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Legal Considerations You Need to Keep in Mind While Starting a Brand New Business

It is always exciting to start a new business. However, not doing it the right way can land you in trouble, especially in terms of legal matters. For this reason, you need to be aware of the necessary legal formalities for setting up a business. For instance, the first thing you need to do is register your business. Many people wrongly assume that registering a business is expensive and complicated in the UK. But, in reality, it is not so.

The Structure of Your Company

The structure of a company plays a vital role in its success as it expands in the future. In such a scenario, it is important to determine whether you want to trade through a company or in your own name. If it is a joint venture, you need to ensure you get a decent return. For that, a partnership agreement or a shareholders’ agreement is a must.

Your Company Premises

When selecting premises for your new business, it is imperative for you to be well-conversant with the terms of the lease. Can the rent be increased by the landlord and if yes, by how much? In case there is a change of use, will you require permission for planning? If you decide on running your business from your home, what restrictions will you face? You need to figure out the answers to these questions beforehand in order to avoid legal hassles later.


While choosing your company name, make sure it isn’t rude. Also, you cannot duplicate the company name of somebody else. Remember some words are not counted as a difference. For instance, X Limited and X UK Limited are considered to be the same.


You need to find out the available source of finance along with their legal implications. Should you take the step of mortgaging your family home? Are lenders compelling you to agree on unfair terms? Is it possible to get a better deal with your bank? All these issues need to be sorted out properly.


Of course, you have to pay your taxes in time. But, there are ways in which you can keep it to a minimum, without violating any tax laws. You can consult a solicitor right at the start of your business so that you can save on taxes and yet avoid any legal complications.

Direct Debit Management

The more prepared you are, the more successful you can get at your business. Therefore, it can be a good idea to sign up with a direct debit management company to ensure a smooth payment collection process from your clients. Direct debit for business can foster good relations with your clients, while keeping payment woes and associated legal problems at bay.


The nature of your business may be such that it exposes you to a number of risks pertaining to employees, premises, visitors and assets. In such a scenario, what would you do if your workers or products injure someone? Or someone is injured while being at work in your office? In order to escape from such hassles, you need to have proper insurance.

Goods and Services

If you trade in the purchase or sale of goods and services, you ought to be aware of your legal duties. What can be legally said by you in promotional materials and adverts? What contract terms are laid down by the law? What about product liability? You cannot afford to ignore these considerations.


It is a tricky area which is changing constantly. Majority of employment disagreements arise due to poorly-drafted dismissal procedures or service contracts that do not fulfil legal requirements. Get your procedures and contracts checked thoroughly to prevent such disagreements.

If you do not want to get involved in legal problems owing to your business, following the above steps is imperative before you begin the process of setting up your new business.

Peter Christopher

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