Starting a new business is exciting, and it can be easy to get caught up in the more creative elements of your start up, instead of the legal requirements. However, the success of your business is dependent on getting off to the right start when it comes to legal matters. In this article, we look at the key things startup companies should consider in the first weeks and months of your start-up business.
It is important to consider the best way to structure your business; for example, should you operate as a sole trader or set up a company? How you choose to structure your organisation will have a huge impact on factors such as tax, your legal obligations, how your business is run, the risk you take on personally and how you draw income from the business.
If you have business partners, shareholders or others involved in your company, you must set out clearly the rights and obligations of each party, as well as how the business will be run. While you may have a great working relationship with others in your business, disputes are common, and you need to ensure your interests, and the interests of the business, are protected.
When you set up a new company, HMRC will become a major player in your operations. Therefore, it is essential you understand your tax obligations, deadlines and key dates for registration and filing. Your business must register for all applicable taxes such as VAT and corporation tax. You may wish to seek the advice of a solicitor or accountant to assist you.
No matter what your company does, protecting your intellectual property (IP) is important. The initial research you must carry out before taking steps to protect your IP can also save you money and time in the long run. For example, you must check that no other company offering similar products or services has a similar or identical name or logo. You can protect your company name, logo, content ideas and much, much more. It is important to seek the advice of an intellectual property lawyer to ensure that no one can copy or steal your work.
Certain types of businesses require special licences or authorisation to get started. You should research whether your business requires any permits, approval, licences or other to carry out its operations. If you find out that you need special approval, or are unsure, you should speak to a solicitor who will advise you.
Data protection is a serious matter in the UK, and the laws apply to all businesses. The UK regulator is the Information Commissioner’s Office (ICO), which can take enforcement action against companies that do not comply with data protection rules. Almost all companies must register with the ICO, and they have advice, information and checklists to help you get started with data protection and security compliance.
If you are employing people in your business, there are several steps you must go through to comply with the law. You will need to instruct a solicitor to draft contracts of employment, if you fail to provide an employee with a contract of employment, you could be in breach of the law. Such a contract must set out the duties, hours and rate of pay, among other matters. You should also have a grievance procedure should an employee wish to raise a grievance, as well as a formal disciplinary procedure should you have any problems with employees.
There are many rules and regulations to comply with when marketing your business. For example, if you have a website, you must have a comprehensive privacy policy. You should check that every step you take to promote your business is legally compliant and seek advice if you are unsure.
For specialist advice from our experienced corporate and commercial solicitors, contact us today.
IMD Corporate is a multi-national full-service law firm and a leading provider of legal services to international businesses throughout England and Wales. We are competitive on price, and the majority of our services can be undertaken on a fixed-fee basis, so costs are predictable and easy to budget for. For more information, please contact Olexandr Kyrychenko or Marcin Durlak on 0330 107 0106 or email business@imd.co.uk.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
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