Are Legal Consultants Important For Startups?

September 26, 2019

5 min read

This blog talks about how legal consultants are important for startups and what are a legal consultants responsibilities.


Puneet Bharadwaj

Consultant, Gurgaon

Are Legal Consultants Important For Startups?


Everything is regulated by law - from our property and jobs to our social interactions with others, be it personal or professional - and running a business is no different. Business incorporation, management, compliance and even shutting down the shop is regulated by law, and a startup comes face-to-face with numerous legal hurdles in its lifetime. Some say that consulting legal consultants is the best way for startups to handle their legal needs, some belief that businesses can handle their legal matters without hiring a lawyer. Let’s find out whether legal consultants are important for startups or not and what are a legal consultant’s responsibilities.

Who Is A Legal Consultant?

A legal consultant is a legal professional who is qualified as an advocate or a paralegal and provides legal assistance, services and consultation to individuals or businesses. When it comes to businesses, a legal consultant is responsible for providing legal advice and assistance in handling disputes, analysing and identifying the legal issues, drafting the legal documents, maintaining legal correspondence, etc.

A startup lawyer or legal consultant can prepare the startup for maximising its legal security from any unforeseen legal complications in the future. A legal consultant in India can also assist the startup in forming a legal opinion about important business transactions so that any legal risk associated with the transaction is perceived and mitigated in advance.  

Legal Consultant’s Responsibilities For A Startup

The main role and responsibility of a legal consultant are to provide assistance to the business in all its legal matters. A legal advisor also provides guidance and support for documentation, negotiations, litigation, registrations, legal compliance, and keeping the overall legal health of the startup in check.

The startup lawyer in India is also responsible for suggesting the best legal opinion for legal technical matters such as consumer disputes, internal employee disputes and complaints, and labour law compliance; drafting and vetting of watertight commercial contracts; conducting legal research for business expansion; overseas expansion, etc.

To summarise, the main responsibilities of a legal consultant in India include:

  1. Providing expert support and opinion on legal matters.

  2. Suggesting strategies for the startup to mitigate risk.

  3. Helping the business identify the situations which require legal attention.

  4. Providing support for drafting and vetting of contracts.

  5. Guiding the business for its legal compliance management.

Skills and Abilities Of A Legal Consultant

A business must consult a legal consultant who holds subject-matter expertise in dealing with the business’s legal needs and have technical proficiency in providing legal support for the industry and business model of the startup. 

The legal consultant must have good communication and analytical skills to be able to guide the startup towards the right legal direction. The startup consultant must be able to suggest the right solution for the business’s queries and present complex information in the easiest manner. 

Is A Legal Consultant Necessary For Startups?

The answer is yes! A legal consultant can provide much-needed support to new entrepreneurs in running a business successfully.

Business Incorporation

Generally, new startup owners are first-time entrepreneurs who lack the proper expertise and knowledge required to incorporate, manage or grow a business. Startup owners require legal assistance to give their business legal protection that they may not be qualified or able to give. A legal consultant can assist an entrepreneur in laying down the foundations of his/her business, choosing the right legal structure, giving it a legal identity and protecting it and themselves from unwanted liability. 

Registration And Documentation

A legal consultant can also support the startup founders in getting the requisite licenses and permits to start a new business in India, protecting the Intellectual Property of the startup and manage the documentation requirements such as drafting of co-founders agreement, term sheet, share subscription agreement, employee agreements, NDAs, service agreements, property documents, etc.


Sometimes, a startup may find itself stuck in a legal dispute with a client, vendor, business partner, shareholder, or even its own employees. A startup may not be able to bear the grunt of a legal conundrum and end up paying a large amount in legal fees. An outsourced legal consultant can not only suggest the right approach to the startup to deal with legal disputes but also provide guidance to intercept such disputes in advance.

Legal Compliance

There are numerous legal compliance requirements of a startup - compliance with labour and employment laws, corporate laws, consumer protection laws, FDI, taxation laws,  and much more. Legal compliance requirements of a startup directly affect the legal health and overall functionality of a business. A legal consultant can help the startup in managing and fulfiling its legal compliance requirements with ease and avoiding any scrutiny or action from concerned authorities.

Finding the right legal consultant who can understand the startup’s requirements and provide the best legal solutions is critical. SeekWiser resolves this difficulty by connecting startups with the best legal consultants in India and overseas. Call them at +91-8010880066 or send us an email at [email protected] to get started.