It is illegal to discriminate against a person on the basis of skin colour, race or ethnic group. While you`re incredibly busy and there are many exciting things to focus on, it`s imperative to set aside time to make sure all legal obligations to start a business are met. To help you, we`ve explained the main requirements below. But there is another type of license that can often be overlooked, especially if you run a small business and have an unlimited list of other responsibilities you need to take care of yourself. There are different types of DBS checks that you can perform, each providing different levels of information. Thorough screening is required by law if the new employee occupies certain roles, such as with children or other vulnerable persons. If you have any questions or concerns about specific legal requirements, visit the official UK government website or contact a legal expert directly for assistance. Good luck with your new business! It is common knowledge that running a business that serves food or alcohol, such as a pub or restaurant, legally requires you to obtain a permit. The same goes for craftsmen such as gas engineers, who are legally required to be registered in the Gassafe register. This is mandatory for all companies with employees. This is to protect you from claims that an employee may make after an accident or illness they have suffered as a result of your work for you. This is the simplest option when there is more than one business owner and two or more people share the costs, risks, and responsibilities.
They do not need to have equal shares and everyone`s responsibility is proportional to their share. Most limited liability companies in the UK are limited to shares. Setting up the company as a limited liability company means that it is a separate legal entity that protects you financially, as the company`s finances are separate from your personal finances. For more information on choosing the right structure for your business, check out our article on structuring your new business. Some professional bodies may require members to have certain types of commercial insurance – for example, members of the Institute of Chartered Accountants of England and Wales (ICAEW) must have professional liability insurance. What you need to do to get started depends on your type of business, where you work, and hiring people to help you. It`s more complicated than becoming a sole proprietor, as you have to register the business with Companies House, file annual accounts and reports, and comply with their record-keeping requirements. in problems. If the name is too similar to other businesses, it may indicate that there is a connection between the companies, and you could be seen as an attempt to pass off your business as their business, thus taking away their activities. If they complain or file a trademark infringement complaint, you may have to change your business name, possibly pay damages, and spend more time and money reworking signs, stationery, advertising, etc. Industry regulators are constantly updating regulations and legal obligations – and keeping pace can be a real challenge for SMEs. Here are the key areas you need to focus on to ensure your small business complies with compliance rules and regulations.
Starting a new business is a busy time for an entrepreneur. You will develop a business plan, put your financial plan in order and eventually introduce investors or seek financing. One thing that can be overlooked, but is extremely important, is to ensure that all legal obligations are met. Otherwise, fines or possibly legal proceedings may be imposed. Once you`ve created your business, it`s important to protect it, just in case something goes wrong. E&O insurance is required by law for all businesses (unless you have no employees or only employ family members). It is designed to cover all compensation costs incurred if an employee is injured or ill in the workplace. Keeping track of a company`s legal obligations can be a job in itself. It`s rarely about learning them if you start and leave it at that. Since there are so many insurance policies to think about, it`s helpful to talk to a local insurance broker to check if you have the coverage you need. The Association of British Insurers (ABI) website has a section to help you choose the right insurance for your business. Our HR software makes it much easier for you to start your small business.
Some companies need a license from the local authority to operate legally. Some examples are hotels, hairdressers, street vendors, boarding huts and restaurants. If someone asked you what software your company uses, would you know the answer? And would you know if these are licensed versions? If not, it`s a good idea to find out. If you do not use licensed versions of the software your company relies on, you are breaking the law. It can also mean opening your business to cyberattacks. There are a few other legal requirements you need to consider when starting your startup, such as business insurance, tax obligations, and applying for financing. This guide should help you tackle the legal aspects of setting up a business in the UK, from choosing a name for your business from the beginning to hiring employees later. You can incorporate the relevant legal points into your traditional business plan, or even create a separate legal plan or checklist to make sure everything is covered. Poor trade compliance is simply not worth the risk. You must have appropriate internal controls in place to ensure that you comply with regulations regarding the operation of your business. Your company`s policies are usually extensions of the required legal requirements as well as additional company-specific policies. It can be anything that matters, like a clear office policy outside of office hours to protect data, or even just how employees should answer the phone.
Labor law: This ensures that every employee is protected by certain terms and conditions of employment, which is a legal obligation, and shows that you have the right policies in place: the main goal of compliance is to avoid criminal behavior or to detect quickly and respond appropriately. And while it can be a daunting task to make sure every aspect of your operation runs smoothly, if you`re running or starting a small business, it`s worth it. Compliance regulations have been put in place to protect you, your business, your employees and your property. The legal status you choose will determine whether you need to register your business with Companies House, the UK`s commercial register. Legal status also affects the records and accounts you must keep, the amount of taxes and social security (NI) you will pay, and your financial responsibility if the business goes bankrupt. Business Law: All documents that register your business, relate to lease and financial agreements, or protect your business, products and services: it is useful to have a lawyer to get advice at all times. If you`re starting and running a small business, you probably don`t often need a lawyer, but having phone support available is beneficial. Accepting cash payments makes it a little more difficult to track winnings and may require you to keep and download receipts. You can also manage this with your accounting software and add the information to your transactions on a monthly basis. Contrary to popular belief, these are not just companies with “employees” in the strict sense of the term. That`s why it tends to stay under the radar of many small business owners.
In general, most companies that have employees who work for – whether full-time employees or those who are more likely to hire occasionally – are required by law to purchase employer liability insurance. Developing in-house legal documents helps build trust in your business for the benefit of everyone – your customers, employees and potential investors. To check if your company name is already taken, you can search using the free business name verification tool provided by the UK government. It should also be noted that in the UK, workers pay NI contributions to qualify for certain government benefits and a state pension when they retire.