When it comes to running a business in Canada, there are certain things that you need to ensure to be on the right side of the law. Most business owners think of taxes and contracts in the context of compliance, but there is a lot more that matters. Underestimating the importance of legal compliance can put a company in a fix. You may face lawsuits, which can cause financial and reputational damage. The worst part is that you may not even know the reason that landed you in trouble in the first place. It is vital to be aware of the laws and regulations that apply to your company and be compliant with them. Here are the things that every Canadian business should ensure to be on track.
Pay attention to intellectual property
It is vital to protect your intellectual property such as brand logo, trade secrets, special services, and more. You will have to safeguard it from your competitors, independent contractors, and even employees. Fortunately, you can do it by securing the ownership rights with trademarks, copyrights, and patents. Also, you can have employees and independent contractors sign non-disclosure agreements to ensure legal protection.
Don’t go slack with privacy
If you think that data privacy is an IT issue, you can land into deep legal trouble. Privacy is a serious legal concern for businesses, regardless of size and domain. If you collect personal information from the customers, you have to follow the privacy laws that govern how this data is collected, used, and disclosed. If you fail to adhere to the compliance guidelines, you will have to face massive penalties and reputational damage.
Be extra vigilant about employment laws
Employment is another critical legal concern that no employer can ignore. Whether you run a small business with a few employees or have an incorporated company with a big team, you need to ensure compliance with territory-specific employment law and regulations. It is best to consult an expert employment lawyer in Toronto to frame compliant policies and processes. They can guide you about every aspect, from the classification of employees to employment contracts and more.
Be careful about what you advertise
While you may not take your claims seriously as you advertise, there are legal implications of going over the top. Business owners in Canada need to follow several advertising regulations, some of which are industry-specific. Ideally, you should keep track of these rules and ensure compliance at all times, even if you collaborate with an advertising agency for the job.
Invest in business succession planning
Business owners often overlook succession planning, but it is a vital aspect from the legal perspective. If you operate a sole proprietorship, you need to decide who will look after your bank accounts and files in your absence. Conversely, succession planning can get complex for incorporated businesses, so it is best to seek legal guidance right from the start. A lawyer can study the corporate documents and create a viable succession plan for your business.
Staying legally sound is important as it will keep you safe from any unwanted lawsuits and liabilities. It makes sense to consult an expert who can guide you regarding the common and relatively less common compliance requirements.