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Does Your Startup Need Commercial Law Services

Managing startups is an overwhelming task that requires focusing on main goals, marketing, and much more. Among all these, one of the most common pitfalls for small business owners is not paying attention to the right advice from the start.


It includes not hiring the services of professionals who are experts in commercial law. So, here are all the reasons which will tell you does your startup need commercial law services.

Let’s have a look:

Does Your Startup Need Commercial Law Services?

Yes, your startup needs law services! The right commercial law services will help you review contracts, avoid internet security breaches, tax audits, avoid disputes, etc. Moreover, it’s your 24*7 access to the right information, advice, and peace of mind. As a result, you can focus on other areas of a startup while leaving the legal issues to capable hands.

Some of the reasons to hire commercial law services for your startup are:

Identifying the Company Type

Various company types have individual sets of laws and regulations. Identifying your startup and complying with laws will help you avoid legalities if you unknowingly claim your business in another wrong category.

For example, it can be a sole proprietorship, Public Limited Company, Private Limited Company, Limited Liability Partnership (LLP), or group of companies. The registration process, amendment and renewals are complicated and must be performed by experienced commercial law services. Also, they help to register the company with the Companies and Intellectual Property Commission CIPC.

Helps to Manage Contracts and Agreements

As a startup owner, the chances are high that you may need to be made aware of specific legal agreements. However, agreeing to the terms without knowing contract clauses or stipulations can be very dangerous. So, having a capable team of commercial law services will help you assess, review and amend the contracts is beneficial for you in the long run and avoid any legality.

Some of the contracts can be:

  • a shareholders’ agreement
  • letters of appointment and employment contracts
  • insurance agreements
  • specific legal agreements
  • financial agreements
  • Terms and conditions
  • BEE Affidavit
  • Protection of Personal Information (PoPI)

Dealing With Tax Liability

According to the laws, there are different tax advantages and disadvantages for specific businesses. You must follow the VAT Act 89 of 199, the Securities Transfer Tax Act 25 of 2007 and the Tax Act 58 of 1962.

Moreover, there are various rules for small, medium and large startups. For example, filing more than the required tax or less than required can lead to legalities. A commercial law service will help you identify your tax liabilities and file a right return.

Complying With Cyber law

Cybersecurity and following cyber laws have become very important for all digital platforms. For example, the website of the startup must obey the website Terms of Service/Terms and Conditions, the Protection of Personal Information Act (POPI Act) Compliance Services and the automated website privacy policy. So, knowing these terms will help your cyber team create platforms which abide by all the cyber laws.

Dealings With Employment and Labour law

For a successful operation of a startup, they must follow the Basic Conditions of Employment Act 75 of 1997. It mainly deals with employment agreements, working hours, resignations, notices and other terms and conditions. These are mandatory requirements which must be drafted, edited and executed in the presence of professionals like commercial lawyers.

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