Many young and inexperienced entrepreneurs, who are establishing their first company, do not stop to consider the legal matters or do not have enough knowledge to recognize possible legal consequences of their decisions. This often leads to unforeseen problems, which could be easily avoided if the process of registering the company and all business activities were supervised by an expert in corporate law.
Check when you should consult your professional matters with a legal advisor and what are the most important legal constraints for your business activities.
Decisions on the business structure
The legal structure you choose for your type of business has a direct influence on the way your business is taxed and how all of the profits are distributed within the company. There is a difference between businesses run as partnerships, proprietorships (a business run or owned by one individual) or limited liability companiesand corporate businesses.
The former types of business are subject to income tax return, while the corporate companies are legal entities and have to pay the taxes by themselves.
Before you register your business think not only about your current situation, but also consider your plans for the future and choose the business structure, which suits your company best. Opening a company in Ukraine you most probably need to find a company which specialized on legal support of business activities there.
Licenses and regulations obligatory for your business
Before establishing a new business, learn as much as you can about the licenses and regulations, which are mandatory in your field of expertise. For example, if you plan to run a business, which provides any kind of medical services, you should be only hiring experts, who have the license to conduct the medical procedures. On the other hand, if you plan to run a manufacturing plant, you should be wary of regulations regarding the green house emission, utilization of sewage etc.
Some of these regulations and license requirements are commonly recognized, but in many cases the regulations are subject to legal interpretation and with a help of an experienced advisor you will be able to decide how to best apply the regulations.
Regardless of the type of business and the size of the company, most employers are at risk of breaching the labor laws, if they do not have enough background in this field. For example, every employee is subject to labor laws regarding the minimum wage and overtime payment (current minimum wage in Ukraine is 1218 UAH monthly or 7.3 UAH per hour), but these issues often slip the mind of less experienced employers.
Hiring a legal advisor helps you recognize the problems and prevent any breaches of the labor law.
Protecting intellectual property
Is your company specializing in design or in any other creative inventions? If it does, you should be particularly aware of the legal constraints regarding the unauthorized use of intellectual property.
Only if you understand what means you have at your disposal, you will be able to protect your products and inventions against unauthorized use. In a similar manner you should adhere to intellectual property laws when you are using the products and inventions of other companies, including your partners in business.
Marta Gromadzka is a writer and editor with a wide variety of experience, including writing for websites internationally and editing books on many different subjects and in a variety of formats.