directors’ service agreement for each director. Directors Service Agreements are employment contracts that contain additional clauses relevant to a Company Director. In some circumstances, a Company Director may not be an ’employee’ and the services they provide should be set out in a service agreement.
Terms of business
It is fundamental to define the terms on which you trade with your clients when supplying digital services. This essential legal document includes information on contract formation as well as service specifications. It deals with the payment process, intellectual property rights, limitation of liability, consequences of termination and can include a framework for resolving any disputes.
You should have clear employment contracts in place when recruiting new employees. It may be tempting to do this on an informal basis, but it is important to draw up clear employment contracts. These are key to ensure employees understand what is expected of them. A well crafted employment contract will protect your business and place post termination restrictions on employees ensuring your commercially sensitive date is secure and that former employees are unable to solicit your clients or staff.
We know that launching a digital start-up can be a challenging undertaking, but we are here to help. Please contact us on 0113 418 2055 or at email@example.com to learn more about growing your business while protecting your business from potential risks and liabilities.