Why is legal service essential for a business?

February 21, 2024 by
Why is legal service essential for a business?
Audit company TMC

The primary task of a business is to ensure that its activities fully comply with the current legislation of Georgia. This is why, before starting any business, it is crucial to consult with a qualified lawyer to ensure that you do not run into legal issues from the very beginning.

There is no business that doesn’t require legal services. Unfortunately, many companies still do not use this service, and even worse, in an attempt to cut costs, legal responsibilities are often assumed by people of other professions or positions, which is naturally a mistaken approach. Jurisprudence is a broad field with numerous nuances, and only a lawyer is capable of taking all of them into account.


Why should a business have a lawyer?

A lawyer is critically important for a business, as they ensure that business processes and activities comply with the current laws of Georgia, and they work to help the business function correctly by applying legal norms.

  • A lawyer plans and directs the company's activities from a legal perspective, ensuring that the company’s interests are maximally protected.

Contracts, agreements, and other similar legal documents are crucial legal documents that define the rules and conditions for various business relationships, transactions, compensation, and more. When drafting such documents, it is critically important to involve a qualified lawyer to minimize legal risks and protect the business's interests. Only a lawyer has the competence to do this.

  • A lawyer safeguards the business from making wrong decisions during negotiations.

When dealing with local or international companies and partners, or when expanding the business or launching new projects, a lawyer should have a crucial seat at the negotiating table. The lawyer must analyze all possible risks, determine the legal processes the business will face, assess whether the terms of the agreement comply with the law, and help avoid potential barriers and pitfalls. This is of critical importance for the success of a specific project and the business in general.

  • A lawyer protects the business’s interests in court or other state agencies.

If a business has a legal dispute with another person, business entity, or the state, the lawyer is your defender in court, arbitration, mediation, or any other relevant authority.

Beyond legal disputes, the lawyer ensures that all necessary procedures for business processes are conducted in state and private institutions: in the Public Registry, city hall, district offices, and any other administrative bodies. The lawyer coordinates cooperation with notaries, represents the business in dealings with banks, protects the business’s interests in matters of intellectual property and copyright, and is involved in representing the company before any other relevant body.

What should a business avoid doing without a lawyer?

As mentioned earlier, many companies today operate without a lawyer or delegate legal responsibilities to individuals from other professions or positions. This can lead to irreparable problems.

To avoid such unpleasant situations, here’s what you should not do without a lawyer:

  1. Do not draft contracts, agreements, handover documents, or any other legal documents without a lawyer. Incompetently prepared documents can lead to significant misunderstandings and financial liabilities.
  2. Do not use template documents – Companies often use various types of contracts, agreements, and other legal documents found online or reuse old templates. Do not use these without consulting a lawyer. You may find yourself signing completely irrelevant and inappropriate terms that conflict with your business's interests.
  3. Do not start a business without consulting a lawyer – Depending on the type of business you plan to operate, various regulations may require adherence to legal procedures. Ignoring these conditions could result in fines or penalties. For example, before registering a business, the correct legal form of the entrepreneurial entity (e.g., sole proprietor, LLC, etc.) must be determined. Each has different legal obligations, which a lawyer can help you understand.
  4. Do not sign any contract, agreement, or memorandum without consulting a lawyer – These documents may contain legal terminology, details, or conditions that are unclear to you, or you may not be aware of their legal implications.

There is no one-size-fits-all solution for selecting a competent lawyer; the best way is to meet them in person. If you need a lawyer, schedule a meeting and get legal consultation.

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