Important Contracts for Company Founders
When starting a company there are certain contracts that need to be signed. Here is an overview of the most important ones. We are happy to assist you and put together all the necessary contracts for your start-up.
Contracts regulate the behavior between two or more parties. Contracts determine what rights and obligations of the parties are involved in generic and special situations. Also it is specified, what happens when a party fails to fulfill their rights and obligations (legal consequence). Contracts should thereby be created individually and are considering the particular circumstances. Under contracts we also understand the terms and conditions - General Terms and Conditions.
Here we advise you, to use no patterns or templates from the Internet. The terms and conditions should be created individually for your business, so they also certainly has validity in a possible dispute. The following contracts are used frequently after a company foundation:
Contract of employment
If your newly founded company wants to employ staff, you need contracts of employment. Even if you are the only employee of your start-up, having a contract of employment is helpful (for AHV, IV, ALV etc.).
Contracts of employment are concluded between the employer and the employee and state the rights and duties of the respective parties (salary, workload, vacation etc.). Special conditions can be included such as a non-compete clause. In industries where employees have crucial information on customers or business secrets, having a thorough contract is essential.
The shareholders‘ agreement states the relationship among the shareholders, especially the exit of a shareholder. An agreement on which shareholder gets to buy the respective shares and to what price should be regulated in an early stage of your start-up. This will prevent the shares from falling into the wrong hands. It is also important to predetermine how the value of the company is to be calculated, thus establishing the price of a share.
Articles of association
The articles of association state the relationship among the members of a company. As with the shareholders’ agreement, it is important to determine the exit of a member as well as the calculation of company value and shares.
Terms and Conditions
Terms and Conditions are a pre-assembled contract that your clients need to approve of. They give you the upper hand in case of a clash, but need to accord to certain standards to assure validation.
Declaration of confidentiality
The declaration of confidentiality commits the opposing party to withhold confidential information from third parties. This contract is crucial to prevent important information from leaking to clients and competitors.
When drawing up a contract it is important to consider your individual necessities. For this reason it is unwise to use standard contracts, as these do not offer sufficient legal protection and are easily challenged.
We will be happy to draw up your personal contracts.