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Delhi Mumbai Allahabad Hyderabad Chandigarh
Bangalore
Gurgaon Pune Jaipur Mysore
This is meant for private circulation and is provided for your personal information only. © 2016
PSP LEGALAdvocates & Solicitors
LEGAL ISSUES FACED BY START-UPS
By:- Aditya Parolia
Partner, PSP Legal
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BUSINESS PLAN
LEGAL AND REGULATROY STRUCTURE
A SUCCESSFUL STARTUP
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“Ignorantia juris non excusat ”
Ignorance of law is no excuse
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Documentation and Contracts
• Incorporation Documents – Memorandum of Articles , Articles of Association, Shareholders Agreement;
• Confidentiality and Non- Disclosure Agreements; • Employment Contracts;• Non-Compete / Non- Solicitation Agreements;• Intellectual Property Assignment Agreements;• HR Policies;• ESOPs;• Software License Agreement;
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• Software Development Agreement;
• Assignment Agreement;
• Agency/Franchisee Agreement;
• Vendor/Supplier/Contractor Contracts;
• Online Agreements;
• Outsourcing Agreements;
• Click-Wrap Agreements;
• Privacy Policy;
• Lease;
• Insurance Agreements;
• Strategic Alliance Agreement;
• Equipment/Tech Lease.
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IMPORTANT CLAUSES• Definitions;• Indemnity Clause;• Confidentiality;• Representations and Warranties; • Jurisdiction and Governing Laws;• Dispute Resolution;• Other Boiler Plate Clauses.
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Dispute Resolution
COURTSLITIGATION
MEDIATION
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Civil Dispute
Criminal
Disputes
Corporate/ Commercial
DisputesMatrimonial Disputes
Consumer Disputes
Tribunals (Service ,
Environment)
Arbitrations (Domestic And International)
Debt Recovery
Service/ Labour Matters
Dispute Resolution
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Litigation
Supreme Court of India; High Courts of various States; District Courts; Company Law Board; Environmental Tribunals; Competition Commission; Board and Appellate Tribunal
Authority for Industrial & Financial Reconstruction;
Anti-Dumping Authorities; Consumer Protection Fora; Armed Forces Tribunal; Debt Recovery Tribunal; Labour Courts.
Arbitration · The International Chamber of
Commerce (ICC),
· London Court of International Arbitration (LCIA),
· Zurich Chamber of Commerce,
· Singapore International Arbitration Center (SIAC),
· Dubai International Arbitration Center (DIAC),
· Stockholm Chamber of Commerce,
· The Institute of Arbitrators and Mediators Australia (IAMA)
· United Nations Commission on International Trade Law (UNCITRAL)
Important laws
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Companies Act, 2013 Governs all Corporate Bodies.
Competition Act, 2002: Law to ensure free and fair competition in the market.
Consumer Protection Act, 1986:
Law relating to protection of consumers from unscrupulous traders/manufacturers.
Environment Protection Act, 1986:
Provides framework for seeking environmental clearances.
Foreign Exchange Management Act, 1999
Regulates foreign exchange transactions including foreign investment.
LABOURFactories Act, 1948 Law regulating labour in factories, Industrial
Disputes Act and Workmen compensation act
Important laws
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LABOUR LAW DEALING WITH DISPUTES Industries (development and Regulation act), 1951
Governs all Industries
DISPUTE SETTLEMENTArbitration and Conciliation Act, 1996
Provides for statutory recognition and procedure for arbitration and convention awards
TAXATIONCentral Excise Act, 1944 Governs duty levied on manufacture.Customs Act, 1962 Deals with import regulations.Customs Tariff (Amendment) Act, 2003
The Act puts in place a uniform commodity classification code based on globally adopted nomenclature system for use in all trade-related transactions.
Income Tax Act, 1961 Governs direct taxes on income of all persons, both corporate and non-corporate as well as residents and non-residents.
Sales Tax Act, 1948 Governs the levy of tax on sales.
Important laws
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SPECIFIC SECTORElectricity Act 2003 Regulates generation, transmission, distribution,
trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
Seeks to put in place securitisation and asset foreclosure laws creating a legal framework for establishment of Asset Reconstruction Companies.
OTHER LAWSInformation Technology Act 2000
Law governing E-commerce transactions.
Money Laundering Act Prevents money laundering and providesfor confiscation of property derived from, or involved in, money laundering
Special Economic Zones Act 2005
A comprehensive Act : Provides for the establishment, development and management of the Special Economic Zones for the promotion of exports and for matters connected therewith or incidental thereto.
Important laws
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Patents Act, Copyright Act, Trade Marks Act
Protect intellectual property rights.
Indian Contract Act, 1872 The Indian law that governs contracts is codified as the Indian Contract Act, which encapsulates provisions governing the entire life of a contract from its formation to its implementation and conclusion. ICA also provides remedies for breach of contract.
Sale of Goods Act, 1930 The basic provisions of the ICA also apply to the contract of sale of goods. The basic requirements of a contract include offer and acceptance, legally enforceable agreement, mutual consent, parties competent to enter contracts, free consent, lawful object and considerations that apply to the contract of sale of goods.
In a contract of sale of goods the seller transfers or agrees to transfer the property (ownership) of the goods to the buyer for a price. A sale is an executed contract, i.e., there is a contract as well as a conveyance. In other words, the property of the goods is transferred from the seller to the buyer.
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Contact Us
Chamber303, C.K Daphtray Block,Supreme Court of India,
Tilak Lane,New Delhi-110001
DelhiC-38, Lower Ground Floor,
Panchsheel Enclave,New Delhi-110017
Ph. No.: 011-451051567
Chandigarh418-P, Sector 12-A,Panchkula- 134109
Haryana
Pune503 Corporate Plaza
106A Senapati Bapat RoadShivajinagar,
Pune - 411016 (India)Tel: +91-20-25631155/40032169
AllahabadFlat No.1/12, Alkapuri, Hastings Road,
Opposite Circuit House, AllahabadPh. No.: 0532-2424106
BangaloreChamber no. 5 ,No.2,
Mourya Mansion,1st Floor, 1st Main, 1st Cross,
Gandhinagar,Bangalore - 560009.
Aditya Parolia+91-9868012992
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DisclaimerThis presentation is not intended to be, nor is, a source or form of publicity, advertisement or solicitation of work.
This presentation or any communication related to this presentation does not establish or purport to establish an attorney-client relationship, nor is it to be construed as an invitation for such relationship.
The viewer acknowledges that he/she has read and understood the disclaimer as provided hereinabove. The viewer acknowledges that there has been no inducement, invitation or solicitation of any nature whatsoever from PSP Legal. or any of its members to create an attorney-client relationship through this presentation.