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For entrepreneurs, it is best to be aware of all potential issues that might arise and which legal services you may require. Often, some issues would never cross your mind until they crop up. Depending on the industry you are in, many of these issues may be legal. This is why you should always consult a lawyer before starting a business so that your venture does not end before it starts. There is plenty of free legal information online, but it is best practice to consult a lawyer as they can tailor their advice to your business. This article will explain the most important legal services you need as an entrepreneur in New Zealand.
Most Important Legal Services
Business Structuring
Before undertaking business, the structure of your business must be appropriately established. For most entrepreneurs, this will be a simple company structure. However, where multiple shareholders will be involved in the business, a shareholders agreement should be established to formalise the arrangement. It is important to seek legal advice on the structure of your business and put this in place so that the business starts with a solid foundation and adequately equips you for future business plans.
Intellectual Property
Knowing all intellectual property considerations is essential when starting your own business. Often, entrepreneurs will start in the tech space, so intellectual property legal services can help you protect your intellectual property. This will be especially important if it is your point of difference, and for many businesses, intellectual property is a critical asset of your business. An intellectual property lawyer can tell you the best way to protect your technology, such as applying for a patent or trade mark.
Employment
As an entrepreneur, you will likely be hiring employees for your business. Therefore, you must be aware of employment law considerations, such as how employees should sign employment contracts. An employment contract is a legally binding between an employer and an employee. It will outline each party’s rights and responsibilities, including the steps an employee should take to terminate the agreement. Employment is a heavily regulated area of law, so businesses must handle their obligations well to ensure they don’t fall foul of it.
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Capital Raising
If you have plans for growth for your business, then it might need an injection of capital. This usually comes in the form of investors who are willing to invest in your business. To convince investors, you must tell them why your business will succeed. A lawyer can help you with the legal considerations of raising capital.
Disputes
An essential legal service that you may need as an entrepreneur is dispute resolution. Even with the best-laid plans, you are likely to encounter disputes over the course of your business career. Having a lawyer who can help you manage disputes as they arise will help you save time and money. Dispute resolution practices that you should consider undertaking when in a dispute include practices such as mediation. This involves a third-party mediator facilitating conversation so that both parties can compromise.
Alternatively, you can go to arbitration to resolve a dispute. In arbitration, an independent referee decides on the matter after hearing both sides. It is less formal and much cheaper than court.
Contracts
As an entrepreneur, you will enter into several contracts with different legal bearings on your business. These contracts might relate to supply or distribution. Your contracts must be drafted in the best possible way to clearly set the parties’ expectations. This will ultimately minimise the risk of disputes from the outset.
However, if there is a dispute, a well-drafted contract will ensure that you can navigate and enforce the terms of the contract to seek an appropriate resolution. If your contracting party breaches a term of the contract and the parties are unable to come to a mutually agreeable solution through dispute resolution, you can take them to court to seek enforcement of the contract and/or payment of damages (as relevant).
Key Takeaways
There are certain legal services entrepreneurs will need to consider in New Zealand, including:
- business structuring;
- intellectual property;
- employment;
- capital raising;
- disputes; and
- contracts.
Engaging a lawyer from the get-go will ensure that your business follows best practices and adheres to the relevant laws in each area, giving you the best chance of success. If you have further questions, our experienced startup lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.
Continue reading this article below the formFrequently Asked Questions
No, you cannot contract out of any employment law provisions enshrined in law, so you must follow them.
No, you can go straight to court, but this will be the most time-consuming and expensive option.
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