How to set up a Startup

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Como constituir una startup

How to set up a Startup

Are wondering how to set up a Startup? Our startup lawyers can help you! To know the needs and problems that a Startup have to deal with, we will analyse and develop its different phases and stages through the life of these companies goes, with a potential growth and highlighted needs.

The different stages of a Startup

If you are planning on settiing up an startup is important that you get to know the different stages of a startups and its characteristics.

The different stages of a Startup are:

  1. Seed Stage
  2. Early Stage
  3. Growth Stage
  4. Expansion Stage
  5. Exit

Seed Stage

Also known as the stage of the “sketch”, we are on the initial stage: the conception of the idea or business and the development of a specific product or service.

In this first step we find, a team (usually small) without having any business model built or defined.

This is the stage in which an idea that, at first sight seems bright, is going to revolutionize the market. One of the greatest fears of entrepreneurs is that their idea is imitated or reproduced by third parties in the market, but most of them do not do nothing to protect the outcome of their ideas.

Early Stage

The product is already on the market with a clear business model designed. At this point, it is probably necessary to start contractual relationships with customers, suppliers, users … it is even possible that we subcontract some type of activity with a third party.

Any relationship with someone outside the company must be meticulously reflected through contracts where there is a confidentiality clause, since they will be sharing information that may be sensitive to our business, especially at such early stages as this and the previous one. In this way they will be protecting all information that can not be protected by registry, such as business secrets or know-how.

In summary, a good confidentiality agreement must gather the conditions of the transfer of confidential information, the permitted uses, how to safeguard the information, the return or destruction of the same, the possibility or impossibility of communicating it to third parties, and in case of do it, how to protect it when making such a shipment, etc. For all that, it is essential to have a team of experts who can analyse all these aspects in detail.

Growth Stage

The Startup is already built and established, it is time to grow. We are in a more or less consolidated position in the sector and stable profits. The products and services continue to improve and become more competitive.
In the case of a Startup, several services can be provided, for example, use of software, maintenance, updates, inefficiency management, applications … that is why at this point it is important to have a good model of the contracts of using licenses or service agreements with the possibility of being adapted to the specific case to have a higher customer acquisition capacity.

It is normal that in this stage, the creation of a website will be useful to promote the company and the services it provides. In addition, it would be necessary, to register a domain name, to establish the Legal Notice, Cookies Policy, Privacy Policy and the “pop-up” by which Internet users are notified of the use of cookies on the web.
It is essential to consider the strict need to comply with the applicable regulations on electronic commerce and privacy, in addition to keeping up to date with all the legislation that applies to these issues.

Expansion Stage

At a certain point, the company must take the leap, expand to other markets and segments. It is, therefore, a complex moment, because each step must be well measured and with a clear strategy. The risk of errors is higher.
the support of external financing is essential. It is the moment for attract the investors. For this, the structure of our company is very important in order to show strength to attract external capital.
It is important to determine the legal vision necessary for the exploitation of your project and we work together with the development of the commercial actions, such as: the constitution of a company, preparation and negotiation of the partners’ agreement, capital increases, etc.


After all the business process of the startup, it is the time to decide if the Startup is going to be sold or not. We are talking about the sale approach (exit). We speak in these cases of the acquisition by another company that sees in it an opportunity to grow or improve your product or service (in this case, the purchase can be by merger or keeping both brands and firms in an independent way in the market). For this it is necessary to set all types of assets, properties and all the conditions that have led to the transfer.
These are the five steps that are often repeated between successful projects and that usually happen in a short space of time. The most important thing to emphasize in the world of entrepreneurship is to complete each step with prudence and meeting all the requirements to take firm steps and not false.


In Letslaw, your legal advice takes into account the specific needs of entrepreneurs and ranges from the determination of the legal vision to the assistance of all the commercial actions of your startup.

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