We all know that legal protection is important not just to ourselves but also to our business. Running your business naked is not a great idea as it will expose yourself to unwanted risks! Having your business fully protected with adequate legal mechanism is necessary. Do you know how much legal protections do you need?
- Legal Structure of Business
It is important to consider the following:
- Company formation
- Legal mechanism for each business structure
- The duties and responsibilities of the officers involve in each and every business structure such as sole proprietorship, partnership, private limited entity and public limited entity.
- Relevant legislations- For instance, Business Registration Act, Companies Act, Limited Liability Partnerships Act and etc.
2. When the business is owned by more than one party
What kind of legal documents do you need to protect your rights and interests as a business owners/ business partners/ shareholders of the Company:
(i) Partnerships Agreement; or
(ii) Joint Venture Agreement; or
(iii) Collaboration Agreement; or
(iv) Shareholders’ Agreement; or
3. Internet is a gold space where information can be copied or stolen easily. How can we do to protect the content of our website being divulged?
(i) Website Terms of Use – It acts as a contract between your business and the visitors of the website. The terms may vary depending on the trade of your business. Essentially, it protect your company from legal actions by the visitors to your website.
(ii) Privacy Policy. A set of rules governing the collection, use and disclosure of personal data that are collected from the public visitors. Consent need to be obtained before the Company can use the personal data. The policy sets out the terms and conditions on the responsibilities and rights of the Company in processing personal data in accordance to Personal Data Protection Act. It will make your visitors feel safe and secure to know that their personal data are protected in a legal proper manner.
4. Maximise legal protection of your business brand
Register a trade mark (relevant legislation- Trademark Act)
Hard Truth for not registering your trade mark:
(i)You do not fully own your brand name after you registered your company name through incorporation.
(ii) Generally, you cant sue someone who is using the same brand name or similar brand name as of right unless you love to settle in court which it can be very expensive.
Brand is important to a business as it is a first recognition of your business to the public. Brand name need to be protected by registering trademark if you want to go further in your business journey.
5. Protect your legal interests in a business transaction
Each and every agreement is unique and it serves the purpose for different use in your business.
(i) clients’s agreement for products and/or services
(ii) confidentiality agreement
(iii) Memorandum of Understanding
6. Hiring vs. Contract Services –
(i) Employment Agreement (Employment Act)
(ii) Consultancy Agreement
(iii) Contract services agreement
Hopefully you have better understanding on the importance of the legal application in your business and how crucial legal protection plays a role in flourishing your business to the next level.
If you need further guidance, do drop us an email at contact@legacblossom.com
