Do business the legal way
In order to do business, the legal way, you need to be a registered business and be tax compliant firstly, but you also need to comply with the labour laws of the country. Depending on the type of industry you trade in, there might also be laws governing the in- and out- flow of goods or services, and how you deal with payments. By Linda Botts
Don’t fool yourself. Governance is a serious issue that you should not ignore regardless of whether you are a micro, small or medium enterprise.
It can be argued that, if you are a sole proprietor you don’t need to comply with certain laws and regulations, however, that kind of thinking can get you into serious trouble.
How compliant is your business with your industry’s governing bodies? It becomes more complicated when you have employees. Putting company policies and procedures into place can contribute greatly to the level of success you can reach as a business. Your people will be able to take your product or service to flight if they know what the boundaries are.
How does your business manage risk? You need measures, controls and policies in place and policies are greatly based on business law principles and ‘doing the right thing’. Measures and controls set the expectation.
As the Owner or Director of a business you can be held liable if a legal issue surfaces with an employee or customer.
Here are a few steps that you can take to ensure that you are compliant and within the ambit of the law:
- Register your business with CIPC and SARS. If you are serious about your business and you want to grow it into a valuable asset, being a registered business is the best way to go. It should not be an expensive exercise. CIPC has made it easy for any business owner to register successfully. However, there are experts who can assist if you need help. You can easily find them on the internet.
- Research the industry in which you trade. It could save you on heartache and legal cost if you make sure that you function within the laws and regulations of your industry. You might need licensing to trade or specific training for your employees.
- Make sure you are compliant with the labour law. Speak to a Labour Law Practitioner or Expert who can advise you on what you need to have in place for the wellbeing of your employees. They are your greatest asset, and they most likely deal with your clients or customers.
- Get your suppliers on a service level agreement. If you make regular use of specific suppliers, it is a safe place for both parties to be on contract. Speak to a Commercial law specialist for more info and assistance.
- Get your retainer clients on contract. If you have clients that pay you a retainer, for the sake of both parties you should draw up a contract. It offers boundaries that is important to have, and it manages risk.