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How Does the Law Affect Businesses?

Governments impose different rules and regulations on businesses and some of these rules and regulations apply to both small and big businesses. As a business owner, it is very important for you to understand business law and the regulations that affect your type of business.

How Does the Law Affect Businesses?

Tuesday February 07, 2017,

3 min Read

It is also important to know that the government can change the rules and regulations concerning businesses from time to time. Therefore, to be on the good side of the law, ensure that you are up to date with your government laws.

If you are new in the business industry, then chances are that all this is new to you, right? As a beginner, you should visit website relating to business law and read through different business law articles or business attorneys’ intelligence. By so doing, you will grasp the basics of business law and it would be a great start for you.


Nevertheless, keep reading for some expert guidelines to having a successful legal business. In most cases, the regulations imposed by governments on businesses are classified into four main categories; employee relations, taxes, bureaucratic and international trade. Here is how these set rules and regulations might affect your business (or businesses):

• Change in business laws means changes in the way businesses operate. Taxation policy is one the government policies that affect businesses directly because taxation is based on the amount of money earned by all businesses. For example, increase in corporation taxes which focus on the businesses profits has an effect similar to increase in costs. VAT (value added tax) is also a tax policy that will affect the bottom line,although in most governments VAT, is a cost on the consumer and not the business owner.

• Business laws affect employer to employee relationships and vice-versa. For instance, it is mandatory for employers to follow government regulations regarding the way they treat their employees and their hiring mechanism.

• When it comes to international trade, business laws are imposed in regards to international trade tariffs. Such rules and regulations are strict on the kind of products going in and out internationally. The international trade rules and regulations also enforce guidelines on the parties that should take part in international trade.

• Lastly, governments impose business rules and regulations to ensure that all businesses are run in line with codes of ethics, good health and safety of the consumers.

However, with that said, it is important to understand that business laws differ by state, locality or country. And although it is quite a challenge to know all the regulations that apply to your particular line of business, it is important that you get someone who knows better to represent you. A business lawyer is indeed the right person to direct you towards success and profits without breaking the law.

Also, businesses that is open to the public need to be approved by the government. And for your business to be approved, a license or permit is issued. Therefore, before opening up a business, ensure that you get a license and right to run the business.

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