Starting A Legally Binding Business: The Requirements

It is in the nature of every human to desire to be his or her own boss. No man wishes to be a messenger to another or to sweat day and night for the ultimate gain of another man. Every man think about starting his own business and work towards bringing the thought to realization. But the idea will not in itself vote to fruition unless the first step is taken to facilitate it’s metamorphosis from an idea to an actual implementation. The purpose of this article is to inform and educate about the legal requirements involved in starting up a business.

Types of Business

In starting a business the first thing that should readily  come to mind is what type of business do I intend to venture into? Is it a sole proprietorship, a partnership or a registered company.
It is pertinent to have a clearer understanding of the business kinds to enable one to have a proper knowledge of the dos and don’ts of the business desired
A sole proprietorship as the name implies is a business owned by a single individual. He bears the risks of the business and has all the profit. If the business falter so does he and the success of the business is his success. Partnership is an association of two or more persons that carries on business with the aim of making profit while a registered company on the other hand is a business organization registered under the Corporate Affairs Commission. A sole trader or partnership requires no formalities in its running while a registered company must meet the formalities before starting the business

Nature of the Business

After ascertaining the type of business you should have a mind to mind discussion with your partner as regards the object or goal of the business, the amount to be contributed by each partner to fund the capital for the business, an adequate location for the business. The partners should ensure that the location of the business gives room for quality accessibility to the intending customers. There should be a proper marketing/advertising of the business which is the way the goods gets to the final consumers over a geographical market.

Business Name

It is not enough to just start up by picking up a name for the business because it sounds good or seems perfect. The name must be importantly legal in the sense that such name should not be identical or nearly in resemblance with that by which a company in existence is already registered nor should it violate an existing trademark unless where the consent of the owner of the trademark has been obtained. To prevent this such name should be registered at the Corporate Affairs Commission.

Formation of Company

A lot of people err when they erroneously believe that they can by themselves form a company because there are certain implications which are hidden from them but known to lawyers by their training. The best bet is to seek the professional advice of a lawyer for adequate legal guidance. This is because the process of incorporating a company requires certain steps which demand strict adherence of which are ascertaining the particulars of the proposed company, preparation of the incorporation documents, filling of incorporation documents and registration of the company.

Taxes Payable

The business owner must take cognizance of the regulations governing taxes and should pay taxes as at when due to avoid violation

Establishing a business from the scratch may pose a very difficult problem but with determination and steadfast, it will eventually become successful. With that in mind there should be a division of labour: the lawyer takes care of the legal requirements and you deal with the running of the business.

I strongly believe this piece will be of great help to you. I f you experience any problem you can put your queries in the comment box below.
Finally, don’t forget to share it with your friends.

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