Every year more than 300 million startups are registered in the world. Most of the new businesses are in the United States, but European and Asian markets are also not far behind. The term startup means a young company or commercial project created with the aim of implementing a new idea, technology, or invention. Such companies are usually at the development stage of promising innovations. But not every new project can be called a startup. Unlike an ordinary business project, a startup involves uniqueness and innovation.
Many startups are looking to attract potential investors and get funding. Therefore, a brilliant idea alone is not enough. Young entrepreneurs need to incorporate a business entity and prepare development plans and a lot of documentation. It is also important to protect your project or invention from competitors and scammers. We can say that high-quality legal support is one of the cornerstones of startup success.
Stages of startup formation and the role of a lawyer
- The birth of an idea. If several partners are involved in the creation of a startup, it is essential to determine the authorship in order to avoid claims and disputes. This determination is a reliable way to fix the right of authorship, which, firstly, will protect the founders of a business idea from intellectual theft, and secondly, will provide an opportunity for further development through the sale of a patented idea through a franchise.
- The design of the idea. A lawyer will help draw up an agreement of intent, distribute the shares of each participant, and choose the legal form and taxation system.
- The attraction of investments. 90% of startups receive funding from either the state, private individuals, or commercial foundations.
- Registration of relations with investors. Lawyers will help to prescribe in detail all the nuances of the interaction.
- Sale of a startup. A franchise in the modern business world is a very common way to develop a startup. A commercial concession agreement is only one of the options and not a complete sale of a startup, but only a part of business techniques. The exclusive right to the result of intellectual activity or to a means of individualization passes from the right holder to the acquirer at the time of the conclusion of the contract on the alienation of the exclusive right.
- Protection of intellectual property. Disputes related to the transfer of the right to exclusive rights are possible when one of the parties behaves in bad faith: either continues to use the transferred right or does not pay the remuneration stipulated by the agreement. That is why now more and more ideas need legal protection, and more and more enterprising citizens are turning to a lawyer for legal support.
Legal services for start-ups
Fintechharbor lawyers are ready to help in any business process and reduce time and financial costs and avoid risks. We are competent in the following areas:
- incorporation of a legal entity (including the preparation of all constituent documents, filing applications with state bodies of different jurisdictions);
- selection of the optimal tax regime and paperwork;
- opening corporate bank accounts and merchant accounts in the country of registration and abroad;
- drafting contracts with staff, contractors, and investors;
- audit of activities for compliance with current legislation;
- assistance in the reorganization of the company (establishment of subsidiaries, mergers and acquisitions, sale of corporate rights);
- legal support and advice on various issues;
- registration of trademarks, obtaining patents and licenses, obtaining quality certificates for inventions and similar documents.
Proper paperwork is a must for every new business, especially for start-ups that embody new ideas. In order to become commercially successful and subsequently benefit from your invention, it must be properly “packaged” with necessary licenses, and legal and financial frameworks.
An experienced team of Fintecharbour experts is ready to help you with your startup. Through a network of affiliated partners, we provide support in many jurisdictions. When contacting you, complete confidentiality is guaranteed.