Compliance in business is a collective term that describes how well a company acts in accordance with the laws and regulations governing its activities. Regulations vary depending on the industry, the location of the company, and how the company is organised.
When you want to start a new business, there are a few measures you are expected to comply with. Each state and region have their own distinct compliance regulations, but here, we look at a few that cover businesses everywhere in the country.
Choose a Name you can use
Before printing your business cards, make sure that the new name you are thinking about does not violate the rights of an existing company.
In most cases, you don’t need a lawyer for this, because you can do a free online search for company names registered in the country. You can find out if the name you are thinking of using is already in use by another company or brand.
You should also check to confirm that the name is not embroiled in any legal conflict and that it is something you can use in any part of the country, should your business operations expand. Only then can you register it.
Register your Business and get a License
Check online to find out how to set up a business. After registering your company name, you must obtain all necessary licenses and permits to do business in your city.
Find out about other requirements specific to your place of operations.
Keep Proper Company Documentation
In addition to the records required by law, it is important to document important corporate meetings and transactions. For example, most states require companies to organise annual general meetings and keep records of minutes of these meetings and any approval resolutions, as well as all written notices to shareholders in the last three years.
You should also keep a proper record of all your financial transactions once your business operations take off. If you do not keep records, the tax court may open a case of personal liability to individual members of the management, directors and shareholders of the company.
Open a Bank Account to Start Building a Business Loan
If you rely on a personal loan, personal mortgages, car loans and personal credit cards to finance your business, it will affect your ability to qualify for a business loan.
Even if you started out your business with your personal funds, it is always best to open a separate and official bank account for your business. This will come in handy not just when you need extra capital for your business, but also for tax-related purposes.
Buy Company Insurance
Companies need insurance to insure themselves against financial losses resulting from lawsuits or property damage to the company’s property. As a small business owner, you are responsible for purchasing various types of insurance for your business.
Protecting company assets, property, and employee health and well-being are just some of the reasons why business insurance is important and in many cases, mandatory.
If you do not take out adequate insurance, you may not be able to start a new business. And if your business already exists and you do not receive or maintain adequate insurance coverage, you may be subject to high fines or loss of company licenses.
No matter the type of business you run or where you run it from, always make sure you know the laws and comply with these laws and adhere to the guidelines to ensure that your business is in good standing with the relevant authorities.