Countries that have achieved positive results in terms of business growth have put in place a strong legal framework that recognizes the importance of supporting the growth of SME activities. To what extent does the internal implementation of regulatory framework conditions in companies help companies? The total respect of the legal framework, the improvement of commercial relations with suppliers and customers, the legal updating of everything allow us to develop and conquer new national and international markets that go beyond what the local market offers. In this sense, the legal framework is the basis that legally supports the economic activity resulting from the normal functioning of the company, which is reflected, first of all, by the birth of legal personality in the company`s statutes; It is the mandatory document that gives the certainty that it will be created by legal means of the same, which will be verified before the respective commercial register of the nearest jurisdiction. that, on the basis of the updates made in the laws, we adapt our internal regulatory framework so that no errors occur. The legal framework of a company consists of three fundamental areas of law: Considering regulatory frameworks can save your business Let`s take an example of a company`s legal framework, if you write a letter in Word, text or anything else, it has margins that do not allow you to write more, These margins may vary depending on, What you want to do, the legal framework is similar because depending on the company and the country, you have margins that cannot be exceeded. In this example of a company`s legal framework, we will see foreign trade, starting with the regulatory framework formed by: The legal framework that revolves around a company can be an allied refiner if we know how to use it in our favor to improve the growth and development of companies. In our country, the rule of law plays an important role in the relations between individuals and organizations, so it is necessary that students of the Master`s program in Organization Management be introduced to the study of the law of organizations in general and companies in particular. This allows them to know, interpret and apply the laws, concepts and ideas inherent in the regulatory framework of organizations. The legal framework for a business must be fair, protect the rights of businesses and other economic operators, consumers and the State, and ensure a due process to settle disputes between businesses and other economic operators impartially and transparently. The legal framework for companies and their business transactions must meet a certain standard of uniformity and clarity, so that legislation must constantly adapt to a new reality of commercial globalization and define as explicitly as possible similar requirements, obligations and rights for simulated situations; Use the same language that helps understand legislation and compliance. However, each legislation adopts its own principles for each country, but we can usually define 6 principles that characterize each legal framework in the field of economic activity. Of course, we know that the legal framework of a company varies from country to country, but its objectives should be very similar, even if in this case there would be no tax havens.
The result is a set of policies, codes of conduct and regulations within which every company must operate; such as the Commercial Code, which regulates the duties and rights of commercial activity, tax laws governing the obligations of taxpayers, labor laws and other laws inherent in economic activity; All in accordance with the constitutional framework of each country. The Commercial Code is the norm used at the legal level to regulate the activities of companies in monitoring their market relations and business activities. Therefore, for a company to exist as such, it must apply the laws it sets on a daily basis. The legal framework of a company must be as clear and unambiguous as possible, avoiding in one way or another any legal vacuum that could lead to misinterpretation. In addition, all the rules that make up the legal framework must be sufficiently coherent to avoid contractions between them. It is important that the legal framework governing commercial activity is aimed at improving processes in order to achieve the purposes for which these laws are enacted; the effectiveness of the enforcement mechanisms, such as monitoring to detect possible infringements, such as the imposition of sanctions with corresponding fines and sanctions. Sole proprietorships are those founded by a person, and that person is the one who has the ability to negotiate, in the event that the corporation cannot meet certain payments, that person`s assets would pass as part of the payment of debts that the corporation has produced, this form of business is the riskiest and again the easiest to set up. An enterprise`s legal framework defines how the enterprise is organized and its activities are governed, including its internal structure, operating and management practices, administrative procedures and reporting obligations.
The legal framework of a company is the one that forms the basis for its creation and also determines the type and extent of political participation. It usually contains a considerable number of pieces of legislation and each of the statutes that are interrelated. Although for many entrepreneurs and small business owners, the legal framework of a business is seen as an obstacle, or as they would say colloquially, a loss in the shoe, full of obligations and a lot of taxes and heavy paperwork, the truth is that this is not the case! Similarly, when structuring specific regulatory frameworks in business plans, they will help to comply with the parameters required by law and thus avoid making mistakes that could jeopardize the integrity of the company and its reputation.