Conversations Legal Clinic For Startups - QnA
Jatin Chaudhary
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Legal Clinic For Startups - QnA

You can ask any legal & accounting related questions to fellow eChai Members and experts from the community here. They'll respond to your queries here.

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Prem Nathwani

The Legal Clinic For Startups comes just about the time when I am looking to register an LLP.
I had a question in regards to the operation that an LLP could carry out? Can a single LLP deal with two different unrelated domains? Or they need to be registered separately?

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Vishesh Bansal
Lawyer, Advisor, Connector.

Yes, a single LLP can deal with more than one domain at a time. It will work in the same manner how a Toyota owns and operates Lexus and It's Sewing Machine Business.

Prem Nathwani
Computer Engineer by degree and a salesman by heart. On a constant endeavour of learning the advantage of new tech and make it available for masses through product design.

What is the process if we add a new domain and want it to be under our already registered LLP?

Vishesh Bansal
Lawyer, Advisor, Connector.

Depends on what the new domain is. Could you please elaborate?

Prem Nathwani
Computer Engineer by degree and a salesman by heart. On a constant endeavour of learning the advantage of new tech and make it available for masses through product design.

Hey Vishesh! Thanks for the reply. We would be registered as online software services but considering offline too for some of the internal product that we might be developing.

Vishesh Bansal
Lawyer, Advisor, Connector.

In the present case, both domains can run together and there is no need to have different legal entities to sustain your operations. One would do.

As far as the legal setup is concerned, I would recommend you to look up in detail on different legal setups before you decide to rush in for an LLP.

Shrijay Sheth
Shrijay is an eCommerce industry veteran and an entrepreneur with 10+ years of experience in working with businesses of varied geography, scale, culture and lifecycle. Shrijay has worked with some of the most disruptive businesses like Qualcomm, LegalZoom.com, TheBouqs.com and more. He is a co-founder at Legal eCommerce start-up www.LegalWiz.in and runs an eCommerce strategy and analytics consultancy Hire4Higher Consulting. Shrijay is a true believer of people first philosophy, and largely credits his development to wide range of traveling opportunities he has gotten, both in professional and personal capacity.

While filing for an LLP, you will have to define main object and scope of operation. This will primarily define the business activities that your LLP is going to conduct. You can add related and ancillary activities with your main object in the agreement. This gives you flexibility to carry out related activities.

While, a business can be incorporated with various objectives, in the related field of operations and industry and not unrelated fields.

For Example, LegalWiz.in Private Limited is a Company engaged in provision of Legal Services through online mode for setting up Businesses with required registration requirement. Here, LegalWiz.in may engage into activities of providing services through offline mode, representational services for clients, Tax consultancy, management consultancy, etc. However, being in the field of professional services, the company cannot engage into activities of product marketing, portfolio management, IT enabled services, construction services or trading of goods as the activities are not related to each other or of same nature.

The aim behind this restriction is to hold a company/LLP and the officers responsible for the specified activities and focus on the same related field only. Where a company/LLP is engaged into various different objectives, the investors or the financial institutes may resist providing the funds to the company. The return from two different unrelated activities will be diversified and the same will be difficult for the investors to focus in same field as the rate of growth and rate of return are different for different industries.

If promoters are willing to engage into various activities, a group of companies/LLP can be incorporated for different objectives. Another option is to incorporate subsidiary businesses under one holding company.

Prem Nathwani
Computer Engineer by degree and a salesman by heart. On a constant endeavour of learning the advantage of new tech and make it available for masses through product design.

Hey Shrijay! Thanks for the reply. That cleared my doubt. I have not mentioned a couple of BO in the questionnaire that LegalWiz had sent me. Will update it now.

Shrijay Sheth
Shrijay is an eCommerce industry veteran and an entrepreneur with 10+ years of experience in working with businesses of varied geography, scale, culture and lifecycle. Shrijay has worked with some of the most disruptive businesses like Qualcomm, LegalZoom.com, TheBouqs.com and more. He is a co-founder at Legal eCommerce start-up www.LegalWiz.in and runs an eCommerce strategy and analytics consultancy Hire4Higher Consulting. Shrijay is a true believer of people first philosophy, and largely credits his development to wide range of traveling opportunities he has gotten, both in professional and personal capacity.

