Defence start-ups and manufacturers work at a fast pace: prototype, testing, first deliveries, investor — all while the rules on defence procurement and exports change regularly. A mistake in the company structure or in a contract with a state customer can cost a contract or a stake in the business.
We help Defense Tech teams build their company structure, protect the rights to their developments, prepare for investment and conclude contracts with state customers. We know how the military system works from the inside and explain legal requirements in plain language — so that the team can focus on the product.
Typical legal issues
A structure that will not satisfy an investor
Founders’ shares without a shareholders’ agreement, rights to developments held by individuals, no transparent ownership structure — these are typical reasons why a deal with an investor drags on or falls through.
Rights to developments
Design documentation, software and inventions are often created by contractors or volunteers without the rights being formalised. The company risks having no legal grounds to use its own product.
Contracts with state customers
State contracts contain strict terms on deadlines, acceptance, warranties and penalties. It is important to understand your obligations before signing and to act correctly if a delay occurs.
The team and employee reservation
For defence companies, retaining key specialists is critical. The procedure for reserving employees from mobilisation and the supporting documents require care and regular review.
Export restrictions and cooperation with foreigners
Defence products are subject to state export control. Deals with foreign partners and investors must be checked with these restrictions in mind.
How we help
- We propose a company structure that takes into account plans for investment and cooperation with foreign partners.
- We prepare shareholders’ agreements between founders and documents for fundraising.
- We formalise rights to developments: contracts with contractors, engineers and software developers.
- We analyse draft contracts with state customers and support negotiations on their terms.
- We advise on employee reservation from mobilisation and military registration at the company.
- We handle disputes with counterparties and state customers over contract performance.
Frequently asked questions
Where should a defence start-up begin with its legal set-up?
Usually with three things: register a company with a transparent ownership structure, record the founders’ arrangements in a shareholders’ agreement and secure the rights to developments for the company. This is the foundation without which it is hard to talk to an investor or a state customer.
Can a contract with a state customer be reviewed before signing?
Yes, and it is worth doing. A lawyer will analyse the terms on deadlines, acceptance, warranty obligations and liability, explain the risks and suggest which terms can be negotiated.
Do you help with employee reservation?
Yes, we advise on the reservation procedure, check the company’s documents and help you act if issues with a Territorial Recruitment Centre (TCC/ТЦК) arise regarding employees. Reservation rules change often, so we assess the situation as of the date you contact us.