The UK government established the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) to provide tax incentives for investors in start-up and higher-risk companies seeking to raise equity finance. So far, these schemes seem to have worked well for start-ups and SMEs during the critical early years, raising over £23 billion for forty thousand businesses since 1993. Both schemes offer investors generous levels of income tax and capital gains tax relief. Reflecting the higher perceived risk of investing in start-ups, the schemes also mitigate any potential downside ..read more

For most start-ups and small businesses, due diligence is something to be endured when a potential investor undertakes an audit process before committing to investing in your company. The intensity of that audit often depends on the amount of investment involved. That much should be obvious to any viewer of the business reality TV shows ‘Dragon’s Den’ in the UK or ‘Shark Tank’ in the USA. Accuracy and Transparency is Essential Sometimes, due diligence can be as simple as a face-to-face conversation, especially if you are a start-up looking for pre-seed funding. More usually the process can inv ..read more

Amongst the new employment laws expected to come into effect in 2024 is the Employment Relations (Flexible Working) Bill, which received Royal Assent and passed into law on 20 July 2023. Although a formal introduction date is yet to be announced, the new law is expected to come into force in April 2024, at which point employees across the UK will have greater access to flexibility over where, when and how they work. Employees will: gain the right to make two flexible-working requests within any 12-month period, whereas they previously could only make one such request; and no longer have to se ..read more

Several business surveys suggest that the most problematic issues facing any small business or SME include cash flow management, hiring and retaining talent, and regulatory compliance. This last issue is especially relevant to tech start-ups in particular and one of the regulations with the greatest potential for causing problems through non-compliance is the UK/EU GDPR (General Data Protection Regulation) rules. GDPR is immediately relevant to countries in the European Union, however following Brexit, UK companies still have to follow UK GDPR rules which are essentially the same regulations s ..read more

A start-up lawyer can provide legal assistance and guidance that can help build a solid foundation for your new company and help avoid problems that can arise. Starting a new business can be an exciting and rewarding journey, but it can also be quite challenging. Many entrepreneurs who start a new business overlook the importance of hiring a start-up lawyer, often due to the perceived expense of so doing. Some start-up owners will explore ways to reduce cost by attempting to create their own contracts using templates available online.  The following are just a few ways that a start-up law ..read more

Although under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 only employers with 250 or more employees are required to report their gender pay gaps, many smaller businesses are deciding to do it anyway. It is certainly true that trying to reduce a gender pay gap becomes more difficult as a business’s size increases. By making it an early priority, employers can get the right processes in place to prevent the growth of larger gaps as the business grows. However, gender pay gap reporting can be time-consuming and difficult, so why should a small business want to voluntarily ..read more

Most people would associate a board of directors with bigger companies where the influence and guidance of an independent board is crucial to good corporate governance and the success of the business. However, although a start-up or small business can also reap substantial benefits from them, many owner/founders still question why they need (and shy away from) accessing the advice and guidance an in-person board can give. Instead, they turn to sometimes dubious online accelerator programs. Take Your Foot Off the Accelerator Ask a start-up founder what they look for in an accelerator program an ..read more

Do You Really Own Your App? Depending on who you listen to, Artificial Intelligence (AI) is either a boon for mankind or, according to Elon Musk, the greatest existential threat we face as a species. It’s the “dangers” of AI that have fulled most regulation currently being discussed, with news reports focusing mainly on the perceived risks for citizens’ fundamental rights and freedoms. However, there are also legal liability concerns for both developers and users of AI inspired applications and tools. AI and Intellectual Property Issues In particular, the development and increasing use of gene ..read more

Starting a new business can be an exciting and rewarding journey, but it can also be quite challenging. Many entrepreneurs who start a new business overlook the importance of hiring a start-up lawyer, often due to the perceived expense of so doing. Some start-up owners will explore ways to reduce cost by attempting to create their own contracts using templates available online.  A start-up lawyer can provide legal assistance and guidance that can help build a solid foundation for your new company and avoid these problems. The following are just a few ways that a start-up lawyer in London ..read more

In a previous Insight article we examined the issues faced by American companies wishing to set up business in the United Kingdom. The practicalities of doing that are complicated for US firms, and equally UK companies looking to expand into the USA face a similarly complex (but ultimately potentially very rewarding) journey. Establishing a US Entity Establishing a US entity is probably the most essential step for any UK firm wishing to do business in the USA. That’s certainly the case if you are thinking of hiring USA-based employees, especially if you are also considering offering them equit ..read more