Digital Start-Ups – Essential Legal Documents
The needs of each business can differ greatly and the legal documents that you must have in place will depend on the structure and type of business you are starting. But for digital start-ups there are five legal documents that are essential.
1. Directors service agreement
A director’s service agreement sets out various rights and obligations that occur as a result of appointing a director. It creates a certainty for the company and its directors and means that all parties will be somewhat protected with regards to any disputes that may arise regarding the business in the future. If there is not a director’s service agreement difficulties in relationships can occur.
2. Shareholders’ agreement
If your company has more than two shareholders then a shareholders agreement is one of the most important documents to have. It allows a company to set out rules which govern how the directors interact with their shareholders and how much input and influence the shareholder may have over the business.
3. Terms of business
The purpose of terms of business is to define the terms and conditions under which you conduct business and trade. It will stipulate the terms and conditions by which you operate and helps to protect your business from any disputes that may arise.
5. Employment contract
All employees must have an employment contract with their employer. This contract sets out terms governing things like: conditions of employment, responsibilities, duties, and employee rights.
If you are thinking about starting up a digital business, contact Kaiser Solicitors for help setting out these legal documents.