Lawyers for Startups
We work with startups across the Kingdom on contracts, compliance and disputes, with a practical grasp of how the sector actually operates.
Overview
Startups defer legal work because it looks like cost with no immediate return. But the three things usually deferred — the founders' agreement, IP assignment of the code, and round documents — are exactly what stops an acquisition or the next round three years later.
We work with founders on what they actually need at each stage: incorporation in a form that suits later rounds, founders' agreements and vesting, developer and employment contracts with IP assignment, digital product documentation, then round documents from term sheet to closing.
We do not sell startups what they do not need. In year one you need four documents; the rest can wait. But if those four are missing, they become far more expensive when an investor asks for them two years later, because fixing them then requires consent from parties whose relationship with you has changed.
The legal framework
Startups intersect with company, IP and data regimes:
- The Companies Law: limited liability and simplified joint stock companies
- Share classes and preferential rights in the constitutional documents
- IP statutes protecting the brand and the codebase
- The Personal Data Protection Law for digital products
- The Labour Law on employment contracts and incentive plans
- Sector licensing requirements in regulated activities
Situations we handle
Founding with several co-founders
Equity, vesting and early departure are written before success, because agreeing afterwards is far harder.
A first funding round
The term sheet sets what everything else is built on, and treating it lightly is expensive.
Assigning ownership of the product
Developer agreements without assignment mean the company does not own its product, and that halts any diligence.
Team incentives
A written plan setting the pool, vesting, and what happens on departure or acquisition.
A product processing data
A privacy policy built on an actual data flow review, not text copied from another product.
Costly mistakes we see
- 1
Equity without vesting
A founder leaving early with full equity blocks the company with any serious investor, and can only be fixed with their consent.
- 2
Verbal promises of equity
An undocumented promise becomes a dispute the moment the company succeeds. Document it in a written plan or do not say it.
- 3
Copied round documents
Foreign templates assume a different legal environment and can contain rights that do not operate locally as drafted.
- 4
Mixing personal and company accounts
This complicates valuation and diligence later and weakens limited liability protection at the worst moment.
How the procedure runs, step by step
Startups do not need a legal department. They need four things in order before the round: ownership, vesting, IP, and contracts. The rest can wait.
- 1
Set up the entity and the cap table
We build a simple, scalable structure: clear splits, founder vesting, and room for an employee pool. An over-engineered structure early costs more than it protects.
- 2
Assign the IP to the entity
Agreements with everyone who wrote code or designed an interface, with an express assignment clause. This is the cheapest legal step in a company’s life and the one that most often saves it at diligence.
- 3
Customer and partnership contracts
A short, clear contract template for early customers instead of a long-form agreement that slows the sale or an email with no obligations. Your first customer sets your contract model for years.
- 4
The funding round
We review the term sheet and explain the effect of each right: liquidation preference, vetoes, board seats, and anti-dilution. A founder who understands the sheet negotiates; one who does not signs.
- 5
Build procedural discipline
Board minutes, documented resolutions, and a contract register from the first round. A company that learns to document early closes its next rounds in a fraction of the time and cost.
Documents we will ask you for
- Commercial registration and the constitution
- The founders’ agreement and cap table
- Developer and designer agreements
- The term sheet, if there is one
- Current customer contracts
- A description of the product and its data flow
Fees and timelines
We offer a formation package at a fixed fee covering what the company actually needs in its first year, and no more. Round documents are priced separately according to size and negotiation complexity, and we tell you what can safely wait.
On timing: the formation package takes one to two weeks. A round moves at the investor's pace and typically takes three weeks to two months from term sheet to closing.
Common questions
What documents do we need in year one?
Four: carefully drafted articles, a founders' agreement with vesting, developer and employment contracts containing IP assignment, and digital product documentation if the product collects data. The rest can wait.
Which legal form suits us?
An LLC is sufficient at the start; the simplified joint stock company suits founders planning rounds, share classes and incentive plans. Converting later is possible but consumes time at a critical moment.
What is vesting and why do we need it?
An arrangement under which founder equity is earned over time rather than owned outright from day one. It protects the company against an early departure with a large stake, and it is the first thing a serious investor asks about.
Who owns the code?
The developer, unless the agreement expressly assigns rights to the company. This point halts the first diligence exercise, and fixing it later needs consent from people you may not be able to find.
Is the term sheet binding?
Most of it is not, apart from clauses such as confidentiality and exclusivity, but in practice it dictates the final documents. Treating it lightly costs a great deal at closing.
How do we give the team incentives?
Through a written plan setting the pool, vesting conditions and what happens on departure or acquisition, reflected in the company documents. Verbal promises turn into disputes when the company succeeds.
When do we need a privacy policy?
From the first user, if the product collects personal data — and it is written after an actual data flow review. Text copied from another product does not describe what you do.
What does an investor examine?
Share ownership and vesting, ownership of the product and IP, customer and employment contracts, and regulatory compliance. Organised companies close their rounds noticeably faster.
Related services
Startup & Venture Capital Lawyers
We work with founders and investors from incorporation through funding rounds and exit.
Company Formation Lawyers
We handle company formation from choice of legal form through issue of the commercial register.
Corporate Documentation Lawyers
We prepare assembly minutes, shareholder resolutions, powers of attorney and other corporate records.