• About Us
  • Write for Us
  • Paid Content Solutions
  • Contact Us
ExpertHub
  • HOME
  • LAUNCH
  • BUSINESS
  • LEADERSHIP
  • MONEY
  • SUCCESS
  • NEWS
    • All
    • Company Posts
    • ExpertHub Today
    Transunion Global Capability Centres Boom

    Global Capability Centres Boom As They Move Up The Value Chain

    Global Tech companies

    Global Tech Companies Are Turning To South Africa For Media And Marketing Expertise

    Innovation Summit

    Innovation Summit 2021 Showcases SA’s Top Tech Entrepreneurs

    Three customer experience strategies you’re missing-23Sep21

    Three Customer Experience Strategies You’re Missing

    Embracing digital 1st world, SMBs confid. to thrive-23Sep21

    Embracing A Digital-First World, SMBs Can Have The Confidence To Thrive

    SAB Foundation Calling All Entrepreneurs Tholoana Entps. Prog.

    Applications for SAB Foundation Are Now Open

    Trending Tags

    • About Us
      • Write for Us
      • Paid Content Services
      • Contact Us
    No Result
    View All Result
    • HOME
    • LAUNCH
    • BUSINESS
    • LEADERSHIP
    • MONEY
    • SUCCESS
    • NEWS
      • All
      • Company Posts
      • ExpertHub Today
      Transunion Global Capability Centres Boom

      Global Capability Centres Boom As They Move Up The Value Chain

      Global Tech companies

      Global Tech Companies Are Turning To South Africa For Media And Marketing Expertise

      Innovation Summit

      Innovation Summit 2021 Showcases SA’s Top Tech Entrepreneurs

      Three customer experience strategies you’re missing-23Sep21

      Three Customer Experience Strategies You’re Missing

      Embracing digital 1st world, SMBs confid. to thrive-23Sep21

      Embracing A Digital-First World, SMBs Can Have The Confidence To Thrive

      SAB Foundation Calling All Entrepreneurs Tholoana Entps. Prog.

      Applications for SAB Foundation Are Now Open

      Trending Tags

      • About Us
        • Write for Us
        • Paid Content Services
        • Contact Us
      No Result
      View All Result
      ExpertHub
      No Result
      View All Result
      Home LAUNCH Legal Resources Legal Assistance

      5 Legal Tips For Start-Ups

      Some of the greatest pitfalls that face start-ups, if not at the outset, then later down the track, arise from the failure to lay a proper legal foundation. These five tips should assist.

      Justine Krige by Justine Krige
      Jan 9, 2019
      in Legal Assistance, Start-up Advice
      230
      legal-tips-for-businesses
      Share on FacebookShare on TwitterShare on LinkedIn

      RelatedTopics

      Why Is Having A Business Phone Number So Important?

      Business Goals for Startups: What You Need to Know

      How to Start a Small Business in the UK in 2021

      Many highly successful start-ups are bedevilled by legal disputes, often between founders or funders, which could have been easily avoided. The story of McDonalds is one example. It was founded by brothers, Richard and Maurice McDonald, who were ultimately allegedly short-changed by Raymond Albert “Ray” Kroc, who joined the business after its establishment but took all the glory (and the money). How? Because they did not put legal agreements in place to regulate their partnership.

      It is understandable that entrepreneurs are focused on growing their businesses and not on legal matters. Who wants to worry about what might go wrong when one’s focus is on building a business or implementing a great idea? Quite apart from this, it is not exactly exciting (especially for your typical entrepreneur) spending time on matters such as contracts and company structures.

      1. Limit your liability

      It is critical to ring-fence the assets and liabilities of the business from those of the founders’ personal assets and liabilities. Put differently, take steps to protect your own assets in the event of your business failing. Establishing a limited liability private company is usually the quickest and most cost-effective way of doing this. This can be done by purchasing a “shelf company” (a company which has already been incorporated, but which has not yet commenced trading), or incorporating the company oneself through the offices of the Companies and Intellectual Property Commission.

