{"id":7112,"date":"2023-06-19T22:21:23","date_gmt":"2023-06-19T14:21:23","guid":{"rendered":"https:\/\/zegal.com\/?p=7112"},"modified":"2024-12-27T18:49:16","modified_gmt":"2024-12-27T10:49:16","slug":"legal-documents-every-business-should-have","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-hk\/blog\/post\/legal-documents-every-business-should-have\/","title":{"rendered":"7 Legal Documents Every Business Should Have"},"content":{"rendered":"\n

Legal Documents play an essential role in protecting the interests of a business and the business owners throughout a company\u2019s lifetime.<\/p>\n\n\n\n

If you\u2019re starting a business, tackling your legal needs can seem daunting, but it doesn\u2019t have to be. It\u2019s wise to start protecting your business at the very start and not leave it until it\u2019s too late.<\/p>\n\n\n\n

Here are some key legal documents essential for a business\u2019s success.<\/p>\n\n\n\n

<\/span>1. Confidentiality Agreement<\/span><\/h2>\n\n\n\n

In the excitement of setting up a business, it\u2019s natural to want to share your ideas with family and friends. But remember, once an idea is out there, you can\u2019t draw it back in.<\/p>\n\n\n\n

If you are working with potential business partners and will share your business ideas with them, ask them to sign a\u00a0Confidentiality Agreement<\/a>\u00a0(also known as a Non-disclosure Agreement or NDA), under which they are legally bound not to disclose your confidential information to a third party, and may only use that information for a specified reason.<\/p>\n\n\n\n

Non-disclosure agreements<\/a>\u00a0forbid your business partners or employees from disclosing confidential and proprietary information about your company like brand name<\/a>, product design<\/a>, and specifications.<\/p>\n\n\n\n

In the case of employees, before sharing any confidential information, an employer should put confidentiality expectations in written form so that it\u2019s clear what information they can share.<\/p>\n\n\n\n

<\/span>2. Shareholders\u2019 Agreement or Partnership Agreement<\/span><\/h2>\n\n\n\n

A\u00a0Shareholders\u2019 Agreement<\/a>\u00a0is an agreement between the shareholders of a company.<\/p>\n\n\n\n

It sets out many critical rules for how the business will run, ensuring that the shareholders cooperate and continuity throughout the company\u2019s life.<\/p>\n\n\n\n

This document should cover who the shareholders are, their\u00a0rights and responsibilities<\/a>, and what will happen if and when they decide to leave the company.<\/p>\n\n\n\n

If you operate under a business partnership, ensure you have a\u00a0Partnership Agreement<\/a>\u00a0that sets out how decisions are made, and profits (and liabilities) are shared.<\/p>\n\n\n\n

You can make\u00a0several legal documents for your partnership business.<\/a><\/p>\n\n\n\n

Everyone involved in a partnership\/shareholders\u2019 agreement should understand and agree on the terms and conditions.<\/p>\n\n\n\n

<\/span>3. Employment Contract<\/span><\/h2>\n\n\n\n

An employment relationship should be documented right from the outset.<\/p>\n\n\n\n

An\u00a0Employment Contract<\/a>\u00a0sets out the obligations and expectations of both the company and the employee to minimise potential disputes.<\/p>\n\n\n\n

An Employment Contract should cover key areas such as<\/p>\n\n\n\n