A business cannot function without business documents. Businesses are a roller-coaster ride of innumerable activities that sometimes might look daunting to a company. Having its legal, compliance, operational, functional and other frontiers clear will help a company establish future goals. While having established the milestone of setting the right infrastructure to thrive, companies should not eliminate the importance of structured documentation that supports the very backbone of any company.
A company needs to align its processes with necessary documentation as processes might suffer for lack of documentation. Bringing the right document to represent an agreement or the lack in maintaining records can delay processes, attract fines and sometimes even cancel a critical deal.
Some of the mandatory documents that are crucial for any company or business are listed here.
1. Partnership Agreement
A partnership agreement is a contract between two or more individuals starting a business entity has decided to share the profit and losses. The partnership agreement is a document that outlines the obligations, legal and operational, debt liability and profit-sharing as well as individual responsibilities of the parties involved.
2. By-laws for Corporations Corporate by-laws are created to define the company's purpose, responsibilities, shareholder obligations and rights, annual board meetings and schedule, the process of appointment and removal of directors. Corporation by-laws are also referred to as Corporate by-laws. The by-laws also indicate how laws can be amended and new laws can be incorporated
3. Co-founder Agreement
Co-founder agreement is prepared across more than one founder and highlights the rules and obligations and share of each of the partners. It also includes the company's goals, values, philosophies, and culture. Capital contributions, budgets and allocation can also be construed as a part of this agreement.
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4. Non-disclosure Employee Agreement
Companies need to share confidential information with their employees from time to time. This information is very critical to the company and if leaked could cost a fortune. Companies, therefore, ask employees handling confidential company information to sign a non-disclosure agreement. 5. ESOP
Employee stock option plans also known as ESOP is the company stocks offered by the company to its employees at a discounted price. ESOPs are provided to employees to retain them in the company for long. ESOPs agreement includes a number of shares allot
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