      2. Agree on founding documents

      A shareholders’ agreement and memorandum of incorporation are foundational documents for any start-up. These documents set the “rules” and provide a structure for a company. They can be flexible and can be adapted as the business grows. As between shareholders in the business, a shareholders’ agreement regulates the parties’ rights and obligations and, by way of example, should cater for voting rights (how decisions are made) and eventualities such as where one shareholder wants to exit and sell his or her shares to a third-party.

      3. Negotiate and prepare clear contracts

      Start-ups need to be flexible to adapt and grow. However, whether your business renders services or sells goods, it is critical that the terms and conditions of its offering (which may change from time to time) are clearly communicated to consumers. If your business offers an online subscription service, the terms of the subscription offering should be presented to consumers and agreed to by them before rendering the service in question.

      In the case of the sale of goods, the terms and conditions of sale should be clearly explained, and you should ensure that they comply with consumer legislation such as the Consumer Protection Act. As regards suppliers, make sure you negotiate the best terms possible for your business, and make sure that your suppliers put those terms in writing.

      4. Ensure statutory compliance

      Keep records! One of the most common mistakes made by start-ups is the failure to maintain basic company secretarial and other statutory records. These are vital to ensure that your business complies with its tax obligations, with the requirements of the Companies and Intellectual Property Commission (such as filing annual returns) or ensuring that cross-border transactions are approved by the South African Reserve Bank.

      A failure to maintain proper records can also prove to be very costly if the business grows and wishes to obtain investment in the future. Most investors will want to conduct a due diligence on the business before investing any funds, and statutory compliance (or non-compliance) is a key consideration.

      5. Ask for help

      Don’t be penny wise, pound foolish. Engage the services of an accountant and attorney to assist with book keeping, tax returns and legal compliance. This will serve to avoid any penalties for non-compliance, late and incorrect statutory filings. It should, hopefully, also help to ensure that your start-up has a solid legal foundation from which to grow.

      Justine Krige

      Justine Krige

      Quick Links

      • Business Plan Advice
      • Business Plan Format Guide
      • Business Plan Format
      • Sample Business Plans

      NEWSLETTER SIGN-UP

      Sign-up for Weekly ExpertHub Updates

      * indicates required




      EXPERT INSIGHTS

      Startup Content Marketing: 3 Things To Do Right Now

      Startup Content Marketing: 3 Things To Do Right Now

      by Frank Hamilton

      Content marketing has become so popular that brands both big and small eagerly use it in almost every marketing campaign....

      Work Life Balance - Morning Mindset Practices

      Morning Mindset Practices Are Key To Maintaining Balance

      by Sheila Vaske

      Work / Life balance is a huge topic these days, and one that really needs some attention. I hear it...

      Must-Have Mindset for Business and Leadership Success

      Must-Have Mindset For Business and Leadership Success

      by Laura Di Franco

      Business and leadership success start with a discipline of mindset moves, including having fun with your fear.

      Improve Customer experience

      7 Methods Merchants Can Use To Transform the Customer Experience

      by Frank Hamilton

      How You Can Transform Your Customer Experience And Why It Is Important

      • HOME
      • LAUNCH
      • BUSINESS
      • LEADERSHIP
      • MONEY
      • SUCCESS
      • NEWS
      • About Us
        • Write for Us
        • Paid Content Services
        • Contact Us
      • About Us
      • Write for Us
      • Paid Content Services
      • Contact Us
      • Terms & Conditions
      • Data Privacy Policy
      • Privacy Policy
      • Sitemap

      Copyright © 2022 ExpertHub.info
      Revenue Growth Experts

      No Result
      View All Result
      • HOME
      • LAUNCH
      • BUSINESS
      • LEADERSHIP
      • MONEY
      • SUCCESS
      • NEWS
      • About Us
        • Write for Us
        • Paid Content Services
        • Contact Us

      Copyright © 2022 ExpertHub.info
      Revenue Growth Experts

      Login to your account below

      Forgotten Password?

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In