While starting a business or running an existing company, most of the entrepreneurs pay special attention to market their products/services, attract more and more customers, and generate the maximum revenue every day/week, month/year. The overwhelming number of daily tasks distracts them the potential legal risks looming around them.
If you make mistakes knowingly or unknowingly while operating/starting your business, you are bound to face the legal scanner sooner or later. Always keep in mind that too many litigations against your company/organization damage your brand and negatively affect the business opportunities you make. So, what are the main legal tips you should follow to keep your business free from the possible litigations? Just have a look at the points mentioned below to know that:
1. Get Your Business Registered ASAP
When you start your business, you should have at least the basic knowledge of the existing company law. Just get your company registered once it meets the standards set by the government. This will help you to run your business legally and avoid the punitive measures taken by the government and different law enforcement agencies.
It is possible that you may not have all-inclusive knowledge of the existing business law. In that case, you can avail the business registration services provided by corporate lawyers and law firms. This would enable you to get your business registered easily and run it smoothly. Don't operate shell companies to avoid your tax liabilities, responsibilities towards employees and shareholders, etc. If you are found be running a shell company, then its consequences will be dire.
2. Make All Business Agreements In Writing
In business, there is no place for emotions, personal privilege or liking towards some employees/stakeholders/associates. When you run your business activities without making any legally binding agreement, then it is possible that your business partners/associates take a sharp U-turn and fail to comply with rules and regulations.
Therefore, make your terms and conditions clear to all. Just make business agreements in writing as per the law. This will eliminate a lot of fake cases against your company and keep your business safe.
3. Hire A Competent And Reliable Law Firm
When you launch your business and make progress in it, you hardly get any time to deal with legal issues that come in your way. Therefore, you must seek the help of the law firms that provide startup lawyers in India. Just evaluate different lawyers or law firms from different angles and choose the best ones.
Once you hire a competent lawyer or a law firm, they help you to formulate business plans/strategies/ marketing policies as per the existing law and garner the maximum benefits out of that without facing any legal obstacles.
4. Have A Crisis Management Plan
Unfortunately, most of the companies don't have any definite mechanism to tackle bogus cases filed against them. So, when they face legal problems, panic and horror negatively affect their day-to-day business activities. As a result, they suffer a great loss in the business little by little if cases are not eliminated sooner or later.
Just have a definite crisis management plan and be clear about a few things, such as quick decision-making ability in case of an investigation against the company, public communication, disciplined internal communication, key data and documents, preservation of privilege. This will help you to sort out different legal cases against your company with a little practice only.
5. Make Dispute Resolution Agreements With Business Associates
Disputes and disagreements are quite natural in business. Some disputes are of lower scale, some others are complex, involving the interest of shareholders, employees, CEOs, business partners, investors, etc. If you take every dispute to the court of law, it would be very difficult to perform day to day activities. Disputes are quite common in companies formed through Mergers and acquisition.
Therefore, you should make dispute resolution agreements with your business partners. This will help you to deal with minor disputes and disagreements easily in consultation with the experienced corporate lawyers and keep needless litigations away.
Final Words:
Disputes, legal risks, and litigations come in your way every now and then if you don't follow the business law as prescribed by the government. By implementing the above-mentioned tips, you can easily repel the possibility of ligations against your company and run your business smoothly.