There are a lot of start-up companies that could be created from scratch, or there could be subsidiaries of foreign companies that are just starting up in India. Now what happens to them is an entrepreneur thinks I should have a Local Lawyer who can take care of everything and I can offer him equity or I could hire a general counsel to do all the legal work including managing company secretaries, handling all secretarial work, compliance and account management.
Now an entrepreneur thinks that this would be a sustainable solution. A lot of times what happen is that it looks like the ideal solution for the entrepreneur but it is not ideal because Lawyers don’t think of it, like that Company secretary or a Chartered Accountant may also not think of attaching himself or herself permanently to a specific business. How did you think of? These are professionals and they did see professional growth in the form of building their own Law firm. If they move in house, they want to move in house into a big corporate group where there is a team so they want to move in with a team of 2 or 3 people. It is very hard to move in as the sole person in a young company and establish everything. It looks like, he might possibly because that’s how an entrepreneur’s mindset is but a Lawyer or Company Secretary, he or a she has an entrepreneurial mindset but it’s with respect to building their own firm or going into a well established big company. They may not have the mindset of setting up legal operations for your company in exchange for equity. These arrangements have seen often don’t work as a big slowdown because the Lawyer is not incentive enough to do this kind of work.
Now here, there is a big opportunity for business advisers. People who are actually have an understanding of commerce & business and they want to move in the company as a core business person, so they might not have had the founders vision to start off with but the business adviser is going to be a key person in the growth of the company, he/she is going to be the person from whom who is executing the entire strategic vision dealing with Lawyers, Accountants, and Company Secretaries. By the way, it is a big challenge for any entrepreneur to keep the accounts, secretarial compliance and Law integrated aligned together. In a large company, there are lots of disparities and discrepancies. Something is written in one way. Legal paperwork, what paperwork is missing, another way in accounts and secretary compliance is that in a different way now, the only way to solve this is have an entrepreneur personally investing time into doing this and an entrepreneur doesn’t want to do this not that he is incapable of it but he wants to spend time actually growing the business which is where the need of a commercial adviser comes up as the Commercial Adviser. He/she will be advising your Entrepreneur on lots of things. For example: India Entry Strategy of Europe – subsidiary of foreign company, then issues like how to transfer funds to India?, which bank accounts to be opened in India?, the business structure to be selected for India, how the director is to be appointed, the taxation of the company in India with taxation of the director personally. Then there are lots of local licenses and registrations if there’s an office in the shops and establishments Act, there are GST, Income Tax, PAN and registrations, working with the employees, employment agreements, key employment, ESOW plans, intellectual property strategy and figuring out any internet related aspects.
Researchers have already shown that Lawyers are more interesting providing a legal service and an overall risk management related approach to law is not there risk management as a field has been there in other areas let’s say, like insurance but not in terms of legal tools. Now as a business advisor, he/she can have this risk management related approach. He/she can identify loopholes in contracts, he/she can de-risk them commercially, he/she can create standardized processes, he/she can put in a compliance management framework, and he/she can put in a contract management framework. All this actually really simplifies the automotive business and guess what that actually justifies the equity or getting at is you have an entrepreneurial mindset. You will want to scale this business up over time and you will be surprised at how much more responsibility, you take away from the entrepreneur who is deciding to engage you and it’s far more than what a Company Secretary or a Lawyer can do and for this reason, for business advisers something like a Diploma in entrepreneurship administration and business laws is really an amazing tool to simplify business processes, you will learn in addition to all the compliance contracts for an exchange, you will also learn about basics about contract drafting and dispute resolutions how to manage disputes with different kinds of parties to the contract.