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Setting up a business involves complying with a range of legal requirements. Find out which ones apply to you and your new enterprise.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

What particular regulations do specific types of business (such as a hotel, or a printer, or a taxi firm) need to follow? We explain some of the key legal issues to consider for 200 types of business.

While poor governance can bring serious legal consequences, the law can also protect business owners and managers and help to prevent conflict.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

Whether you want to raise finance, join forces with someone else, buy or sell a business, it pays to be aware of the legal implications.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

Commercial disputes can prove time-consuming, stressful and expensive, but having robust legal agreements can help to prevent them from occurring.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Whether your business owns or rents premises, your legal liabilities can be substantial. Commercial property law is complex, but you can avoid common pitfalls.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

With information and sound advice, living up to your legal responsibilities to safeguard your employees, customers and visitors need not be difficult or costly.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

As information technology continues to evolve, legislation must also change. It affects everything from data protection and online selling to internet policies for employees.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Intellectual property (IP) isn't solely relevant to larger businesses or those involved in developing innovative new products: all products have IP.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Knowing how and when you plan to sell or relinquish control of your business can help you to make better decisions and achieve the best possible outcome.

From bereavement, wills, inheritance, separation and divorce to selling a house, personal injury and traffic offences, learn more about your personal legal rights.

Confidence boost: small business owners show new optimism

3 June 2025

Two new studies suggest that UK small business owners are feeling more positive about their prospects and better prepared to face the challenges ahead.

A new survey by American Express has found that 68% of UK small firms feel that their business is resilient and 71% expect their business to grow over the next 12 months.

American Express' annual Business Barometer research, conducted in partnership with Small Business Saturday UK, has polled 1,000 senior decision-makers at UK micro, small and medium-sized businesses. The findings suggest that business owners are more resilient because they have adapted to a raft of external pressures in recent times.

The key results show that:

  • 68% of SME leaders say their business is resilient and is prepared to withstand challenges;
  • 69% are confident in their ability to recover quickly from setbacks;
  • 71% believe they are resilient as a leader;
  • 74% say seeking feedback and learning from how they dealt with previous challenges and has been key to building their resilience.

"Developing resilience - and looking particularly at how new technology can help drive this - is one of the best things that small businesses can do to secure their long-term success. We need to rally around the UK's 5.45 million small businesses to make sure they have as much support as possible." Michelle Ovens, director of Small Business Saturday UK.

This resilience is matched by growing optimism, with 73% of SME leaders confident in the future of their company, up four percentage points from last year.

SMEs investing in new technology

The research also suggests that UK SMEs are turning to technology as one of a number of strategies to further bolster resilience and drive long-term success, in addition to cost management and boosting marketing activity. Almost one in four SMEs (23%) are planning to invest in tech that helps drive process efficiency and automation; the same proportion (23%) have plans to introduce new payments channels, such as mobile or QR payments.

Artificial Intelligence is becoming a key strategic focus for SMEs - 49% of businesses polled have either integrated or are planning to expand their use of either Generative AI (generating new and innovative content) or machine learning (analysing data and making predictions).

IoD poll shows rise in business optimism

The American Express findings are in line with the latest Economic Confidence Index published by the Institute of Directors (IoD). It shows that there has been a rise in confidence among business leaders both in prospects for the economy and within their own organisations.

"It's good to see a recovery in business confidence underway, with our headline measure moving up three months in a row to its highest since August 2024. Looking at our underlying indicators, while investment intentions have also returned to last summer's levels, headcount expectations have dropped again and remain notably down. " Anna Leach, IoD chief economist.

The key indicators show a marked rise in investment intentions, revenue expectations and export plans. However, it also shows a small fall in headcount expectations. The top three factors having a negative impact on organisations remained the same as February 2025 - UK economic conditions, employment taxes and business taxes. Global economic conditions have jumped into fourth position.

Written by Rachel Miller.

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