Introduction
If you didn't read our article on the Top 5 Mistakes When Registering a Company in Ireland, you should read that first.
While that article focused on the incorporation process itself, this follow on article will focus more on the steps to do immediately after incorporation (or within a few months of it in some cases).
We have, at this stage, experienced hundreds of companies incorporate in Ireland and we've noticed several post-incorporation issues that consistently catch new founders off guard.
They are issues that are equally important as the initial registration, yet they are (sometimes understandably) overlooked in the excitement of getting the business started.
Mistake 1: Neglecting Founder Agreements
This is one of the regular mistakes we see, and unfortunately, we often only hear about it when it's too late.
Most founders start their business journey with a lot of trust, assuming they'll never fall out with their co-founders. It's a nice thought but we have now witnessed enough instances where the lack of a founders' agreement has become article-worthy.
A well-drafted founders' agreement isn't just about planning for failure – it's about providing clarity and structure to your business relationship.
We've seen how crucial these agreements become when a founder wants to exit, whether due to personal circumstances or disagreements.
Without proper "good leaver/bad leaver" provisions, you might find yourself with a former co-founder retaining significant shareholding despite no longer contributing to the business.
If they held a high enough shareholding, then you might have to just scrap the company and start again.
Ask us for our Template Founders Agreement and time-box 2-3 hours for the founders to read it and sign it. It's super cheap and is nothing compared to the cost of a founder leaving at any stage.
Mistake 2: Overlooking Intellectual Property Rights
This is a particularly tricky area of Irish law that can catch out even experienced businesspeople.
Under Irish intellectual property law, the creator of IP owns it – not the person who paid for it*.
We've seen numerous cases where companies have paid thousands to a consultant or freelancer on Upwork for website development, software creation, or design work, only to discover they don't actually own what they paid for! True story!
The solution is straightforward but often overlooked: an IP Assignment Agreement.
These need to explicitly transfer all rights to your company. Even founders should sign these (unless there are IP transfer clauses in their founders agreement - our template agreement has you covered).
We've had to help several clients navigate expensive legal processes to secure IP rights retrospectively – something that could have been avoided with a simple agreement at the start.
It's really hard to track someone down and get them to sign something if they have already been paid.
The solution here is the same as the founders agreement, ask for our template and make anyone that does anything creative for your company sign it.
*Except in an employer - employee relationship.
