Contents
Prevention Is Better Than Cure
Law Firm Retainership is the smart choice for businesses, embracing the principle that prevention is better than cure by offering proactive legal support to avoid future disputes and challenges.
This saying is pertinent to businesses taking legal help on regular basis. Consequently, businesses are able to address any problems before they arise, conserve resources and primarily, not be vulnerable. Businesses are fruits of hard work and they better be protected rather than focussing on repair or dealing with consequences.
Managing business in the current scenario is a multidimensional task. There is a much greater need for practical and formal knowledge than ever before. Knowledge of management, legal regulations, finance, human resource and many more is crucial to achieve progress in the business and above all, as entrepreneurs. With businesses becoming diverse and interconnected, operating in varied environments without legal help creates confusion and instability. Obtaining legal help is a key to this situation since it contributes to achieving progress and stability along with a safe operating environment.
Retainership – Best Bet
Businesses need right people and advice to achieve their goals while operating in a safety net. Legal retainership is the best bet and a prime choice for businesses. Legal retainership is retaining a legal help for a fixed time frame and for a fixed sum. This way businesses have someone to hold on to as and when the need arises for legal questions and assistance.
In other words, paying for a legal help’s time in advance for any assistance that may arise in the near future. However, it is to be noted that the nature of services is usually pre decided between the parties.
Businesses vision to grow and legal issues create hurdles for them. Legal issues take a toll on resources and affect business prospects. Consultation and getting expert advice is necessary. But usually the search for solution starts only when the problem arises.
Businesses should focus on preventing problems so that they can concentrate on their mission and vision. Retaining a law firm is the answer to the aforesaid.
Why Law Firm Retainership?
Businesses are no more traditional and have undergone revolutionary change. They are looking for legal help that is dynamic, knowledgeable, proficient, committed, tech friendly and cost effective.
Before diving into the need for retainership, let us have a look at the following instances.
- In last 3 years, 1.28 lac companies in India have been struck off by the Ministry of Corporate Affairs for non-compliance issues pertaining failure to file financial information and/or annual returns for last 2 years.
- Indian government is serious and has supported SEBI which is probing into any kind of irregularities that might have occurred in the share allotment made in the year 2000 by Reliance Industries Limited for alleged routing of funds.
These instances are an indication that failure to comply legally is viewed seriously and even big corporates are not barred from it.
Indian legal system has made several changes over a period such as introduction of compliances, new acts and regulations thereto. SEBI has taken steps to promote corporate governance and undertaken reforms in public interest. This leads to growth in the legal services market in India. The following table shows the projected growth in the legal market in India as compared to other countries from the year 2022 to 2032.
Fig.1. Source: https://www.futuremarketinsights.com/reports/legal-services-market
Such a growth rate is indicative of the increase in the demand for legal services in the country. But keeping a track of these legal changes and its implementation is tedious without having a law firm retainer for medium to small businesses.
Understanding The Facets Of Law Firm Retainership
With business being at the centre, legal retainership provides timely advice and effective guidance before issues arise. They also provide proactive legal support in urgent situations. Further, considerable association with the business grants them familiarity and the law firm bonds well with the organization. They tend to know what the business needs and can help organizations strategize accordingly. Their association being pre decided, proves cost effective to businesses. In addition, legal firms deal with varied matters which makes them well equipped to deal with unforeseen situations and complex problems.
Law firm retainership helps businesses to overcome problems pertaining to hiring different experts for different problems. Legal firm retainership serves as a one stop destination due to their rich diversified experience in dealing with various matters. Every penny paid for retainership is utilized effectively and businesses can focus in diverting their valuable resources towards their growth and progress. In consequence, increasing profits and avoiding losses. Businesses can also avoid any litigations or legal hurdles since they will be pre equipped with effective solutions should the need arise in future. Continued association develops trust. They help businesses overcome the problems pertaining to paper work and provide assets protection including intellectual property rights.
What Businesses Should Consider Before Hiring a Retainer?
Law Firm Retainership – A First Aid Box for Businesses
A first aid box as we all know provides immediate care and protection when someone needs, so does a law firm retainership. The following table helps us to gain an insight into the same.
| First Aid Box | Law Firm Retainership |
| It consists of supplies and equipment for treating injuries and medical emergencies | The law firm consists of professionals with varied expertise to treat legal issues that arise in the economic environment |
| It protects the patient from further harm and injury by providing timely treatment | Guidance from the law firm serves a similar purpose wherein it protects businesses by providing timely advice in case of confusion and conflict |
| It relieves pain and grants relief to the patient | Legal guidance helps businesses from getting trapped in legal problems. It relieves pain and suffering i.e. fines, penalties and litigations which the businesses may face in the future due regulatory incompliance |
| First aid varies with the problems the patient faces | Legal help and guidance will also vary with the issues faced by the business |
| Saving the patient is the prime goal of first aid | Saving the business from legal downfalls is the prime goal of a law firm retainership |
| It paves the way for patient welfare by taking decisive and firm actions | Legal retainership helps businesses work swiftly with decisive solutions and on time when it matters the most |
To infer, increasing business complexities and dynamic operational environment, emphasizes the need for legal retainership. They provide stability and timely advice in dire circumstances. Law firm retainership is a preventive service for business wherein they are practicing risk management in a proactive manner. It is like promoting health and wellbeing of the business. Through effective legal guidance businesses are practicing crisis management and loss prevention. It is important to consider the fact that every business is unique and so are their problems. Law firm retainership serves as a cost effective way of obtaining personalized services. This delivers a confident, affirmative and broader impact on the business.
Aanand Nirmal & Associates offers specialized legal retainership services designed for banks, corporations, high-net-worth individuals, Trusts, Public Trusts, tech firms, fintech, and startups. Our continuous advisory covers all legal aspects, from regulatory compliance to resolving disputes. We help you manage complex legal challenges smoothly, ensuring your business stays protected. Partner with us, to get proactive, budget-friendly legal support tailored to your needs, keeping your interests secure and your operations efficient. This handholding helps the client to streamline their all activities within four corners of law.
References
Striking off company names by the MCA – https://economictimes.indiatimes.com/news/india/1-28-lakh-companies-struck-off-from-records-for-non-compliance-govt/articleshow/97655442.cms?from=mdr
Probe into the irregularities, if any, of share allotment made in the year 2000 by RIL – https://www.business-standard.com/article/companies/sebi-well-within-rights-to-act-against-ril-mca-109122300176_1.html
Corporate governance and public interest reforms undertaken by SEBI – https://www.indiatoday.in/business/story/sebi-meeting-new-reforms-empower-shareholders-investors-better-corporate-governance-2353476-2023-03-30