In New Zealand, setting up your own business from the scratch requires you to have a complete thorough understanding of not just the market, but also of the business laws which you would encounter. You need to understand the legal implications of the business as these differs with the type of business you want to move ahead with. There are a number of factors which you need to consider and overcome accordingly.
Is it necessary to have a business plan?
For a successful business, it is a pre-requisite that you have a business plan on which you would take your business to. A number of factors are required to be taken into account while making a plan for your business. Such factors include the type of business and its structure, costs incurred in the establishment of the business, tax implications, industry’s legislation, profit sharing plan, funding arrangement, etc. Once you consider all of these, you would be in a better position to form a business plan.
Which type of business arrangement to move ahead with?
There are different types of businesses and you need to finalize which business arrangement you want to adopt for your business. In such a scenario, first you need to understand these types and the laws which you would encounter for different types of businesses. Following are the types of businesses:
Sole Proprietorship:
This is referred to as the one man show type of a business. It is considered to be the simplest form of business wherein the individual is solely responsible for everything pertaining to the business. The advantage of this type of business is that it requires minimum start-up cost, however, the major disadvantage is that the liability would be unlimited. This means that you would be personally liable for any losses or claims of arising out of the business.
Partnership:
The Partnership Act 1908 regulates the business of partnership. It is the most common type of business which preferred for the fact of sharing of two or more person’s experience and resources. Usually, the partnerships are registered and its terms and written down.
Company:
Unlike the other forms of businesses, the formation of a company requires some documentation and only then a company can be incorporated. It works as a separate legal entity which means that it is considered to be an individual. It has directors, financiers, shareholders, etc. The major advantage of doing a business as a company is that it offers protection through the concept of limited liability and in the event of any claims or losses, the company would face the same rather than the people operating it.
How to save my business from competitors?
Once the business is commenced, the owners are concerned to protect them from the competitors. The competitors. Your business can be protected from competitors in the case of ownership of intellectual property. This can be achieved by registration of Trademarks, Patents and Copyrights in the Intellectual Property Organization. We will also help you with such registrations.
Need to consult a lawyer?
As mentioned above, setting up your own business requires due diligence of all the aspects pertaining to business. Fortune Manning is specialized in Commercial law dealings. We do advise you of all the possible options you have and all the legal implications which you are likely to encounter in any type of businesses mentioned. Such checklist and due diligence would help you to choose what is best for you. We also take you through all the documentation as well as the registration process.
