Startups and small-to-medium enterprises (SMEs) are often driven by speed, innovation, and limited resources. Founders focus on product development, sales, fundraising, and market entry—while legal matters are frequently pushed to the background. Many businesses only contact a lawyer when a dispute arises or when they are required to submit documents to authorities.
However, in reality, legal risks do not appear suddenly. They build up quietly through contracts, labor management, licensing, compliance, and daily business decisions. For startups and SMEs in Vietnam, the question is no longer whether legal support is needed, but when and how to engage it effectively.
This article explores whether startups and SMEs should hire an ongoing legal consultant, the risks of operating without one, and why more growing businesses are choosing regular legal advisory services instead of one-off legal assistance.
Many startups and SMEs believe they are “too small” to need regular legal support. As a result, they often make similar mistakes:
Using contract templates downloaded online without legal review
Operating beyond licensed business scopes without realizing it
Signing unfavorable agreements with partners or investors
Improperly handling employee contracts and terminations
Missing reporting or compliance obligations
Responding incorrectly to inspections or official requests
These issues rarely cause immediate problems. Instead, they become serious legal and financial risks when disputes arise, inspections occur, or the business tries to scale or raise capital.
An ongoing legal consultancy service is a long-term legal support arrangement where a lawyer or law firm advises a business on a regular basis—usually monthly or annually.
Rather than waiting for problems to occur, the legal consultant becomes familiar with the business model, operations, and risk profile. Legal advice is provided continuously, covering daily operations as well as strategic decisions.
For startups and SMEs, this service functions as an outsourced legal department, without the cost of hiring a full-time in-house lawyer.
Many startups only seek legal help for specific events such as incorporation, fundraising, or disputes. While this may appear cost-effective at first, it often leads to higher costs later.
One-off legal services are typically:
Reactive rather than preventive
Limited to a single issue
Based on incomplete understanding of the business
Without ongoing oversight, legal risks accumulate unnoticed. By the time a lawyer is consulted, the options are often limited and expensive.
Ongoing legal consultancy shifts legal support from damage control to risk prevention.
Startups and SMEs make decisions every day that carry legal implications—pricing models, partnerships, marketing activities, or operational changes.
An ongoing legal consultant helps founders and managers answer questions such as:
Is this business model legally compliant?
Do we need a license for this activity?
Can we structure this transaction differently to reduce risk?
Having legal advice available at the decision-making stage significantly reduces compliance issues later.
Contracts are essential for startups and SMEs, but also one of the most common sources of disputes.
An ongoing legal consultant:
Drafts and reviews commercial contracts
Identifies legal and financial risks in contract terms
Ensures enforceability under Vietnamese law
Supports negotiations with partners, suppliers, and clients
This is especially important for startups entering long-term or cross-border agreements.
Labor law violations are among the most common reasons businesses are fined in Vietnam.
An ongoing legal consultant helps startups and SMEs:
Draft compliant employment contracts
Structure salaries, bonuses, and working hours correctly
Handle probation, termination, and disciplinary matters lawfully
Comply with social insurance obligations
Proactive labor compliance reduces disputes and protects both employers and employees.
As startups grow, they often expand services or adjust business models—sometimes without updating licenses or registrations.
An ongoing legal consultant ensures:
Business activities align with registered business lines
License amendments are made when required
Corporate documents remain up to date
Compliance is maintained during restructuring or expansion
This is particularly critical for SMEs planning to scale or attract investors.
One of the biggest advantages of ongoing legal consultancy is early risk detection.
Because the legal consultant understands the business, they can:
Identify potential compliance issues early
Warn management before risks escalate
Suggest legally safer alternatives
Help businesses adapt to new regulations
This proactive approach saves time, money, and management effort.
For most startups and SMEs, hiring a full-time in-house lawyer is not cost-effective. It involves salary, benefits, onboarding, and management costs—often exceeding what the business actually needs.
Ongoing legal consultancy offers a flexible alternative:
Access to experienced lawyers
Predictable legal costs
No HR or management burden
Scalable support as the business grows
This makes it an ideal solution for growing companies with evolving legal needs.
Startups and SMEs should seriously consider ongoing legal consultancy when:
They are signing contracts regularly
They have employees or freelancers
They operate in regulated industries
They plan to scale, raise capital, or restructure
They want to reduce compliance and dispute risks
In practice, the earlier legal support is engaged, the lower the long-term risk and cost.
DEDICA provides ongoing legal consultancy services tailored to the needs of startups and SMEs operating in Vietnam.
DEDICA supports clients by:
Providing regular legal advice aligned with business operations
Reviewing contracts and transactions proactively
Supporting labor, corporate, and licensing compliance
Monitoring legal changes affecting startups and SMEs
Acting as an outsourced legal department for growing businesses
DEDICA’s approach is practical, cost-effective, and growth-oriented, helping startups and SMEs build a strong legal foundation without slowing down innovation.
Startups and SMEs may not need a full-time lawyer—but they do need ongoing legal support. Operating without regular legal guidance exposes businesses to hidden risks that can threaten growth, investment opportunities, and long-term success.
An ongoing legal consultant helps startups and SMEs stay compliant, prevent disputes, and make informed decisions, all at a predictable cost.
📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)
🕒 Working Hours: Monday – Friday (8:30 – 18:00)
Contact us today for a free initial consultation with our experienced lawyers!
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