Why every business entity needs to legally safeguard their business?

Every business entity that wants to survive in long run must comply with law of land. This is a major mistake by most of Indian entities, which keep their legal compliance as second priority till the time something hits on their head. As a business entity, it need to be focused and has to be steer clear from any legal controversy, they have to full proof and water tight all legal corners. Either engaging a third party as a vendor or hiring employees, everything should be well documented and legal drafted. Hence the first priority should be to make a business entity is to start and operate it as legally correct.

What are some must have legal drafting for Indian Business entities?

Mandatory legal documents vary from company to company as per nature of their business and circumstances under which they operate, however here are some common mandatory documents which need to be ready with a start up immediately they start their operation or start working from the day of incorporation of business

• Memorandum of Understanding (MOU) :- This is most simple and humble legal documents used widely to mutually agree on pre-agreement points. It serves as guiding documents when we draft any agreements or contracts. Every business when meeting should always have a copy of MOU draft, which should be signed by both parties at the end of meeting.
• Director Appointments letter: – This is crucial for to be drafted at the time of on-boarding of a director, it includes crucial terms and conditions such as terms of appointment, remuneration, scope of work, key responsibilities, Incentive and its way of calculation, termination or resignation, Notice period, Cooling period etc. Even if a founder works as a director such documents must be in place to avoid any future litigation.
• Employment agreements: – When hiring a new employee there should be a proper offer letter and appointment letter to be given at the time of on boarding. These documents should include all terms and condition including circumstances where Employee can be terminated. Being a business enterprise you definitely don’t want to entangle in a legal scuffle with any of disgruntled employees. Hence better to keep everything in writing, duly drafted and signed.
• Vendor/Contractors Agreement: – These are indeed important for a start up to keep all business relations in writing, these Vendor/Contractors agreement will include, term of supply of services or Goods, payment terms, deduction on default in services, service level to be accepted.
• Service Level Agreements:– These agreement are important to be executed with your customers and vendors as well to have a common understanding of level of service to be expected, time frame, and penalties if SLA not met. SLA agreements as it is known will provide a documents supporting your claim at the time of any legal dispute.
• Rent or Lease agreements:– These agreement need to be drafted even in case the Business entity is using any of the founders place for office purpose. It will help to be clear of any sudden expulsion from office, which can potentially disrupt the work.
• Founders Agreement:– If business enterprise is not a private limited company then this document should be executed by all founders to lay down all terms and condition on which all founders are working with it their shareholding or future share allotment. This will provide necessary clarity and security for all founders who are associated initially with a business. These documents will also help to settle dispute, which may arise in future.
• Share Transfer deed: – This should be executed at the time of transfer or shares among founder members, Directors, Employees or any Investor. These deeds will contain all necessary terms and condition for transfer of shares, Price and conditions under which it will be null and void.
• Other Documents:– There are various other documents which can be drafted as per nature and requirement of firms such as term sheet for investors, Anti Dilution agreements, Non disclosure agreements,  etc., which can be advised by our experts after understanding requirement of your start up.

What is Duly Draft?

Duly Drafted: – It is entirely Tailor-made drafting done from scratch as per specific requirement of clients. There are obvious cases of “one doesn’t fit all”, hence there is need to be specific provisions that need to be inserted to keep the documents relevant. As professional require more time to draft the documents and take the approval, Duly Draft is costly as compared to Ready Draft. The whole process may take 2-3 working days and Professional will submit first draft within 24 hours and send for approval. Maximum 2 times changes will undertaken any further change will be chargeable on Rs/- 350 per hour.

What is Ready Draft?

Ready Draft: – Where we use a pre-drafted format to make legal documents for example rent agreement or contractors agreement. We have very standard formats for all these documents and once details related to your business is provided our in house software quickly search the related business category and create rather tailor-made documents as per industry. The detailed and a well-drafted standard documents are ready within 15 -20 minutes or less. As the process is quite automated we charge a fraction of fees as charged for Duly Drafted due to saving in time of our professionals. However if you want particulars terms and condition to be included in the documents it is better to go for Duly Drafted, where Document is drafted from scratch as per you requirements of business.

Which one you should choose?

This is completely depends on what type of industry or sector, in which your business is operating. You can seek advise of our experts and they will guide to choose best course of action. You can just send an email to cs@aktassociates.com explaining nature of your business and some-one from our legal team will get in touch with your to advise on it.

Who will draft Ready Draft documents?

Ready Drafts are program based automated drafting where we need to just supply the required information and program will make the documents ready based on industry and nature of business. There is less human intervention hence there is less chances for errors. These are best and now used world wide to draft standard legal documents. Due to automation, accuracy and inbuilt cross check errors are avoided and a well-drafted legal documents are ready at a fraction of cost. These are best for those businesses that want to have standard terms & conditions and at the same time want a cost effective solutions.

Who will Draft my Duly drafted documents?

Duly drafted are tailor-made legal documents drafting solutions. This is intended for such enterprises, which need specified terms and conditions. We engage our legal team to understand the requirement and put them under legal language to protect the enterprises from any future misadventure by any stakeholders. If you feel you need such services get in touch with us by sending email to cs@aktassociates.com and our team will get in touch with you.

How much cost effective these packages are?

Out services will be at least 70% cost effective then engaging a legal firm. We achieve this cost saving by using automated drafting software and spreading overheads on large number of clients. This help us to stay competitive at the same time our clients get standardized legal drafting services at very cost effective price.