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Most entrepreneurs and business leaders would love it if there weren’t many legal hoops to jump through when running a company. However, we need these legal essentials required for a business to operate. Without these legal essentials, trying to keep everything safe and legitimate would be too chaotic to manage. We need these hurdles to ensure that our businesses are protected and financially sound.
So, while they might be a headache to deal with sometimes, these are the legal essentials you need to abide by, particularly if you’re running things overseas.
Business Structure
Not every business is the same. There are partnerships, holding companies, sole traders, and so on. Before you can succeed in your business and meet all the necessary legal requirements, you need to choose your business structure and register it with the necessary authority.
If you’re uncertain about what route to go down, it’s advised that you seek financial and legal aid. Their expertise can help you find what’s right for the goals you have in mind so that you don’t run into trouble in the future.
VAT Number
For most companies outside the United States, a VAT number is essential. Not only does it keep your annual turnover a secret, but it also assures potential clients that they’re dealing with a stable and responsible business. However, obtaining this information can be complicated in some countries, especially if your business isn’t fully operational yet.
The Netherlands is a good example of this. It’s relatively simple to apply for a Dutch VAT number when you’re a national, but there are extra hoops to jump through for foreign entrepreneurs. You can find out more information about this at House of Companies. Their resources on VAT & EORI numbers will show you what additional steps you need to go through so that your business abides by the rules.
Licenses And Permits
Depending on your chosen industry, the laws over what you must do will vary. In some situations, you’ll need certain licenses and permits to meet the necessary legal requirements. That might be something like a public surveillance license, an environmental permit, a license to provide alcohol, or something else.
If you’re conducting business overseas, it’s also important to check the rules regarding licenses and permits in that country. You may need additional certification just to be allowed to run things there and a visa. The good news is that if you decide to establish your business in the Netherlands, they have a startup visa that makes it easier to get things going.
Insurance
Insurance is an investment that most entrepreneurs hope they never have to rely on. However, it’s always better to put money into something you never have to use rather than forgoing it and hoping for the best. Surprisingly, over a third of small businesses don’t have insurance, which is a staggering number when considering the financial risks involved.
To avoid joining that statistic, some areas of insurance to consider for your company include:
- Worker’s compensation insurance
- Public and employer’s liability insurance
- Product liability insurance
- Assets and revenue insurance
- Income protection insurance
- Credit risk insurance
- Business property coverage
The legal hurdles might be a headache most of the time, but they’re necessary to ensure that everything goes as planned with your business. Putting in the effort to deal with them now will give you much-needed peace of mind.
