Preparation Important Contracts
Below is an overview of contracts that are often needed when starting a company.
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 startup, 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, working hours, 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 solid contract is essential.
The shareholders' agreement governs the relationship among the shareholders, especially the exit of a shareholder. An agreement on which shareholder gets to buy the respective shares and at what price should be regulated in the early stage of your startup. 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 Incorporation
The articles of incorporation govern the relationship among the members of a company. As with the shareholders’ agreement, it is important to determine what happens if a member leaves and how the company's value and shares are to be calculated.
Terms and Conditions
Terms and conditions are a pre-assembled contract that your clients need to acknowledge and agree to. They give you the upper hand in case of a dispute, but they must comply with certain standards to ensure their validity.
Declaration of Confidentiality
The declaration of confidentiality prevents the contractual parties them from disclosing confidential information to third parties. This contract is crucial to prevent important information from leaking to customers and competitors.
When drawing up a contract, it is important to consider your individual needs. For this reason, it is unwise to use standard contracts, as these do not offer sufficient legal protection and are easily challenged.
Courtesy of STARTUPS.CH – our partner for starting up your business