Starting Business: What Legal Factors to Consider?
Introduction
It is no secret that opening a new catering subsidiary company is a qualitatively new stage of development for the hotel and resort corporation. Accordingly, implementing such a project from scratch requires thinking through several ideas. For instance, before creating a firm, one should carefully study a wide range of legal aspects and, in particular, pay attention to the six key points that will be discussed in this paper. The corporation should consider the six most important and significant legal factors: business structure, insurance, health and safety, data protection, and employment law.
The Six Most Important Factors
Firstly, the corporation should focus on creating a competent and correct business structure to eliminate various problems and unnecessary costs in the future. Matthews (2022) claims that obtaining limited liability status is one of the most prudent decisions for a business, providing significant peace of mind. A clear, well—chosen structure is a tool to adhere to the order in decision-making and overcome differences. Secondly, the introduction of appropriate insurance for business is an equally meaningful legal aspect that is crucial for the success and prosperity of the corporation’s future project. For example, the hotel and resort corporation should pay attention to employers’ liability insurance and, if desired, pay for insurance that includes coverage of situations in which a key person cannot work due to some circumstances (Matthews, 2022). Thirdly, the firm must take care of workers’ health and safety, taking specific measures to manage risks within the framework of legal norms and laws (Matthews, 2022). Hence, it is strongly recommended to appeal to the Health and Safety Executive (HSE) since non-compliance with the occupational health and safety requirements of employees can lead to a highly unfavorable outcome for the new catering subsidiary company leader.
Fourthly, one should additionally remind the corporation about creating an appropriate data protection policy and the confidentiality of information. Perhaps this is one of the main factors, at least concerning business operations, providing huge income and many other business benefits, taking into account data management (Sultana, 2021). Fifthly, it will be essential to emphasize the importance of such a legal factor as labor law and the rules for hiring employees. In particular, this moment will regulate labor disputes, protect employees’ rights, and ensure stable labor relations (Tomassetti, 2020). It is necessary to ensure that specific policies on data protection, health, security, use of social networks, and much more are included in the employment contracts of the firm (Matthews, 2022). Sixthly, the hotel and resort corporation should consider the legal conditions, draft contracts, and conclude appropriate agreements between co-owners. These measures are necessary to resolve issues regarding the management of a new business and avoid severe disputes. Finally, today there are many legal factors to worry about when opening a new company. Nevertheless, the above aspects are sufficient for a general understanding of the picture of the situation and an approximate plan of action.
Conclusion
Summarizing the above information, it is necessary to state that the corporation of hotels and resorts, before opening the new subsidiary for catering, must fundamentally take into account the six most critical legal factors as business structure, insurance, health and safety, data protection, and employment law. Paying attention to them is the key to high results and outstanding achievements in starting a new business. Moreover, it is known that the larger the organization, the more attention it attracts from competitors, partners, investors, the state, and society. The more efforts the corporation needs to make to comply with the requirements of the law and take into account the above factors.
References
Matthews, P. (2022). Six legal considerations when starting a new business. Woodcocks Haworth and Nuttall. Web.
Sultana, K. (2021). Why data privacy is most influencing factor for every company? AudiencePlay. Web.
Tomassetti, J. (2020). Power in the employment relationship: Why contract law should not govern at-will employment. EPI. Web.