Why SMEs should get on a sound legal footing

Why SMEs should get on a sound legal footing

Legal & Compliance

GlobalLinker Staff

GlobalLinker Staff

17 May 2018, 09:06 — 3 min read

Often, we find that SMEs shy away from using legal services for a variety of reasons. The reasons vary but can be broadly attributed to a perception that there is no need or that the costs associated with legal services are not worth it.

While it is true that some law firms charge exorbitant amounts for their services, it is still possible to get quality legal advice and services at a good price. It is vital for SMEs to realise that building a business on a strong legal footing will lead to better business outcomes in the medium and long term.

 

Its common knowledge that a significant amount of all corporate business expenditure goes into availing of routine legal services. This may be drafting (contracts, company incorporation), filing (compliances, intellectual property) or settling disputes. This is because these companies know that by accessing legal help, they can manage and prevent escalation in issues that could severely hurt their bottomline. The same logic applies to SMEs.


Getting patents or trademarks for your products for example, guards you against imitators who may spring up in the market and hurt your business. In such situations, registering your brand name as a trademark is a crucial step to protecting your brand and enables you to make a better case for your SME in court, if the need should arise

Similarly, when it comes to establishing a partnership, adopting the right legal framework at the right time allows an SME to focus on business and not worry about potentially thorny issues that could occur between partners. It is a form of protection for the SME.

For most SME owners, the enterprise is more than just a company, it is almost an extension of their being and an undertaking that they have given their heart and soul to. Giving the SME a sound legal footing is the safeguard that allows business owners to do what they do best - focus on their core competency and grow the business. Every business however small or large, needs legal expertise, sooner or later.

 

Ensuring that your company gets on a sound legal footing may just be the best thing you can do to secure your firm's present and future.

  

If you’re a startup or entrepreneur looking to avail legal services, we’ve got an exciting offer for you! Exclusively for our GlobalLinker members, VakilSearch is offering 3 Legal Services for the unbeatable price of just ₹ 2,018 (excluding govt. charges & taxes). Legal Services include Trademark Registration, Partnership Agreement, GST Registration, Memorandum of Understanding, to name a few. Hurry, offer valid only for the first 2018 members!

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GlobalLinker Staff

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