It’s great that you thought of solving a problem and translating that solution into a business. The bright side is you get to have impact on others and get paid while at it. Awesome! The tricky bit is everything is still not quite simplified as it should be when it comes to legal stuff. Which is why I have outlined 3 of the many areas in your small business where you will most likely need the input of a lawyer.
- Business form, licensing, permits and approvals
Whereas governments in Africa are slowly moving towards improving the ease of doing business in the respective African countries, such ease relates to the procedural aspect of doing business. As a startup founder you’ll still need sober advice on any licensing or permit requirements for your business to ensure your profits do not end up offsetting penalties that could have been avoided. You should also bear in mind that different business entities or forms yield different legal obligations and potential exposure in terms of liability to the business owners or startup founder.
- Contracts and Compliance
Contracts are utilized everywhere in the business set up. From suppliers, to co-founders, shareholders, employees, independent-contractors, and even interns. Prevention is always better than cure. That is why it is important that your business gets it right every time you transact by way of contract so that you minimize and avoid potential legal risks and unnecessary conflict that could end up in litigation or ADR. Unless of course you have a huge safety net in your small business to cater for litigation and arbitration costs, then you can comfortably ignore this.
- Capital Raising, Financing and Tax Legal Advice
As previously mentioned, each business form yields different legal obligations and potential exposure in terms of liability to the business owners or startup founders. One such obligation is the tax liability. It follows that each business form has different tax advantages and disadvantages. Consequently, each business form is likely to experience different tax-legal issues. When it comes to capital raising and obtaining financing in your startup or business, it is always advisable that you conduct negotiations from a point of knowledge and information. At the very least, have your financing or capital raising documentation reviewed by a qualified lawyer.
In case you are curious about startup legal compliance and getting all the legal bases for your business covered in one simplified, actionable step without the pain of hiring a lawyer for 100 different things you need as a startup or a small business in Kenya, please click here learn more.