Starting a company is an exciting yet demanding process. In addition to a creative idea and the right business strategy, there are numerous legal requirements that must be taken into account. In this article, we provide an overview of the most important legal steps you should consider when founding a business.
1. Choosing the Legal Structure
One of the first and most important steps in starting a business is selecting the appropriate legal form. Whether it’s a GmbH, AG, sole proprietorship, or another structure – each has its own advantages and disadvantages in terms of liability, taxation, and administrative effort. It’s advisable to consult a lawyer or tax advisor to make the right choice for your business.
2. Registration with the Commercial Register
Once the legal structure is determined, you must register your company with the commercial register. This step is mandatory for most businesses in Switzerland and many other countries. Registering with the commercial register makes your company official and protects it from unauthorized use of the name.
3. Tax Number and VAT Identification Number
Another important legal step is applying for a tax number, which is necessary for proper tax compliance. If your company engages in cross-border trade of goods or services, you will also need to obtain a VAT identification number.
4. Contracts and Terms & Conditions
To stay on the safe side legally, you should prepare clear and binding contracts for your company – both for internal employees and external partners or clients. Make sure your general terms and conditions (T&Cs) are legally compliant and transparent. These are crucial not only for your customers but also to avoid disputes in advance.
5. Data Protection and Legal Compliance
In the digital age, data protection is becoming increasingly important. Ensure your company complies with data protection laws – for example, by providing a privacy policy, implementing GDPR requirements, and securely storing customer data. Mistakes in this area can lead to heavy fines and damage customer trust.
6. Insurance and Liability Considerations
Depending on your industry, assess which types of insurance make sense for your business. This may include liability insurance, business interruption insurance, or professional indemnity insurance. These protections safeguard you against unexpected costs and legal consequences that can arise in day-to-day business.
7. Seek Legal Advice
The legal requirements involved in starting a business can quickly become overwhelming. It’s highly recommended to work with an experienced lawyer or legal expert who can guide you through the entire founding process and help you avoid potential pitfalls. Qualified legal support ensures your business is built on a solid legal foundation from day one.
Starting a business is an exciting step, but it comes with numerous legal obligations. From choosing the right legal structure and registering with the commercial register to handling data protection — you should not overlook the legal aspects. Let an experienced attorney support you and ensure your company is well-positioned legally from the start.
Do you have questions about the legal structuring of your business or need support with the incorporation process? Contact us today and let our experts advise you!