Archive | business RSS for this section

What You Need to Know When Buying Land for Business

Planning to establish your own business and searching for an office space? There are lots of details that need to be taken into consideration when buying land especially for business. Thorough search is required to get a premium land at affordable prices. Here are some important tips for buying a plot for your business and cracking the best deal.

Things to Consider

1. Premium Location:

Depending on the type of business you want to start, location is the most important thing that may determine the success of the business. You may want to consider the top business locations but they usually cost too much and there is a lot of competition for the ideal location as well. So depending on your budget, business domain and size, you can also consider buying a plot in the residential areas as well. There are many most happening residential areas and you can definitely consider buying residential plots in Pune that are close to the IT areas and other major spots.

Here are examples of some types of business locations:

  • For an eatery, places near cinema halls, colleges, and railway stations are the best locations.
  • Software parks provide attractive deals for an IT company.
  • In case of manufacturing units, availability of raw material and utilities in the vicinity of the unit is essential.

2. Analysis of Real Estate Developers:

Once the location is decided, now it is time to look for real estate developers in that area. Every day hundreds of ads are published in newspapers and internet about the property sales. It’s not important to go out search yourself; you can always search for the ads like plot for sale in Pune, residential plots in Pune etc and contact the publishers, agents via phone or email. This will help you get in touch with more sellers in short period of time. Approach them or the real estate agents to find proposed property rates by different developers. Also, check for any special offers or discounts on the property.

3. Select the Seller:

After analyzing all the real estate developers, decide from whom to buy the property, try to negotiate with the seller. It may be possible that you are able to save some money which you can later invest in the business.

4. Legal Check of the Property:

Finding a plot for sale in Pune is not difficult but to get a genuine one with no legal issues or problems, it is important to take some time and do the research. To avoid legal hassles, it is mandatory to do a background check of the property. Check if the property is approved by any financial institution (public or private sector bank) and the title is cleared by the government development authorities. If possible hire a lawyer to check the authenticity of the property papers. Double-check all the terms and conditions associated with the property and ensure that there are no hidden charges in the land deal.

5. Utilities Availability:

Another factor that is also important to consider when buying land is the availability of the utilities like electrical supply, water, and telecommunication systems in the area. Non-availability may cause problem in future and affect the business.

6. Payment for the Property:

It is recommended that if possible try to make the payment in cash. Going for the loan option from financial institutions may be time consuming and expensive. For example, if the land cost is 15 lakhs and a loan of the same amount for 10 years is taken, then the buyer may end up paying somewhere around 20-25 lakhs at the end of the tenure. This may be a huge amount in the initial stages of business establishment. So try to save more and snap the best deal.

7. Registration of the Property:

Get the property registered to ensure the legitimacy of the transaction. This can be done at the state department office of the registrar. Procure all property papers from the seller.

All the above discussed points serve as a checklist to look for when buying a plot for business.

The Verdict:

Well, as you see, buying a property for business and buying it clean without any issue and just about on right price, is bit of a work. You need to consider a lot of things like explained above while going for one. If you are short on time and want to get settled and started quickly, do consider taking help of a professional agent or experienced legal person. There are hundreds of residential plots in Pune that get published for sale every single day.

Just do your homework well, study every legal procedure and documents requirements, take professional help and start your business with a boom! Enjoy.

Top 10 legal issues for start-ups

Launching your own business? According to Start-Up Britain, 125,517 businesses have been started this year (and counting), so you’re not alone. But make sure you protect yourself and stay on the right side of the law by swotting up on the top ten legal issues you need to be aware of.

3044867827_6e619a0f80

1. Business type

It’s one of the first questions an entrepreneur will ask themselves, and one of the most important: What type of business are you, and what are the implications? Your options are to be a:

  • Sole trader: this is easy to set up but a high-risk choice. If your business fails, you’ll be personally responsible for paying back any debtors using your personal assets.
  • Partnership: this means more than one person is liable for the business. You will both be registered as self-employed and will have to fill in individual tax returns. Be sure to have the terms of the partnership enshrined in a partnership agreement.
  • Limited liability partnership (LLP): there will be more paperwork involved in setting up a limited liability company and you will have to give HMRC your accounts records and tax return every year, but there is less financial risk involved. If the company folds, you will not be personally liable for any outstanding debts.

Private limited liability company (Ltd): Popular with professional services companies, each partner is classified as self-employed and enjoys the benefits of being a limited company (i.e they only stand to lose what they invest if the business fails).

2. Intellectual property and copyright

When you’re choosing your business name and branding, or even honing your product, you’ll need to make sure you’re not infringing any copyright laws, trademarks or patents to avoid getting fined before you even take your first order.

If you’re developing something new or want to safeguard your brand identity, protect your competitive advantage while you have it by patenting it or registering a trademark.

3. Health and safety

Before you start trading or hiring anyone, make sure you have a health and safety policy and you’ve carried out a risk assessment so you don’t fall foul of the Health and Safety Act.

You’ll have to consider providing clean toilets, enough space between desks, good lighting, a reasonable level of ventilation and set a comfortable temperature. If your business will use hazardous chemicals or machinery, your obligations will be even more stringent.

4. Franchises

Franchises are an attractive option if you’re looking to take on something with an established brand. But it’s important you read and understand all the small print so you know exactly what’s expected and what protection you’ll have.  Make sure that the terms are in line with the British Franchise Association’s Code of Ethical Conduct.

5.Tax issues

You have certain legal duties when it comes to your tax payments which will vary depending on your legal structure. Check if you should be VAT registered, what national insurance payments you will have to pay or if you’re obliged to fill in a tax return.

6. Employment law

You are legally bound to buy employers liability insurance if you plan to take on staff and you should make yourself aware of your main obligations.

For instance, you will have to pay staff the minimum wage or higher, give them a certain amount of time off between shifts and provide them with a secure and safe working environment. There are also a host of laws relating to parents’ rights when they get pregnant or after their child is born.

If this is too daunting for you, it might be best to seek the advice of an employment solicitor — this is an area you can’t afford to ignore.

7. Environmental concerns

There are certain things you’ll have to do to make sure you’re not breaking environmental laws, such as disposing of your waste appropriately. If your business will produce a large amount of air pollution or you’ll use hazardous chemicals, you may need a special permit. It’s best to check what your industry-specific requirements are with the Environmental Agency.

8. Do you need a licence?

Some business types will need to have a licence to operate, especially if there’s a potential risk to the public at stake. Some of the instances in which you’d need a licence include:

  • If you sell food or drink
  • If you use hazardous chemicals
  • If you will operate in a public space managed by your local council
  • If your business will operate and make noise late at night

9. Protect yourself

If your business sells advice rather than a tangible product and your client isn’t happy with your service (and suffers as a result of it), professional indemnity cover will buffer you from a costly lawsuit.

If your business is public-facing, you should consider public liability insurance in case a member of the public is injured while on your business premises.

10. Data laws

You’ll probably collect a huge about of data from both your customers and staff, and it’s vital that you have plans in place for protecting that data so you don’t breach the Data Protection Act and put people’s privacy (and your reputation) at risk.

You will have to consider how you collect and store data and be prepared to disclose what data, if any, you hold about somebody if a customer exerts their legal right to ask you.

Are you a recent start-up or are you thinking of setting up your own business? What are your biggest legal concerns?