Small and Medium scale owners tend to consult lawyers only when there is a problem or a litigation. They would make provision for sales, marketing, branding etc but little or no provision for legal support.

However, Smart businesses do not only concentrate on marketing but also think about preventing problems. Business lawyers can provide several support for the small and medium scale businesses to avoid problems, secure their funds and assets and prevent litigation to help the business grow.

BUSINESS FORMATION

In Ghana, there are several types of business registration or formation. They are Sole Proprietorship, Partnership, companies limited by shares, company limited by guarantee etc.

Each of them have their own peculiar advantages and disadvantages. It is vital that at the formation stage, you seek the right legal advice to assist you on the right type of business to register that will give you the needed protection and security required.

A business lawyer, depending on the nature of the business you intend to undertake, can provide you with the needed and timely advice to guide you choose the suitable one to register. 

DEBT COLLECTION

A business that undertakes the provision of goods and services will require the services of a lawyer to secure its credit sales. The credit sales can be secured by drafting water tight agreements to avoid or minimize default. Once you have a water tight agreement, in the event of default it will be easy to enforce it in law court or recover any losses you have incurred. Timely recovery of debt will provide the needed liquidity for your business.

INTELLECTUAL PROPERTY

In the process of building your business and brand, you will want to protect your logo, brand, name, innovations and others. A business lawyer can assist you to register your intellectual property to protect your intellectual property. In the event of infringement, a business lawyer can take the necessary steps to stop or restrain the infringer from further infringing on your intellectual property.

EMPLOYMENT CONTRACTS AND OTHER EMPLOYMENT AGREEMENT

Every business whether a starter or a business with a small team may grow at some point and will require new employees to join. There is the need to draw up an employment contract indicating all the terms and conditions of the employment and in line with the relevant employment laws in Ghana. A good employment contract should clearly spell out all the relevant terms and condition of the employment to avoid any potential Labour misunderstanding and disputes.

Non-disclosure agreement and confidential agreement are also required to prevent former employee and employees disclosing trade secrets and other confidential information that was acquired during their employment.

A business lawyer will be handy to assist you draft or review all the above to protect your business.

TAX ADVICE

Every business is mandated to pay Taxes. Taxes payable may vary depending on the nature of business, location of the business, structure of the business. Tax lawyers can assist a business to structure its activities in such a way that it minimizes its tax liability. Any penny saved can be used to resolve other pressing issues in the business.

REGULATORY AND COMPLIANCE

After registering the business and depending on the nature of the business, you may require to secure further licenses from other regulatory bodies like National Petroleum Commission, Environmental Protection Agency, Minerals Commissions etc.

An example in the Oil and Gas industry is that you cannot operate a business without securing a license from the regulator –National Petroleum Commission. Failure to secure the relevant licenses or permits can expose the business to sanctions.

A business lawyer can streamline your entire business in line with the relevant regulations; advise on all the relevant licenses or permits you may require.

DRAFT AND REVIEW CONTRACTS OR AGREEMENTS

All transactions in a business must one way or the other be covered by an agreement. The agreements can be in the form of sales and purchase agreement; credit sale agreement; distribution agreements; agency agreements; franchise agreements; partnership agreements; joint venture agreement and other commercial agreements.

Agreement is not only about writing anything on paper. It must contain all the vital ingredients of a valid agreement and the intentions of the parties. A business lawyer will be handy to provide the needed assistance.

TRADE

Business that involves in trade – buying and selling – requires a lot of certainty in their transactions. There should be certainty about the product, price, warranties, delivery etc. This and other potential uncertainly requires that a business lawyer is consulted to assist in developing a clear terms to cover all the potential eventualities.

DUE DILIGENT

Whether you are acquiring a property, land or a business, you will require legal adviser to conduct an investigations to satisfy yourself that the transaction is clean. Millions are spent on fraudulent transaction due to the fact that proper due diligent were not conducted. A business lawyer can assist you to conduct property due diligent to avoid or minimize the risk of fraud.

CONCLUSION

Instructing a business lawyer can be expensive, however, the benefits to the business in the short and the long term outweighs the cost incurred in instructing a business lawyer to assist your business grow.

We will therefore highly recommend that you involve a legal advisor in all your transactions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.