Before starting a business there are a lot of matters to consider, most of which involve the legal issues and implications of running a legitimate business. Whether it is a small business or a company or conglomerate or a large corporation, no form of business can escape the legal implications of the law. Many people are not aware of the importance of sorting out legal matters before starting a business, such ignorance often leads to future problems and run-ins with the law once a business has commenced in-depth without first sorting out the key legal matters involved in starting a business. Here are 3 key legal matters one must first sort before operating a business:

1. Registration/Incorporation: The most important factor of registering a business is to secure the exclusivity and legitimacy of the business name or identity. Once a business is registered or incorporated, in the case of a company having shareholders, nobody else can legally use the exact same name as such business without facing the consequences of the law. Hence, it is very important to, first of all, register your business once you have decided on the name, structure and objectives of such business.
2. Acquiring licenses/permits to operate: Once a business has been registered the next legal matter to contemplate is acquiring the relevant licenses or permits to operate the kind of business in accordance with the relevant laws and regulatory bodies. To take for instance a person who is in the business of selling foods and edibles will need to first acquire the license or permit from the applicable government agency regulating the practice of such a business. If one does not acquire the applicable license/permit to operate chances are that such a person operating a business they are not permitted to operate will face run-ins with the law which could even lead to criminal liability.
3. Tax payment: Another important legal factor to immediately consider once a business is registered is the payment of taxes. Businesses and companies are usually taxed based on their registered capital, and tax evasion is a crime in most countries if not all. A person starting a business should register with the tax authorities and coordinate accounting procedures, to ensure compliance with all applicable tax laws.

 

Olatorera Consultancy Limited provides business development services to high net-worth individuals and companies looking to grow, enter or do business in Africa.