Some of the important points that come under compliance are:

Audit: By law, every private limited company has to get an annual audit done of their financials and submit it to the government. This is an external audit done by a certified agency. Many companies also follow an internal audit policy whereby they can check how internal operations are going.

Data security: Considering that all companies today work on computers and use technology in various forms, data security becomes an important element. Though a start-up might not be able to do much about that, having it in mind would ensure that you look into it when it becomes important.

Other aspects: There are many other aspects that can come under compliance depending on the nature of your business:

Employee safety: A company is held liable if anything untoward happens to an employee on its premises.
Insurance: It is a good policy to have all company purchases, including computers, insured.
Employment letter or contract: A well-drafted employee contract will ensure that the company is safe from any issues that an employee might have in future.
Intellectual property: The last thing you want is to have an employee leave the company, carrying all the work or the business model with him.
Poaching: Another thing you don’t want is that when a person leaves, he takes away half of his team.
Non-disclosure agreement (NDA): Signing an NDA helps ensure that any other company with which you are working does not leak or steal your plans on any business model.
Office security: Ensuring that your office equipment and property are safe.

When dealing with compliance, professionals or firms who are good at doing this should be hired. You should ensure that the people whom you engage with not only get you structured but proactively ensure that you don’t go wrong anywhere. You should hire an accountant and a lawyer whom you also trust as a friend and follow their advice on all vital issues. Though SOP— Standard Operating Procedure —does not come under compliance, it will help lay a good foundation if given equal importance from the beginning.

Learn more about compliance related things only at the University Canada West, one of the best-known universities in Canada, offering various business and management related programs.

Yoey Thamas

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