Great! I will ask the team to coordinate on that.. Thanks for trusting LegalWiz.in as a business professional partner in your growth story.. Cheers!

Dhruveel Dave

How to make sure employees don't leak internal information or resources of a company.?
Specially IT field.

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Vishesh Bansal
Lawyer, Advisor, Connector.

An agreement of non disclosure usually does the trick. Famously known as "NDA" in the Tech business. It is frequently employed as a tool to safeguard internal secrets of a company.

pranav thakkar
A Trademark Attorney, Tax Consultant and Advocate.

but its difficult to prove and punish even if NDA is breached..

Vishesh Bansal
Lawyer, Advisor, Connector.

Most failures are on account of inability of the aggrieved party to keep a documentation of the breach or an unwillingness to pursue legal action.

If there is a paper trail/ chain of evidences of the breach; Implementing the terms of a Non Disclosure Agreement aren't difficult.

Shrijay Sheth
Shrijay is an eCommerce industry veteran and an entrepreneur with 10+ years of experience in working with businesses of varied geography, scale, culture and lifecycle. Shrijay has worked with some of the most disruptive businesses like Qualcomm, LegalZoom.com, TheBouqs.com and more. He is a co-founder at Legal eCommerce start-up www.LegalWiz.in and runs an eCommerce strategy and analytics consultancy Hire4Higher Consulting. Shrijay is a true believer of people first philosophy, and largely credits his development to wide range of traveling opportunities he has gotten, both in professional and personal capacity.

Non Disclosure Agreement is advised to be signed as part of employment contract. Also, in many cases, key employees are/ should be asked to sign a non-compete agreement which prevents the employee to take a significant role in other businesses of similar nature or to start his/her own venture with same line of product/services.

Kavita Singh

What copyright requirements are there for writers/authors or anyone who is in literature field?

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Vishesh Bansal
Lawyer, Advisor, Connector.

It depends on the nature of work. Say, if a journalist or a content writer works at a news media outlet/ ad agency; then usually the copyright to the work created by such individual belongs to he business he/she is employed with.

This is true when the work has been created in lieu of fulfillment of his/her obligations towards the employer. However, this may not hold true if there is an agreement between the Author and the Organisation he/she works for which provides for otherwise.

For authors looking to publish a novel or a book of any sort, the above or a variation of the above holds true in case they are publishing via a publishing house. However, in case of self publishing
the author usually retains first right over his/her work.

As far as requirements go, it is advised that the author may have contracts in place with whosoever he/she is dealing with regards to any commercial application of his/her work.
Further, to ensure protection of the rights of the author; the work needs to be traceable to the person claiming to be it's author. Usually the first to publish is considered an author of the work unless there is any evidence which proves a contrarian stand.

Shrijay Sheth
Shrijay is an eCommerce industry veteran and an entrepreneur with 10+ years of experience in working with businesses of varied geography, scale, culture and lifecycle. Shrijay has worked with some of the most disruptive businesses like Qualcomm, LegalZoom.com, TheBouqs.com and more. He is a co-founder at Legal eCommerce start-up www.LegalWiz.in and runs an eCommerce strategy and analytics consultancy Hire4Higher Consulting. Shrijay is a true believer of people first philosophy, and largely credits his development to wide range of traveling opportunities he has gotten, both in professional and personal capacity.

Copyright Act gives you legal ownership of the content right at the time of creation of an original content without any registration being done. However, copyright registration is considered as a primary evidence in case of the work ownership is challenged in court. Other option available is to document your entire work and get it notarized. As copyright registration takes time for approval and work may need to be in commercial use prior to the approval, a notarized copy at least provides you a third party approval (who is a government trusted source) with date of notary as date of content creation.