When does your Startup need a Company Secretary or Legal Advisor?
Startups thrive on agility – moving fast, breaking things, iterating quickly. But as your business scales, structure and compliance become as critical as speed. That’s when legal and secretarial support move from “nice to have” to “business-critical”.
Yet, most founders wait too long. So here’s a guide to help you understand:
When exactly does your startup need a CS or legal advisor?
Stage 1: Idea to Incorporation
You probably don’t need a full-fledged advisor here. But what you do need is the right structure.
- Should you register as a Private Limited Company, LLP, or OPC?
- Are you planning foreign investment? (This changes the game under FEMA.)
- Who holds what %? Are your founder agreements clear?
At this stage, a short consultation can prevent long-term structural mistakes.
Stage 2: Early Traction & Team Building
Once you onboard co-founders, early hires, or advisors, documentation becomes vital:
- ESOPs, vesting agreements, NDAs, consulting contracts
- Basic board meeting minutes, resolutions, and ROC filings
- Registering under Shops & Establishments Act, GST, Startup India, etc.
We’ve seen startups lose key employees or equity because of handshake deals. Legal hygiene starts early.
Stage 3: Fundraising or Investor Discussions
This is the point where many founders scramble and regret not getting legal help earlier.
- Due diligence will flag every missing board meeting, improper filings, or lack of shareholder agreements.
- You’ll need to negotiate term sheets, convertible notes, SHA/SSA, and ensure FEMA/FDI compliance if it’s a foreign investor.
Pro tip: Investors take your legal hygiene seriously, it reflects how you run your company.
Stage 4: Scaling, Compliance & Growth
Now you’re a growing company. Your CS/legal advisor becomes your best ally in:
- Keeping the regulators away from issuing notices, through regular filings
- Managing board governance, resolutions, compliance registers
- Drafting/reviewing vendor, client, and employment contracts
- Complying with POSH, labour laws, data protection, and more
A Company Secretary or a Corporate Lawyer helps convert complexity into dashboards, so you can lead, not lag.
Stage 5: Cross-Border Operations, M&A or Exit
Thinking of expanding outside India, acquiring another startup, or selling your company?
At this stage, legal and secretarial functions go from support to deal enablers.
- Structuring cross-border investments under FEMA/ODI
- Managing legal due diligence
- Drafting or reviewing SPAs, JV agreements, or exit documents
So, When exactly should you start?
The moment your startup:
- Has more than 2 co-founders
- Onboards advisors or team members
- Thinks about fundraising or grants
- Wants to issue ESOPs
- Brings in a foreign investor
- Starts recurring compliance (ROC, GST, labour)
…that’s your cue.
How Bridgehouse helps?
At Bridgehouse Solutions, we act as the outsourced legal & CS team for startups, right from incorporation to exit. We handle:
- Secretarial compliances & ROC filings
- Drafting founder, investor & employee contracts
- Managing cap tables & ESOP schemes
- Ensuring fundraising is clean, compliant & investor-ready
- FEMA, FDI & cross-border structuring
- Dashboards, registers, and governance automation
Don’t wait for a term sheet or a penalty from departartment, to get your paperwork in place.
Let’s set you up for scale—the right way.
Need help figuring out when and how to start?
Click the ‘Get in Touch’ button or email/call us directly – we’re just a conversation away.
