Finally! You have reached your goal of being able to start your own business. Congratulations!

As I always say, TALK TO A LAWYER FIRST. Rule Number One: Never start your business before talking to a lawyer. According to the Registrar of Companies, in 2021, the new businesses registered were 136, 633. Around 2540 of them closed operations by the end of the year making that around 2%. Overall, only 30% of businesses survive till the 2nd-5th year milestone.

Booking a consultation with a lawyer to discuss your business acts as a buffer to the main reasons businesses close operations; getting sued, mismanagement by lack of structure and subsequently losing lots and lots of money.

Here are 5 reasons why you should talk to your lawyer before starting that business you are excited about:

1. Capital- this discussion will open your eyes to how you plan to get the money for your business if you do not have it already. Your lawyer will inform you of the advantages and disadvantages of borrowing money from your family, friends, the bank or even including investors in your business venture.
2. Subject Matter- you will need to understand the law with regard to the kind of business you want to start. Businesses dealing in investments, telecommunication, construction, gas, oil & energy require special processes for them to be legally operational.
3. Business Registration- In Kenya, there are various ways to open and run a business. They all have their advantages and disadvantages. Talking to your lawyer will give you an opportunity to decide which one will be the best fit for you depending on your needs.
4. Taxes- one of the reasons businesses fall is because of tax problems with the Kenya Revenue Authority. Not knowing when your tax obligations fall or what your tax obligations are for your business is detrimental to the success of your business. Your lawyer can guide you on this.
5. Employment- If you wish to have employees to help you run your business, you need to understand employment law in Kenya. Having this information will prevent you from getting sued by your employees due to employer negligence on your part.

Book a consultation with us today for more information and assistance for all your business needs.