Article image
Legal commentary Corporate advisory practice

The principal legal risks facing startups

Four risks that recur in startups, and how to address them before they become a dispute.

Legal risk is among the most significant threats to the success and continuity of a startup. While founders are absorbed in building their idea and scaling the business, latent legal issues can creep in, obstructing growth and weakening the prospects of long-term sustainability.

From our practice with startups, four risks recur in particular — all of them addressable early, at a fraction of the cost of a dispute.

01

No clear partnership agreement

The absence of a comprehensive agreement setting out partners' rights and obligations, and the mechanisms for dispute resolution and exit.

02

Regulatory non-compliance

Disregarding local laws and regulations, or failing to track their periodic updates.

03

Poorly drafted contracts

Breaching the terms of contracts with suppliers, clients or employees — or drafting them weakly in the first place.

04

Neglecting intellectual property

Failing to register trademarks, patents or creative rights in good time.

How are these risks addressed?

Remedy does not begin when the dispute arises, but at incorporation: a written partnership agreement, periodic compliance review, standardised contract templates, and a clear register of intellectual property rights. Four steps that protect the company at its most fragile stage.

We have a team specialised in startup incorporation, founder agreements and investment rounds.

Book a consultation
← Back to Insights