A startup is as a company at its initial stages in its business. When a startup is newly formed it often requires financing either through capital contribution from the company’s owners/ promoters or through investor financing, loan facilities and venture capitalists.

The formation of a startup company is pegged on two considerations namely; registration and incorporation.

  1. Term sheet- This is a nonbinding agreement between parties, having the basic terms and conditions of an investment. The nonbinding effect of a term sheet signifies the avoidance of legal formalities that arise when seeking investment prospects. Once parties have agreed to the terms of the term sheet, a legally binding agreement or contract is then drawn up.
  2. Shareholder Agreement- This agreement states the class and number of shares allocated to each shareholder.
  3. Share Subscription Agreement– This agreement is essential in the transfer of new shares to investors where they inject capital into the business. The company allots shares to them upon revaluation of their total issued share capital.
  4. Contractual Agreements- These are necessary where the startup is entering into obligations for various purposes such as service agreements for services to be rendered, supply agreements for supply of merchandise etc.
  5. Employment Contracts- These are necessary where the startup seeks to hire new staff.
  6. Tenancy Agreements- These are necessary where a startup is renting business premises. It would enter into tenancy agreements with the owner of the property either on a periodic tenancy basis or as a lease.
  7. Non- Competition Agreements- These agreements are also referred to as restrictive contracts. They are entered into between employers and employees where they prohibit employees from revealing trade secrets about the startup to competitors or other outsiders. It also forbids workers from themselves competing with their ex-employer for a certain period of time after leaving employment.
  8. Non- Disclosure Agreement- These agreements create a confidential relationship between an individual with sensitive or privileged information and an individual who will access such information.


How can we assist?

The success of a startup is pegged on how well it protects itself from loss and harm arising from contractual relationships. Such loss and harm is prevented or reduced by having the right contracts in place. At Netsheria International, we offer a wide scope of legal documents that can be tailored to meet the requirements for a startup. For more information, kindly visit our website at

Nuts & Bolts of Cloud Computing & Cyber Security in Kenya

November 20, 2023|0 Comments

Embark on a journey through Kenya's cloud and cybersecurity terrain. From the versatility of cloud services to the nuances of SaaS, IaaS, and PaaS, discover the digital frontier. Uncover the vital connection between cloud and cybersecurity, defending against phishing and malware. In a world of constant evolution, staying ahead in tech is not a choice but a necessity.

Cloud Computing & Cyber Security in Kenya

October 30, 2023|0 Comments

In the realm of technology, cloud computing takes center stage, delivering services like data storage and software through the internet. Learn about public, private, and hybrid clouds, and the three key types of cloud computing: SaaS, IaaS, and PaaS. However, with the convenience of the cloud comes the critical need for cybersecurity. Discover how to safeguard digital assets from threats like phishing, malware, eavesdropping, and DDoS attacks.

Professional Masquerading: Quack lawyer finally unmasked 

October 25, 2023|0 Comments

In a shocking revelation, an imposter known as 'Brian Mwenda' operated as a lawyer, winning multiple cases despite lacking legal qualifications. The Law Society of Kenya is now investigating this case, shedding light on the vulnerability of the legal system. Learn more about this alarming situation and its potential consequences.