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Set Up a Successful Small Business: Law for small businesses

by Vera Hughes and David Weller

Most small business law applies if you employ other people. However, there are some laws you must obey as a small business entrepreneur. The Trades Description Act requires you to offer for sale products or services which are fit for purpose. The Data Protection Act might apply if you maintain a database containing more then just names and addresses. The Health and Safety at Work etc Act 1974 must be followed if you work on other people’s premises.

To protect your own interests, you should employ a solicitor for such things as a Partnership Agreement, a Memorandum and Articles of Association for a limited company and for renting or buying premises.

When you employ others, many laws and regulations apply, some of which are: various anti-discrimination acts; regulations about National Insurance; income tax deductions; holiday entitlement; Statutory Sick Pay; Particulars of Employment; parental leave; the Working Time Directive and of course HASAWA (the Health and Safety at Work etc Act 1974). The Offices, Shops and Railway Premises Act 1963 may apply, as may certain hygiene regulations, and for shops the Sale of Goods Act will apply. Bear in mind, too, Consumer Protection legislation and fire prevention requirements.

Do seek advice on legal matters from the Federation of Small Businesses, Business Link, your local Chamber of Commerce, your solicitor and your accountant.
 



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