Legalities of Starting a Business

The several aspects of business are protected by law for the sake of the entrepreneurs and its customers.

These laws must be followed; otherwise, the violator will be sentenced to imprisonment or any other penalties.

Any business is enveloped with legalities to make it licensed and recognized by all agencies, especially the government of any country worldwide. If your business is registered and licensed, it carries with it a good reputation that may be recommendable to all of your prospective clients. All customers want to transact with a business company that is legally established in the country. And so, what are those legalities of starting a business that needs to be considered all the time.

You are not allowed by the law to register your business in a fictitious name. If you are the owner and operator of the business, then your name and information will be detailed on the registration of your business. Officials have their way of tracing whether your registered name and account is fraudulent. That is why it is not wise for you to fake your name because it could illicit malicious impressions against you even if you do not intentionally do it. I understand that maybe you just want to have a low profile ownership of the business, but it is still against the law when you provide wrong information in transactions such as this.

Next, in every state, region, country, and continent there are implemented laws regarding the size of your retail location. That is why you must still refer to your state, region, country offices that cater for business legalities. They will provide you with the specifications on which areas you are only allowed to build a business infrastructure. For example, in a subdivision, you cannot just build your home-based preschool learning center without asking for permission from the subdivision owners, officials, and other people concerned in the local government or municipality. Once they let you off with a building permit that is the only time you would be authorized to set up your business. In areas like in Germany, you do not expand your location only upon your own volition. It is stated in their rules there that you cannot develop your house or building horizontally or vertically without any permission from the concerned officials. There are also rules there that you can only open your store up to a certain time. And if you exceed the time frame, then you will be fined by the government.

You must also properly declare your taxes. You will be sued for tax evasion if you do not pay your taxes regularly or if you falsify the declared taxes under your business which is controlled by your declared income.

Also, you must abide by the proper compensation, rights, benefits, and privileges of your employees. You must regularly pay them with the right amount as agreed in the contract. Their salary must include insurance and other health benefits for the employee and his family. If you have violated the law protecting the employees against employers who do not pay their workers, then your business might be suspended or closed as you have the great chance of being detained in jail for some time aside from paying your employees big time.

There are also laws regarding property rights. It is relevant when you steal the product or service line from another company without any permission or payment. That offense may be punishable by imprisonment. That is why you should just start up with your own conceptualized products and services to avoid any lawsuit.

There are still numerous legalities in starting a business. If you still want to learn more about them, you‘ll just refer to a lawyer who can lay down all the important legal points you must consider to have a smooth flowing business transactions.


  • jose said on March 7, 2012
    I am planning to start a trading business in kerala, could u please tell me the procedures of getting a license and all other formalities to operate a company. regards, jose
  • T mokomela said on January 7, 2015
    I am law student in South Africa Thank very much


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