When your start-up company enters the market, it has to deal and comply with various laws and regulations. The well-known examples of legislation and regulations that almost every company or institution must comply with are the General Data Protection Regulation (AVG) or the European legislation on consumer protection if the company is aimed at consumers.
Laws and regulations
The General Data Protection Regulation (AVG) regulates the processing of personal data. Personal data consists of information that is directly about a person, or that can be traced back to a person. The processing of personal data includes virtually all actions that can be imagined, including the collection, storage, modification, use, distribution and making available of data. Under the AVG, a company needs a basis for processing personal data. The principles are listed limitative in the AVG. This may include the consent of the person concerned, necessity for the performance of an agreement or for legitimate interests.
In the context of European consumer protection legislation, for example, companies have various information obligations towards consumers. This may include information about the age, reflection time or contact details of the company. This information should be easily available to the consumer. If your start-up is going to offer the products or services to consumers remotely, then the consumer has a number of far-reaching rights. For example, the entrepreneur must properly inform the consumer on the website about all sorts of things with regard to his product or service offered. If that information is not (sufficiently) provided before entering into an agreement, then the consumer is not bound by that agreement. Further is the entrepreneur subject to a number of other requirements in the context of consumer law.
If your company does not comply with such laws and regulations that apply to it, both internally and externally, it quickly risks a hefty fine, an order subject to a penalty, withdrawal of a license or even a criminal investigation. The Law & More specialists are experts in the field of compliance and can investigate for your company which laws and regulations apply to your business and whether your business is sufficiently structured according to the applicable laws and regulations.
Expending the start-up
Most start-up companies aim to grow quickly into a commercial success. It is therefore important to gain market share after the start-up has been established and to grow in a relatively short time. This often requires large amounts of money, time and manpower to develop the concept and then be able to earn from it. When a start-up is considered successful, it is not easy to determine. An IPO is generally seen as a success factor.
If your start-up company is a commercial success on the market, it can quickly grow into a scale-up. Scale-ups are start-ups that are already older and have achieved their first successes, there have been several investors and a considerable amount of money has already been raised. This phase often also involves purchasing a larger building, introducing new products or services, hiring (more) people or opening new points of sale. As a result, your company not only grows, but also changes in terms of content and law.
At Law & More, we understand that changes can be overwhelming and drastic for your start-up company. Especially when a lot changes quickly. That is why Law & More uses a personal approach and is happy to provide your company with legal advice in this phase as well. If you want to know what legal changes your start-up will bring, or if you have any other questions, please contact Law & More lawyers.
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