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Tips - May 27, 2022

Don’t Start Your Business without Knowing these Laws

The business world has laws that guide its operations. And you could be walking into a pit when you start a business without a clear understanding of these laws. 

These laws can either help or hurt a company’s growth. You want to be focused on building your business, not paying fines or dealing with lawsuits.

So if you are embarking on an entrepreneurial journey, don’t start your business without having these laws at your fingertips.

Tax Laws

Every business organisation pays taxes based on its location and revenue sources. Due to its importance, violations will affect the business’s future.

It varies from one country to another based on the government. And policy changes by the government can affect your business.

Therefore, an entrepreneur must be abreast of this law as a change in the rules governing a business means a change in business operations.

For instance, a rise in corporate taxes will result in an increase in expenses.

Intellectual Property Laws

Intellectual property laws protect a business’s patents and copyrights. It is one of the most significant legal concerns in the corporate world.

This is because breaking these laws can result in legal consequences. These intellectual properties include logos, domain names, business names, and symbols. 

If an entrepreneur uses another’s intellectual assets without legal permission, the owner can file copyright violation charges against the former.

On the other hand, the owner can assign the rights to a third party. This way, the new person becomes the copyright owner.

Interest rates

The interest rates on credit and loan facilities in a country are influenced and determined by monetary policy. An increase in interest rates equates to a rise in the cost of running a business.

This law affects businesses in two ways: the cost of running a business and obtaining loans increases, and customers spend less, resulting in lower sales for business owners.

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License

To legally own a business, you must first get a business license. It acts as a way of registering your firm, but it also functions as a means of gaining official recognition.

When applying for one, make sure you follow the rules for your locality and the sort of business you run. Licensing varies from one locale to another and vice-versa for business.

For instance, selling fuel, weapons, wine, and lottery tickets requires the possession of specific licenses. If you don’t have one, remember that it’s not too late to get one, and there is a repercussion for non-compliance.

Truth in Advertising

One of the laws to take note of is fake advertising. The government places such a high priority on honesty. 

When creating publicity for your business, be as truthful as possible. Manipulating advertisement is a crime that is punishable by the government. The government have little or no tolerance for such actions.

Consumer Protection Law

This law joins the business and the customer together. If an entrepreneur engages in dishonest interactions with a consumer, they are punishable by the law.

Consumers’ rights are protected under the following branches:

  • The Standard Weight and Measurement Act mandates that all commercially traded goods are weighed on standard scales.
  • The Consumer Credit Protection Act makes customers fully disclose product prices and loan interest rates.
  • The Sale of Goods Act guarantees that items are of high quality. If otherwise, customers have the right to take legal action.
  • The Trade Descriptions Act protects customers from being duped by businesses that provide incorrect information about the products.

Health and Safety Regulations

When a firm hires employees, it must guarantee that they are safe and have access to health care services. 

This law assists employees in pursuing legal action if the firm fails to offer adequate safety and health facilities.

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