Before we talk about the importance of legal requirement in entrepreneurial process, we need to look at a few list of legal requirements expected to be taken into consideration when entering into a business
- YOUR BUSINESS STRUCTURE:
A business owner must decide which of the business structure best suits his or her business. A business can be structured as sole proprietorship, partnership, or limited liability company e.tc
Once you have selected the legal structure for your business you will need to register your company with corporate affairs commission and apply and get all d relevant licenses and approvals from relevant agencies depending on the nature of business you are into
- YOUR BUSINESS NAME:
Before choosing the name you must make sure it is available and not trademarked or used by another business, this is necessary to make sure you are infringing on someone else’s trademark which might lead to a lawsuit.
- INTELLECTUAL PROPERTY, CONFIDENTIALITY, NON-DISCLOSURE AND NON-COMPETE AGREEMENT:
Early one will have to disclose ideas to several people like potential investors or individuals or even share information with a consultant, it is crucial especially in the early days of the business to ensure that everyone who comes in contact with sensitive information understand that the information must not be decimated.
It is important you enter into confidentiality/non disclosure agreement with everyone you engage within your business.
It is also worth considerable time and money to ensure you get your copyrights, trademarks, patents legally registered so you do not have to stress about it later if the need arises.
- SHAREHOLDER/MEMBER/PARTNER/OTHER INVESTOR AGREEMENT:
This agreement is a key step in starting a new business to take care of conflicts that may arise in future.
Starting a new business can be intimidating and daunting task. Make sure not to overlook the importance of establishing your business correctly from the start. This will pay off in the end.
*As an entrepreneur it is very important you comply with the above listed requirements because by so doing you establishing the business on a right path.
* It creates trust i.e people you do business with will have confidence in you because they know the business is a legal one and not fraud.
*it also shows sign of seriousness as an entrepreneur
*It enables you access loans from banks or enjoy some of the government intervention funds
*It enables you also to bid for contracts from organization.
It takes care of unforeseen dispute, or risk that may arise in future