15 Important Legal Documentation for Startups in India

Certificate of Incorporation - Makes the business valid, and makes it come into existence. It includes the name of the business and abbreviations, if any along with a statement of purpose. It is provided after all the steps to incorporate the company have been completed. It includes the name of the company and its abbreviated forms, along with a statement specifying the purpose of the business.

Non-Disclosure Agreement - It is a legally binding contract between two parties that establishes a confidential relationship between the said parties. Such an agreement is aimed at protecting the trade interests of a company and therefore, plays a very key role. It identifies confidential information and lists down guidelines to maintain the same. It also specifies the time period for which such an agreement is binding. Since it is a legally valid and binding contract, it also subsequently has liabilities for breach of the non disclosure agreement. 

Director Identification Number - Is an eight digit unique identification number with a lifetime validity which is allotted by the Central Government to any person intending to be the director of a company. Each director can only be allotted one unique identification number. 

Permanent Account Number - This is a ten-digit unique identification alphanumeric number assigned to entities that are liable to pay tax. A PAN card issued to a company is different from those issued to individuals. It includes the name of the corporation along with the date of incorporation. It is used for corporate taxation and business transactions.

Good and Services Tax Registration Number - This is a distinct 15-digit identification code allotted to each taxpayer (any business entity) registered under the GST regime. It is based on the state code, PAN, entity code, and check digit. It provides legal recognition of the business entity as a supplier of goods or services. It ensures that the business is compliant with tax norms.

Shareholders Agreement - This document determines the relationship between the shareholders and also proves beneficial in case a co-founder decides to leave the company. 

Trademark - Assists in building the brand, and seeking protection for the company name and brand. It prevents competitors from stealing the brand name or concept.

Article and Memorandum of Association - The Article of Association constitutes a legal deed that incorporates the legal norms, rules, and process for the management and operation of a company. The Memorandum of Association is a legal document that builds the foundation of the existence of a company. It calls for the documents for forming a company that outlines its objectives and fundamental details.

Founders Agreement - The agreement should specify the founders’ relationship, the likelihood that all work will eventually belong to another organisation, and a basic communication and conflict-resolution provision that will help avoid conflicts.

Intellectual Property Agreement - Intellectual Property is an inclusive term for intangible assets or assets that are not physical. An individual’s intellectual property rights are infringed when a third party engages in unauthorized use of the asset. Startups often rely heavily on intellectual property, as the company’s portfolio evaluation is what attracts reputable investors. It is important to have full control of intellectual property.  It is usually in the form of Patents, Copyrights, Trademarks, Franchises, and Trade Secrets. 

Employment Agreements - Employment agreements form the basis of the personnel in the organization. It consists of the rights and obligations of the employees and also contains guidelines as to how disputes would be resolved within the organization.

Licenses - Any company must also have licenses to operate. Several licenses are applicable in India, depending on the nature and size of the company. Lack of applicable licenses will result in expensive litigation and needless legal battles. 

Bylaws and Business Plan -  Every company requires a set of operating rules or principles that govern the area. Bylaws serve as these rules. Business Plan refers to the type and structure of the business and protects from liability.

Website Terms and Conditions - It is an agreement between the website proprietor and the site’s users and contains restrictions on how the portal may be used.

Employee Identification Number - Issued by the Income Tax Department to both businesses and non-profit organizations for taxation purposes.