The Legal Checklist Every Startup Needs Before Launching

Starting a business is exciting, but missing key legal steps can put your startup at risk before you even begin trading. This guide walks entrepreneurs through the essential legal steps to ensure their business is protected from day one.

1. Register Your Business Properly

Decide whether to register as a (Pty) Ltd, partnership, or sole proprietorship. Your choice affects liability, taxation, and growth opportunities. A (Pty) Ltd often offers protection against personal liability and is preferred for attracting investors.

2. Set Up Founders’ Agreements

If you have co-founders, clearly outline ownership percentages, profit shares, and exit strategies in writing. Verbal agreements can lead to disputes that jeopardize the business.

3. Protect Your Brand

Register your trademark with CIPC to safeguard your company name, logo, and slogan. This ensures competitors cannot copy your brand and helps maintain credibility with investors and clients.

4. Draft Core Contracts Early

Prepare key agreements including service agreements, employment contracts, NDAs, and client terms and conditions. These documents provide clarity and legal protection from the outset.

5. Comply with South African Laws

Ensure your business complies with tax obligations, POPIA, and labour laws. Non-compliance can result in penalties or reputational damage.

6. Protect Intellectual Property

Clearly define ownership of creative work, software, and designs in agreements with employees and contractors.

7. Review Regularly

As your business grows, your contracts and legal structure should evolve. Conduct an annual legal review to ensure ongoing compliance.

Contact Legal Drafters to set up your business the right way from the start. Legal Drafters is a South African-based legal consultancy specialising in contract and commercial law for businesses. We help entrepreneurs and companies protect their interests through expertly drafted agreements, reviews, and legal templates.