Published on June 7th, 2019 | by Sunit Nandi0
4 Important Legal Requirements Every Entrepreneur Should Know About Starting Up
When you’re starting a business, there’s a lot of things to think about and plan for. With so much to do, it’s easy to forget some of the most important aspects of starting up a company, such as the legal side.
Every entrepreneur needs to have a good understanding of the legal requirements start-ups need to consider. So, to help, below you’ll discover just 4 important legal requirements you should be aware of.
1. Understanding current business laws
Before you start up your business, it’s really important to be aware of current South African business laws. If you fail to follow them, you could end up at the very least, facing a significantly high fine.
There are a lot of laws to be aware of, and one of the first you’ll need to research is registering your business. You can register your company under a lot of different business types. So, understanding the different types of business structures is important.
2. Business licenses
Many types of businesses require a license before they can start trading. Therefore, it’s a good idea to contact your local authorities to see whether you will need a license and how you can apply for one. If you’re a foreigner starting up a business in the country, you’ll also need to employ at least 5 local citizens.
3. Advertising and marketing law
These days, a lot of advertising and marketing is done online. However, the problem with this is, the rules have recently been changing in terms of how you can market your business. Specifically, data collection can be a problem, though it’s required for effective advertising and marketing. So, if you want to make sure you’re not breaking any laws, you’re going to need to familiarise yourself with the latest marketing regulations.
Seeking professional advice from a company such as RSM, can help you to ensure you’re adhering to all local laws. This I a particularly useful service for foreigners who are considering setting up here.
4. Intellectual property
If your business is going to be selling unique products, you’re going to need to know all there is to know about intellectual property. This includes patents, copyright and trademarks, ensuring nobody else can steal your ideas. So, if you’re an entrepreneur who likes to invent things, this is definitely something you’re going to need to study.
These are just a small selection of the legal requirements you’ll need to know when setting up a business. It’s crucial you seek the right help and advice in order to ensure you’re following these complex laws correctly. Failing to research the legal side of starting a business could see you lose your business before it’s even got off the ground.