4 Areas Where Small Entrepreneurs Can Get Trap Regarding Legal Matters

Owners of small business tend to think that they are running the show in every aspect & a legal advisor is considered as a waste of valuable funds; which often sounds right!

But is it absolutely right? Is your business hassles free from all the legal matters? Can you foresee legal issues your small business might face? Can you handle those issues yourself? Before or after your business is in trouble do you seek for advice?  We cannot answer all the questions for you, therefore, we have identified 4 different areas where the small business can get trapped, so keep a sharp look out for them.

1. Protect your IPR: Did you know that 60% of Indian small businesses suffer from the IPR lawsuits. A small business normally invests their blood and sweat in creating few intellectual property and hence protecting the IP becomes core, various examples of companies like XAOMI who gets into the IPR battles with the large players is really a lose for most of the small business.

2. Get your documentation done seriously and all your agreements down in writing. All the important business agreements should be put in writing. Oral agreements are usually difficult to prosecute and leave you with no remedy for compensation or legal action. Make sure your contracts are well thought-out, drafted in your favour, and gives you the compliance and protection.

3. Not clearly documenting partners' rights and responsibilities: Co-founder conflict is reasonably the single largest reason for the failure of small business. Have you got a co-founders’ agreement or any kind of written agreement that covers the rights, roles and duties of the founders/promoters of the business?

4. Proper corporate record which leads to Regulatory NON-compliance. Records kept improperly can cause problems with the revenue guys which can hamper the ability to raise the equity capital resulting in personal liability, and risks on the regulatory front.
 

Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.

With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.