Legal Issues for Small and Medium Businesses

7/28/2019 Legal Issues for Small and Medium Businesses

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LawQuest 2010. All Rights Reserved


Presented by

Poorvi Chothani, Esq.LawQuest, Mumbai

www.lawquestinternational.com

Legal Issues for Small

and Medium BusinessesMumbai, May 20, 2010


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Vital Legal Issues

Four Key Legal Topics to Address

Legal Restrictions/Limits Select Entity Type

Protect Intellectual Capital

Develop Basic Legal Documents


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Address Legal Restrictions/Limits

Government/Regulatory Permits

Zoning

Licenses

Private Non-compete Agreements


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Select Entity Type

Sole-Proprietorship

Pros - Easy/cheap to startTax advantages

Management flexibility

Cons - No limit of liabilityLack of continuity/transferability

Limits ability to raise capital

NOTE: Must register a d/b/a (assumed name) if not using your legal

name


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Select Entity Type

General Partnership

Pros - Easy/cheap to startTax advantages

Management flexibility

Cons - No limit of liability (for partner, too)Lack of continuity/transferability

Limits ability to raise capital

NOTE: Must register a d/b/a (assumed name) if not using your legal

name


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Select Entity Type

Limited Liability Company

Currently only professionals are

permitted to set up LLPs


7/15 LawQuest 2010. All Rights Reserved

Select Entity Type

Company

ProsLimited LiabilityContinuity/transferability

Greater ability to raise capital

Perception advantage

Cons - Some formality/expense requiredLimited management flexibilityTax - require additional filings



Protect Intellectual Capital

Intellectual Property (IP) Includes:Trademarks / Trade Names / Trade Dress

- Searches & Registration

Intellectual Property on the Internet- Domain Name Registration

- Multiple First Level Registrations

Copyrights- Searches & Registration

Patents- Registration Required

Trade Secrets- No Registration Required

- Non-Disclosure/Non-Competes- Stringent systems and enforcement for protection



Develop Basic Legal Documents

Common Legal Agreements You May Need:

Memorandum of Understanding

Joint Venture Agreements/Shareholder Agreements

Purchase/Services Agreement

Terms and Conditions

Employment Agreements

Consulting Agreements IP-related agreements



Essentials of an Agreement

All parties are in agreement (after an offerhas been made by one party and acceptedby the other)

Risk of offers and acceptance Limit by time

Something of value has been exchanged,

such as cash, services or goods (or apromise to exchange such an item) forsomething else of value.



Essentials of an Agreement

Clear Objectives

Clear communication

Record of all contracts

Tabulate time lines to ensure compliance

Tabulate deliverables to ensure compliance

Conditions and warranty

Requirements to ensure protection of business interests

Technical and legal expectations

Special inclusions / exclusions required

Techniques to obtain the desired outcome whencommercial leverage is absent



Key Elements of a Contract

Dispute Resolution Options

Seat or location of where dispute will be addressed

Courtroom Litigation v Arbitration Applicable Law

Escalation within the organizations

Mediation



Conclusion

Companies must budget for legal, company

secretary and chartered accountant expenses

Failure to adequately address legal and

compliance issues initially can cause significant

problems and expenses later.



LawQuests Areas of Practice

Areas of Practice

Corporate Law

Intellectual Property Law

Real Estate Law

Employment Law

Global Work Permits and

Business Visas

The U.S. The U.K.Canada India

Poland Mauritius

Australia New Zealand

Singapore The Philippines

About LawQuest

Provides Client Centric Legal Solutions

Member of the NY State Bar Association, the

ABA, IBA

Member of the American Immigration

Lawyers Association

Founder Member of the Global Migration

Action Group in AILA

Former Member of the Alliance of Business

Immigration Lawyers (ABIL)

Member of the European Association of

Attorneys A Worldwide Network of Lawyers


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