Starting a business or a startup is undeniably exciting. However, it’s imperative to have a solid understanding of how to operate within the boundaries of the law.
In an exclusive conversation with lawyer and girl child activist Barrister Chinwe Ajaebili, also known as @legaljewel on Instagram, she sheds light on what it takes to ensure your business operates on the right side of the law.
HENOTACE: Where am I missing it when it comes to the law and my business?
CHINWE: Firstly, the journey begins with an idea. As a believer, it’s essential to have a purpose and a vision for your business. Once you have your business concept, you need to consider the organization’s structure. This involves registering your business name, which is a critical first step. If your business operates under a name other than your own, it must be registered. Registering your business name not only lends credibility but also shows that you take your business seriously.
Furthermore, registration makes your business details accessible to the public through the Corporate Affairs Commission (CAC), establishing trust.
Secondly, depending on your business’s nature, you may need to register with specific ministries or obtain industry-specific certificates.
For instance, doctors need medical certifications, and those in construction require relevant certificates. As Christians, we should be mindful of adhering to legal requirements, especially in industry-specific matters.
HENOTACE: How do you protect yourself from drug dealers and other illicit individuals investing in your business?
CHINWE: Before entering into any business partnership, it’s crucial to thoroughly examine the company’s memorandum of association, which outlines the company’s objectives. Conduct extensive research on your potential partners.
By doing so, you prepare yourself legally and have a defense in case of legal issues. Remember, ignorance of the law is not an excuse, but being unaware of certain facts can be excused.
Keep meticulous records of every transaction and invoice. These records can be your safeguard in case you face scrutiny by authorities like the EFCC. It’s essential to gather comprehensive information, not just relying on what you are told; further investigation is often necessary.
HENOTACE: For those in the construction industry as a believer, how do you protect yourself from laundered money?
CHINWE: In this scenario, you wouldn’t be held liable because you, as a professional, were not involved in the money laundering activities.
As long as you received your professional fees and were not complicit in the illicit financial dealings, you are not accountable legally. However, it ultimately comes down to morality and integrity, as your reputation is at stake. People’s perception of you matters, even if you are legally clear.
HENOTACE: Is there any case in the law where you will be asked to refund the money?
CHINWE: The responsibility for refunding the money would typically not fall on the contractor who built the structure but on the person who engaged in money laundering. It often leads to a plea bargain with the government. However, if you are implicated in the evidence presented in court, you might face trial as well.
HENOTACE: What are the likely loopholes people can use against your business?
CHINWE: There are several potential loopholes to be aware of, such as not paying taxes, failing to file annual returns, and defaulting on loans. Not paying taxes can hinder your ability to secure certain contracts, and failing to meet statutory rules can also pose obstacles to your business. Additionally, taking out a loan in Nigeria results in your name being listed in a register. Failing to repay this loan can have adverse consequences for your business.
Listen to the full interview on Audiomack
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