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What Startups Should Know About Hiring the Lawyer

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Abhijit MukhopadhyayPresident (Legal) & General CounselHinduja GroupHiring a lawyer is always tricky. It does not matter whether a lawyer is being hired by any small, medium or big entity. You can, therefore, imagine if a startup needs to hire a lawyer. Relationship with a lawyer is something based on trust and confidence. This is true for any long term relationship and the legal profession is no exception.

For a bigger enterprise, hiring a lawyer is frequent, where as for a startup, it is a whole new experience. Going to the doctor or hiring a lawyer can make people uncomfortable. This is mainly because of the fact that both these professions are quite unknown to many and people generally are ignorant about the knowledge that they deal with. This is true for a startup also. The matter becomes complicated if the area of law being dealt with is complex and/or the lawyer is difficult to handle. It is, therefore, important that the start-ups should have clarity as to who they are hiring and what for, and also at what cost.

1.Issues to Remember

Before hiring a lawyer, a start-up should consider the following:

•For what issues is the lawyer recommended?
•Is it for Indian or international law?
•What exactly are the legal issues involved?
•Does the start-up need a big name,highly skilled and specialised or other wise?
•Whether a law firm is needed or an individual specialised lawyer will do?
•What is the lawyer’s background or relative experience?
•Is the lawyer capable of providing a practical solution, or is he/she an academic lawyer?
•Is the lawyer flexible in fees, considering a startup is involved?
•What is the availability of the lawyer? Is he/she in the same city?

2.Do's and Don’ts

There is no hard and fast rule when selecting a lawyer. As I have mentioned before,the most important issue is having faith and confidence between the parties. However, the following may be noted:
•For a startup, it is better to consult someone who has had the same issues and whether they can recommend a lawyer.
•It is better to engage a smart, flexible, practical, knowledgeable and a young lawyer with a creative mind rather than selecting someone who is weighty.
•Startup should negotiate their fees at the beginning itself.
•If the fees required are a one off, then fixed fee is desirable.
•One should not agree with fee on hourly basis.
•Startup should make the lawyer understand the technical/commercial/financial angles of the legal problem for clarity.
•Definitive timeline should be drawn for getting written advice from the lawyer.
•Startup should go to a lawyer who understands commercial aspects.

It is better to engage a smart,flexible, practical, knowledgeable and a young lawyer with a creative mind rather than selecting some one who is weighty


Generally speaking, it is not a nightmare for start-up to deal with a lawyer. However, it may turn out to be so if the above is not followed. The author engages lawyers from around the world who are small, medium, big and very big and many of them are global players. With this kind of experience, the author can say that a good lawyer is a trusted friend and if the relationship is based on trust and confidence, satisfaction can be beneficial to both the startup and the lawyer. Over a period of time, it may so happen that the lawyer becomes a trusted friend and advisor of the startup.