Few entrepreneurs set out to deliberately break the law as they launch their business and attempt to keep it afloat.
But each year, many firms still face serious punishment from regulators for everything from health and safety shortcomings to poor employee relations and irregular accounting.
If you’re making your first foray into business, keeping on top of every legal requirement can be daunting — so having the legal savvy to comply with the following three areas provides a solid start.
1. Company officers
If you’re starting a private limited company, The Companies Act 2006 requires you to appoint at least one director — the person who will manage your firm’s affairs according to the law and your articles of association.
The director must ensure that several important documents are submitted to Companies House — like annual accounts and returns, any notice of change of registered office or notice of change of secretaries or directors.
Failing to discharge these duties can result in a hefty fine, but studying Government advice on setting up a company will provide all of the basic guidance needed, including registering for corporation tax and PAYE if you’re employing staff.
Making these arrangements in advance of starting trading means everything’s above board and you can concentrate on capturing customers and generating profits.
2. Data protection
Data protection is a corporate hot potato in the information age and every public and private company is duty-bound to protect the personal data it processes or controls.
Cyber attacks often steal the headlines — but Information Commissioner’s Office (ICO) stats show that 74 percent of the £2 million paid in data breach fines in 2017 resulted from internal failings.
To ensure that your data protection policies and procedures adhere to the rules of the EU General Data Protection Regulation (GDPR) and UK Data Protection Act 2018 (DPA), contacting the ICO advice service for small organisations is a wise move.
Getting to grips with the fine detail of data protection compliance might seem arduous initially — but once all your staff are informed and engaged, you’ll appreciate the resultant peace of mind.
3. Commercial property
Commercial property transactions can sometimes be complex — there are different legal implications in leasing a new office space, renting retail premises, leasing industrial real estate or trading as a property developer.
If you receive inaccurate advice on negotiating and drafting leases and drafting tenancy agreements, you may find yourself tied to terms that put you at a pecuniary disadvantage for years to come.
Talking to property experts like Switalskis Solicitors ensures that you and to person you’re buying or leasing property from (or selling or renting to) can reach an amicable agreement that satisfies the business needs of both parties and complies with legal requirements.
With a niche lawyer on your side, you’ll be confident of achieving the best outcome for your company.
Following our suggestions for these three areas of legal compliance should arm your startup with the legal smarts required to survive and succeed.
Are you confident with corporate compliance? Share your thoughts in the comments section.
