Most important legal tips before you serve delicious platter through your Foodtech startup
Finally, you’ve gathered all fire in your belly to quit your regular job and startup your long-dreamt Foodtech venture. That’s a good call. You must’ve zeroed down on your food specialty to offer on the platter, and could’ve figured out the perfect place to start with.
You also would’ve organized many things to make it a smooth run.
But have you fully understood one of the key parts before starting up a Foodtech. That is the Legal considerations. Let’s find it out one by one –
The first and foremost thing prior a Foodtech Startup is deciding at the right business structure. If you’re set to run the show all on your own as a solo rider, then probably you may have to follow the legal procedures for Sole trader. Profit or loss, you as a sole trader will be responsible for any situation of the business. In case, you’ve planned with more than two people or a group then it would be registered as a Limited company, and the liabilities will be a responsibility of shareholders other than following other legal responsibilities.
You must be ready with at least 3-5 names before going in for registration, chances are that the names you have thought would already be appearing in the registration list. Your logo designs, packaging, font styles and other printing assets need to be unique, unidentical and dissimilar, in order to give your brand a new look and appearance.
Since you would be dealing in Food startup, it is very essential in your part to know it completely who all your regulatory bodies to fulfill the compliances. It becomes all the more important as food is considered to be the most savior industry and maintaining quality is the key. That being said, a foodtech entrepreneur is expected to know his ingredients quality well, aware of general food law as well as food safety requirements, hygienic essentials for staff as well as for food.
The most important thing before starting up a foodtech startup. Getting the respective FSSAI license certificate from the appropriate council or authority to begin with, else it can land up in legal troubles, causing a great damage to pay up as penalty. If alcohol is also on the platter serving, then the respective certificate is required to achieve from the authority.
Any dealings –small or big- must be contracted in a written format for the parties involved in doing or carrying out the business. It can be employee contract, vendors’ contract, investors or outside parties. There are many hurdles that may come up once the venture is started, it’s better to take these contracts beforehand. Ensure you’re very much on the page for the legal terms that is written in all those loan agreement, shareholders termsheets, distribution agreements and suppliers note. Each document needs your full consent upon which the agreement can be legalized further.
Buying insurance is one of those prudent steps to feel protected against all those odds that may intervene at any point in time. However, it gives you a lot of peace at business. There are a number of insurance plans available, find them rightly and get the most appropriate one that suit your business right.
Get Tax obligations right
Unless you’re an accountant yourself, don’t avoid the tax part which may linger you out badly. Hire one and get your portion of tax obligations rightly and the respective mandates into that area to learn while being into the business.
Secure your Intellectual Property
Do you know even a small idea of yours can be stolen or copied by a clever eagle and be transformed into business gains. Get your ideas protected, small or big, as a part of Intellectual Properties Act. Also find out, if you have any patents, trademarks or copyrights to be protected, so that your ideas will be in the safe bank.
Formalize Buy-Sell Agreement
This is one of the important documents to be placed well before you even start a small venture. Even if you don’t have partners in place, this document will formalize between players involved in the business.
Get Legal advisory
Before you startup, your due diligence needs to be worked up well and put all legal terms and papers into the right bay. Ask as many as stupid or logical questions to your legal advisor to protect or fulfill any uncertainty due to non fulfilling any legal duty.
The more honesty and integrity you would show to your venture, the more appreciation you may get from your customers. Show all legal disclaimers on your products, in order to ensure you care for their health and hygiene as importantly as they do personally.