What are the Legal and Regulatory Obligations When Buying a Business?

What are the Legal and Regulatory Obligations When Buying a business

Many people dream of owning their own business. The idea that you can work on your schedule, make as much or little money as you want and do something for yourself is thrilling in the moment.

It’s not until reality sets in, there are taxes to be paid (ouch!), landlords need to be paid, maintenance will be needed from time-to-time, and sometimes suppliers won’t deliver what they promised!

One thing often forgotten about starting up a business is all the legal stuff – because let’s face it, nobody wants to deal with lawyers if they don’t have too…

What obligations Does an Australian Company Face?

You are now a business owner! It’s time to get started and you will need an Australian ABN, so head on over the Government website. Check out our guide for more information about registering your company as well as other documents required like GST registration which must be done once gross income reaches $75,000.

Be sure to check with your peak industry body or do some research online before diving into anything else – there may also be codes/standards specific to your trade that you’ll want to keep in mind while getting set up.

Get familiar with Australian Consumer Law (ACL)

The Australian Consumer Law (ACL) is the set of rules and regulations that govern consumer rights in Australia.

The ACL includes provisions on unfair trading practices, safety standards for goods sold to customers, consumers’ right to return faulty or damaged goods without a reason within a certain time frame etc.

Australian Consumer Law - photoholgic-K7yZ-CsDvRU-unsplash

Understand Contract Law Basics

Most people have heard of the term “contract” but might not know that it can be verbal or written. Knowing what to look for in contracts, like how long they are valid and if there is a time limit on when you need to cancel an order; will help avoid any contractual disputes which could lead to costly problems.

Employment Law

Employment law is one of the most important aspects for any company.

There are many regulations that you must be aware of before hiring or managing employees.

In Australia, there are 10 minimum rights and obligations set out by National Employment Standards (NES) which all employers need to provide their workers with benefits such as maximum working hours per week, requests flexible work arrangements depending on individual needs like parental leave time off from work after a newborn child arrives in your life.

One major downside about employment contracts not meeting NES standards could lead an employer being penalised up to $50,000 AUD!

Privacy Laws Keep Your Data Safe!

The Privacy Act regulates the way personal information is handled. If your company has a turnover of more than $3 million annually, you have responsibilities under the law to protect people’s privacy but that doesn’t mean it only pertains to big businesses either.

Even small companies like health service providers must follow these guidelines and ensure they are safeguarding customer data in line with all applicable laws.

Australia’s Mandatory Data-breach Scheme

Data is a valuable commodity, and it seems that there are more data breaches in the new digital age.

Australian’s new mandatory breach notification scheme, which came into effect on February 22nd of 2018, sets out the requirements for entities to respond when they experience a noticeable security incident where their personal information may be at risk.

This law applies to organisations already with obligations under Australia’s Privacy Act 1988 (section 18). A data breach occurs if an entity unauthorises access or disclosure all while compromising your privacy rights as outlined by legislation since 1988.

Many companies are unaware of the risks that come with not fully understanding their cyber insurance, and it’s costing them big time.

Overseas virtual assistants can do a lot of work for your company without you even knowing about it – but they may also leak sensitive information to outside sources like hackers.

It is unknown how many times this has actually happened or what penalties other countries impose on people who commit these acts; however, in Australia those involved face fines up to $230,000 as well as prison sentences lasting up to two years if convicted under provisions outlined by the Privacy Act 1988.

As such, employers must be vigilant when hiring staff overseas because there may still be consequences should any data breaches occur due to their virtual workers’ negligence.

Compulsory Insurance

You’ve heard the phrase “you can’t afford to not have insurance” and it’s true!

Businesses in Australia need to ensure that they are adequately insured.

Workers’ compensation insurance is compulsory for any business with employees and may be a contractual requirement.

Any company vehicles will require third-party personal injury (CTP) insurance as well, which protects the driver against liability claims from other drivers or pedestrians injured by an accident when their vehicle crashes into them – something your average Australian has likely experienced at some point.

Of course, there are many optional forms of coverage available too.

Business interruption or loss of profits protection can help businesses get back on track after natural disasters like wildfires have badly damaged inventory buildings and stock while management liability insures firms against mishaps caused by bad managerial decisions such as not paying contractors enough money for what was expected of them.

What are your risks? As a business owner, there is always something that can go wrong. Whether it’s the weather or an accident on site, you need to be prepared for anything so make sure you’re taking precautions and developing strategies to manage all of these various factors.

Insurance products such as Property/Liability insurance give peace of mind by protecting against any unforeseen events while also being versatile enough in regard to what they cover depending on their needs which means no matter where your company resides within Australia or how big its fleet may be, you’ve got security covered!

Let’s Wrap This Up!

It’s important to note, we are not lawyers, and anything in this article should not be construed as legal advice. If you want to know more, speak to the legal experts.

However, buying and running a business is a very satisfying endeavour. If you are an investor or entrepreneur looking for a credible business broker in South East Queensland, contact Marc Phillips here.

What are the Legal and Regulatory Obligations When Buying a Business?

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