Every business needs careful planning to succeed. But some entrepreneurs neglect one important aspect of company incorporation: knowing the legal aspects of running a venture.
It’s easy to get lost in the excitement of creating your company profile, drafting a strategic marketing plan, and running the financial projections for your business. But before you do, make sure to familiarize yourself with the legal ins and outs of running a business.
Seek Legal Advice Before You Start Your Business
A business plan serves as a tool for providing direction for your business and for attracting investors. But does the content of your business plan abide by the local rules and regulations?
Before you start drafting your marketing plan, consider meeting with a business lawyer to discuss what you need to do for your Singapore company incorporation. A business lawyer can help you identify the best business structure for your company, draft and review contracts, and negotiate on your behalf.
Consider Your Personal Assets When Choosing A Business Structure
A business registered as a partnership holds all partners accountable for all debts, losses, and risks that the company may accrue. This means that your personal assets may be put at risk should your company face a legal problem. This is something that you need to be prepared with if you choose partnership as your company’s business structure.
However, there are other options that you can look into such as Limited Partnership (LP) and Limited Liability Partnership (LLP). As the names suggest, these partnership limit the personal liability that each business owner may face. If you’re unsure which structure is best for your company, you may consult a Singapore incorporation services company to see which options are available for you.
Protect All Your Intellectual Properties
A company’s assets aren’t purely financial in nature. Some assets could be in the form of trademarks and intellectual properties that could increase a company’s net worth and should be protected at all costs.
The Intellectual Property Office of Singapore (IPOS) ensures that businesses have exclusive rights to logos, slogans, documents and artistic works. Registering your business assets with the IPOS ensure that only your company will have the right and ownership to the assets.
Be Clear About Your Rights And Responsibilities
If you are a sole proprietor, you most likely have a clear picture of what your rights and responsibilities are. However, running a business with other people means that you need to sit down and be clear about each of your duties.
Each member needs to define how much capital to contribute and decide what to do when a shareholder or partner leaves the business. A well-defined list of rights and responsibilities should prevent any lawsuit that could affect each member financially.
Put Everything In Writing
Regardless of size or scale, every business should keep in writing all of its agreements. Proper documentation is not only for the shareholders’ reference, but it can also required by the Accounting and Corporate Regulatory Authority (ACRA). Moreover, corporate records can help sort out misunderstanding among partners.
The Right Time For Legal Advice
The right time to seek legal help for your company is before you establish it. Don’t wait until you have your business name approved before you start thinking about legal matters that concern your company. Arming yourself with legal information pertaining to company incorporation will save you from possible legal problems in the future. Consult a business lawyer or get help from a Singapore incorporation services company today.