In recent times, we have been seeing several high and low profile startups ending up in courts disputing and tarnishing reputation. The recent case being that of TVF pitchers, fighting for equity stake in the company. Here are 5 quick tips startups can use to avoid costly litigations.
1. Have a Legal Agreement
A startup running without a legally enforceable agreement is a recipe for disaster. Clear and unambiguous agreement between the partners, employees, vendors reduce the chances of litigation.
2. Abidance with the Compliance Laws
Do you know government is the biggest litigator in Indian courts? Have a competent team of CS, CA lawyers to avoid litigation by government in CLB, Income tax tribunals, ED, EOW etc.
3. Robust Customer Redressal System
Don’t treat your customer badly, they can approach consumer forum for redressal if you fail to redress their legitimate claims.
4. Vendor Payments
Make sure you pay your vendors on time or else they may sue you for recovery with a civil suit or your startup can end up in arbitration.
5. IP Policy
Make sure all your intellectual property like copyright, TM, designs, patents is registered and are in the name of company, not in the name of employee(s).
Follow these tips to reduce expensive litigations, save time and money.
For more details or to request a consultation, visit Lexspeak Legal or call me at 9891549997 – Adv. Nitish Banka, Founder, Lexspeak.
[Edited for clarity]
(Please post your press releases directly to appropriate exchange forum and submit startup events using the form.)
(If you are an amazing startup founder or enabler of startup eco-system in India or elsewhere and would like to be interviewed or featured on Startups.in then please read this and this before you reach out)
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