How Can Entrepreneurs Navigate Legal And Regulatory Challenges?

Entrepreneurs face many stages, from protecting the entrepreneurial idea to signing the first contract, establishing a company, and receiving investment.

In this article, we will discuss which branches of law entrepreneurs will encounter at which stages, and which stages they should pay particular attention to, for you in this article. To navigate legal and regulatory challenges for your startups, the first thing we need to pay attention to is whether the startup is legal or not. 

Even though you roll up your sleeves with good intentions, you may be taking a legally prohibited startup.  Then, the first thing we will do is to check whether our startup is legally prohibited or not, according to the laws of the country in which we want to make our startup.  Because your startups can be put into practice if they are legal. 

What Legal Structures And Compliance Measures Should Entrepreneurs Establish?

For the venture to be legally appropriate, the entrepreneur must be a person who can legally carry out this activity and make a profit. The fact that the owner of the enterprise is a person who is subject to a ban on engaging in trade and other profitable activities, who has not previously been convicted of disgraceful crimes for some enterprises, or who cannot meet these conditions although the existence of an authorization certificate is required, or who does not meet the conditions required to engage in enterprise in some countries, puts both the enterprise and the entrepreneur at risk. 

The fact that the startup is from products or services that are prohibited from being produced or sold by the laws of the country where the startup is intended to be made makes the startup inapplicable.

For example, you cannot sell medicines that are sold only in pharmacies and cannot be traded online through your e-commerce site. If you want to bring a product from a foreign country and sell it here, such as ordering an electronic cigarette, you must be very careful.

Because some goods may be stuck at customs. Getting a large order stuck at customs will open the door to a very important crisis for you.

How Do Intellectual Property Rights Protect Entrepreneurial Innovations?

Intellectual rights, in their simplest definition, are rights that establish an ownership relationship over the intellectual products created by a person’s labor and are protected by law.

If we look at the validity periods of copyright, the period stipulated in our country is 70 years, generally during the life of the author and upon his death.

Copyrights are absolute rights in terms of the environment in which they can be asserted. The rights holder can enjoy legal protection against anyone who infringes it. However, this does not provide unlimited protection under all circumstances. Public interest, public morality, public order, etc. reasons may require limiting the right.

Entrepreneurs attach importance to their ideas, pursue them, and work day and night with great effort to realize them. Sometimes they create a product and believe that this product will bring a new breath to humanity, sometimes they want to turn their product or service into a brand.

The rights that serve to prevent the use of the products or services produced by an enterprise by others and provide legal recognition of the relevant products or services are industrial rights. Industrial rights form the basis of the protection phase of the enterprise.

Intellectual and industrial rights are important in protecting the entrepreneur or startup. Industrial property rights consist of trademarks, designs, geographical indications, utility models, patents, and integrated circuit topographies.

Within the scope of intellectual rights, copyrights grant any rights to the owner of the work, including reproduction, distribution, dissemination, processing, representation, and public transmission rights, as well as financial rights.

What Are Common Regulatory Hurdles For Startups, And How Can They Be Overcome?

Both your startup is legal and you are legal to make this startup. So, is your startup idea, product, or brand legally protected? It should be noted that it is important to legally protect the product or service that emerges as a result of the entrepreneurial idea.

Especially at the idea stage, there are legal protection methods regulated by industrial property law such as utility model registration, patent registration, trademark registration, copyrights, and so on. Moreover, trademark and patent consultancy services have become easier today.

Failure to protect the ideas mentioned on the internet or even failure to register a trademark of an enterprise that has already started operations may cause major problems in the future. Therefore, a startup that does not have a solid foundation and is not protected by law is likely to encounter problems or theft of ideas in the future.

Can You Provide Legal Guidance On Contracts, Agreements, And Taxation For Entrepreneurs?

Today, many institutions, with their lawyers and consultants specialized in e-commerce, personal data protection, and consumer, commercial, and corporate law, provide consultancy services to startup companies, especially technology companies, in terms of managing their investment processes and carrying out the necessary transactions within this framework. Some of the services of these institutions are as follows:

Providing consultancy services regarding the responsibilities of the company to be established, especially companies that will operate in the electronic commerce sector, arising from legislation such as tax and consumer protection, and the incentives that investors can benefit from.

Providing consultancy services in determining the company structure, taking into account the commercial interests of the investor during the company establishment phase, preparing the articles of association and shareholders’ agreement, and carrying out the company establishment procedures.

Establishing mechanisms by the legislation and providing consultancy services in the fields of intellectual property law, personal data protection law, and e-commerce law.

Providing consultancy services in entrepreneur-investor negotiations and preparing letters of intent, confidentiality agreements, and legal and financial review reports within this scope.

Creating practical and fast solutions with our foreign business partnerships and providing legal and financial consultancy services for the global structuring of entrepreneurial companies.

How Can Entrepreneurs Seek Professional Legal Counsel For Business Compliance?

Entrepreneurs should receive consultancy from institutions or individuals specialized in the field of entrepreneurship law to ensure the most successful business compatibility. This consultancy aims to prevent the product or service in the startup project from being incompatible with legal regulations.

First of all, entrepreneurs should determine in which areas they need entrepreneurial law. Then, they should enter into a research process by evaluating the available references.

Nowadays, many institutions provide legal consultancy for entrepreneurs, both physically and online. The most appropriate one among these should be determined and the recommendations of this institution should be followed.

See you in the next post,

Anil UZUN