Legal advice for small businesses in the UK
If you are going to be supplying goods and services to the public then you are going to need to know about consumer legislation - such as the Sale of Goods Act and the Trade Descriptions Act.
Business names no longer need to be registered with any Government Department. They are now governed by the Business Names Act 1985. You'll find an excellent guide to the Act. You will need to display your trading name in accordance with the Act at your place of business, and on stationery and invoices etc.
Basically you need to check, as best you can, that the name you choose to trade under is not the same or similar to any other business in your local area. If it is then you may find yourself being sued for "passing-off" ie trading on the back of someone else's reputation!
If you are dealing with other businesses and the public then you need to get your Terms and Conditions sorted out. These deal with your contractual relationship with your customers or suppliers. They will cover such items as deposits, payment terms, goods, failure to perform, and company duties etc. (It maybe worth getting them professionally drafted up by a solicitor.)
Understanding your customers and the business you are in
Valuable customers are thought to be the ones that spend most or generate most profit. This is not always the case, however. For example, a customer who spends much money but always pays late may be less valuable than customers who spend little and often, pay on time!
Small business insurance and legal information
Professional indemnity insurance could protect your business from financially crippling and often reputation-damaging claims by dissatisfied clients. Find out more about Professional indemnity.
Public Liability Insurance covers you for any damages that a member of the public may be awarded as a result of injury or damage to them or their property caused by your business. It also covers legal fees and other expenses to do with defending any claim.
Do not hesitate to stand up for yourself when a disputed sum of money is significant, ignore those who say, “Look, if you drop the case I’m sure there will be a load more work for you”, It just doesn’t happen! From 26 May 2008 (subject to Parliamentary approval), the law protecting consumers against unfair trading will be the same across the European Union. This will not only increase protection for consumers but will make it easier for businesses to operate in different member states. For more details, see the section on Consumer Protection from Unfair Trading Regulations.
The legal implications of raising finance and agreeing terms with a bank or lender. Choosing and securing the right type of finance for your business is very important. Do they understand the nature of your business? If not, it's often helpful to provide them with a written business plan and summary.
Can you provide a client-care letter that sets out their terms of business and a complaints procedure?
You can protect your business ideas and confirm ownership, making sure any intellectual property rights to your product or service are protected and that you're not infringing the rights of other businesses.
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