Initial Legal Aspects To Consider Before Starting A New Business
After you decide that you want to start a business of your own, formulate the business plan and line up financing, it will finally boil down to opening up the store. While the planning of a business is a challenging and grueling task, the actual opening up of a store is equally difficult and has its own set up that needs to be followed. Here are a few tips on how to establish a small business.
Establishing the business plan
A new business setup in Dubai for example will require certain laws and regulations within the jurisdiction to be adhered to. Firstly, having a sound business plan and describing the road map for a forecast of at least 3-5 years ahead will be a good way to start. This will also identify the initial start up investment costs, marketing strategies and plan. This will also essentially be a good way to sell your business to any potential investors or interested parties.
Legal structure of the business
Starting a business in Dubai will give you various paper work and legally structured documentation to be filled out before incorporation of a company. This would mean choosing between a sole proprietorship and partnerships and so on. Sole ownership would mean that the business is fully owned by you and you are responsible for all the activities within the company including, profits, losses, debts and liabilities. Link here https://crosslink.ae/ to gain ideas setting up a business in Dubai.
Registering the business name
Usually if it is a sole owner, and the business is run under your name, it can be registered under your name however most states in the US for example require businesses to register under a third party for convenience of tax and legal purposes. This is helpful in order to keep your personal name and the business name separate. It is also important to obtain a business license in the region of operation by filling out an online application or visiting the council in the city.
Usually every state or city has different permit requirements based on the type of business; these vary from home based businesses to commercial permits. The local government bureau or authority in your city would help you with any advice or guidance regarding this.
Establishing a bank account
One of the main rules of starting a new business is not to mix up your personal and corporate bank accounts as this can not only be misleading but will also mix up the finances and make lose track of the separate finances and use of it. The local bank will help you in setting up a corporate account without much hassle.