Legal Advice For Startups: An Interview with Bhargav Valiya



Constantly, there are new ideas that will be implemented. The possibilities are seemingly endless. And then there’s the legal situation. Any idea probably also attracts a rat tail legal questions about themselves. Those who are familiar or obsolete legal help is a clear advantage. How startups can avoid falling into legal traps, explains Bhargav Valiya in conversation with His legal specialty is start-up law. In this interview he advises others on Dynamic Perspectives.


What subjects lead startups repeatedly to legal problems?

Common topics related to the own website of companies are about the Legal obligations according to 5 E-Commerce Law (ECG) and after the Media Law. Accordingly, the companies are required to disclose material information about the company. The ECG provides additional information requirements in the event that contracts are completed online. When the benefits offered consumers the provisions of the Consumer Protection Act (Consumer Protection Act) on contract concluded at a distance are also observed. Failure to comply with legal requirements and administrative sanctions threaten to extend the deadline for the withdrawal from the contract of the consumer.


Where are the risks in Startup Marketing?

It is often not considered by the company, that the sending of commercial email or SMS advertising is not allowed as well as telemarketing calls without obtaining the prior consent of the addressee. The Telecommunications Act provides for massive administrative penalties for violations of its provisions.

With the use of social media as an advertising platform in addition to the above legal framework and the guidelines or Terms and conditions of the social media operator must be followed.


Privacy is a much discussed topic in this context. What startups have to watch from a legal perspective?

The data protection law aims to ensure the confidentiality of personal data and is an especially small and SMEs often neglected area. All business process data, particularly from employees, customers, prospects, etc. The Data Protection Act stipulates the principle that data applications the data protection authority must be reported before it can be started with the data processing. This is the case even for a simple “Excel”. However, there is of this fundamental duty to report numerous exceptions – for example, for typical data applications such as accounting and logistics, personnel management, customer service. But still it is often the case that the exceptions to the facts or the application data are then not yet applicable, because deviating from the conditions for the applicability of the exception. Particular caution is always advised when sensitive data or criminally relevant data to be processed. Sensitive data about data on political opinion, racial or ethnic origin, religious or political beliefs, trade union membership, health or sex life. In these cases, the processing of data should be taken only after a preliminary review by the Data Protection Commission, which may take at least several months. Breaches of the Data Protection Act are also threatened with administrative punishment. It is certainly highly recommend any company to undergo the intended use of data in advance of a more detailed examination.


They have years of experience at handling legal startups.In this Interview, Can you tell us one of your most important legal advice for startups?

Startups should create an accurate profile of their planned business activity. Depending on the area in which the company operates, there are – in addition to general requirements that apply to all companies – different legal conditions that must be met. In case of doubt, a lawyer should be consulted, as the costs in the case of rights violations will significantly exceed the cost of the “preventative” legal advice generally.


What improvements or changes will be in the near future in the Startup right?

In the areas mentioned above, no relevant changes are expected in the near future. The Securities Laws (Amendment) Ordinance 2013, has recently brought significant relief for the establishment of a limited liability company. In particular, the lowering of the share capital of Rs.1,00,000  and reducing organizational expenses. For capital-intensive startups that will have no significant impact, however. In exchange, but also a commitment request of the majority shareholder (> 50%) was for the opening of insolvency proceedings provided if the corporation has no organs being representative.


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