The terms “legal” and “regulatory” could sound scary to the average business owner, who is simply concerned with developing a beautiful business idea; and publicity to increase consumers. However, it cannot be overlooked and the importance cannot be overemphasised.

The legal matters involved in starting a business are as important as the business itself. It is best to go about things the right way. No one wants to find out later that their intriguing business name has already been registered by someone else, or that they owe the government a huge sum. Here are the basics you need to know and do, as a start-up owner.

*Intellectual Property

This simply covers all the creations of the mind, intangible intellect such as ideas, brand logo, artistic work, images, designs, inventions, etc. In three words, these are Patent, Copyright and Trademarks.

In this regard, an entrepreneur has to obtain a patent, copyright documents to cover the company name and assets. It is also important to register the trademark of the company, which encompasses the brand of the company. These will protect the business and contents, and avoid infringement claims by other parties.

What is yours is yours. Make sure you protect it rightfully.

*Licenses and Registration

Keep your unique business name and save yourself some issues by registering under the Corporate Affairs Commission. Apparently, you do not necessarily require the services of a legal practitioner to get this done. Ensure you obtain the proper license to run the business. Also, depending on the kind of enterprise you run, you may also need a permit.

*Taxes

SMEs serve as an important and profitable aspect of every economy; and contribute as taxpayers to the appropriate organisations. It is important to remit taxes to avoid penalties and fines from relevant authorities. Some of these include Company Income Tax, Value Added Tax (VAT), Education Tax. You can decide on a tax advisor or financial expert to assist with the tax returns per season and develop a proper tax plan.

The Federal Government has recently proposed to reduce Company Income Tax for SMEs from 20% to 15%, in the new National Tax Policy, according to the Minister of Finance, Kemi Adeosun.

*Contracts, Agreements

Every business, no matter how small, should have a business operating system which will ensure the right structure, processes and proper documentation of the business, even before it starts off. Hence, just before you get too excited about involving co-founders, partners, investors, employees or consultants in your enterprise, make sure you have contracts and agreements (non-disclosure, non-compete) in place. Be careful to store receipts, invoices, document every change that occurs in the business and record all transactions. This will guard all that essentially belong to you.

It is important to converse with a lawyer, experienced in Nigerian business formation law to help you evaluate all the options available as a startup. Lawyers are not as expensive as you may be assuming; and the value one gets is very significant. You should know that lawyers are regularly abreast about tax and corporate laws, which keep changing all the time. These also vary significantly from one state to the other. Some metropolitan urban states like Lagos, often charge more as tax. To be sure of a business being successful, the business team should probably include a lawyer who can keep up with changes in the laws, legal and tax codes and advise as one progresses in the business. This will reduce unknown legal issues and, thereby save money and negative images - Business Garden.

Finally, remember that competent legal advice is always recommendable. Never underestimate legal and regulatory matters. Protect your business.