Starting a business

The contractual agreements at the beginning of a business are critical, especially when the business does well. If the business fails, the agreements will not matter. The agreements that every business requires will govern not only the relationship between founders, but also the third parties that the business will interact with, which will not only be the customers, but also landlords, banks or lenders, suppliers, marketing, website design, etc. Some of the goals of putting in the cost and effort in getting proper agreements when starting a business are:

• Clarify and establish parties’ roles in the business
• Identify and confirm rights and obligations
• Create legally recognised and enforceable obligations
• Ensure clarity and consistency in business dealings
• Reduce opportunistic business practices

The types of documents and agreements that businesses typically will require at the beginning are:

• Basic term sheets and memorandums of understanding
• Employment and independent contractor contracts
• Guarantee / Indemnity agreements
• Incorporation of companies and registration of businesses
• General terms of sales (e.g. for delivery orders)
• Non-disclosure and confidentiality agreements
• Shareholder agreements
• Loan agreements
• Intellectual property
• Employment agreements
• Tenancy agreement
• E-commerce (e.g. end user license agreements, privacy policy, registration of trade marks, website/app terms of use)

Not all businesses will require the full suite of agreements and documents. We understand that businesses have a limited legal budget when starting out. Speak with our experienced corporate lawyers to work out the order of priority in which the business can invest in these agreements.