Legal & Contracts for SMEs
Shareholders agreements, NDAs, GDPR, director liability, and the legal essentials every UK founder needs to know.
20 articles
What Is a Shareholders Agreement?
A shareholders agreement is a private contract between the owners of a company that governs how the business is run, how decisions are made, and what happens when shareholders want to leave.
What Is a Term Sheet?
A term sheet is a non-binding document that sets out the key commercial terms of an investment or acquisition before the formal legal agreements are drafted.
What Is Intellectual Property for SMEs?
Intellectual property (IP) refers to legal rights that protect the creations of your business — from your brand and software to your processes and content.
What Is GDPR for SMEs?
GDPR is the UK's data protection law. It governs how businesses collect, store, use, and share personal data — and non-compliance can result in significant fines.
What Is a Non-Disclosure Agreement?
A non-disclosure agreement (NDA) is a contract that requires one or both parties to keep certain information confidential. It is one of the most commonly used legal documents in business.
What Is an Employment Contract?
An employment contract is the legal agreement between employer and employee. UK law requires employers to provide a written statement of key employment particulars from day one.
What Is a Service Agreement?
A service agreement is a contract between a business and its clients or suppliers that sets out the terms on which services will be provided, paid for, and resolved if something goes wrong.
What Is Director Liability?
Director liability refers to the legal responsibilities company directors bear personally — and the circumstances in which the protection of limited liability can be lost.
What Is Trademark Registration?
Trademark registration gives your business the exclusive right to use a name, logo, or slogan for specified goods or services in the UK — and makes it much easier to stop others copying you.
What Is Limited Liability?
Limited liability is the legal principle that protects a company's shareholders from being personally responsible for the company's debts beyond what they have invested.
What Is a Breach of Contract?
A breach of contract occurs when one party fails to fulfil their obligations under a legally binding agreement. Understanding your options when this happens is essential for any SME.
What Are Payment Terms (and Why Do They Matter Legally)?
Payment terms define when and how invoices must be paid. Getting them right — and enforcing them — is one of the most important legal and commercial disciplines for any SME.
What Is Late Payment Legislation?
The Late Payment of Commercial Debts (Interest) Act 1998 gives UK businesses the right to charge interest and compensation when invoices are paid late by other businesses or public bodies.
What Is Force Majeure?
Force majeure is a contractual clause that excuses a party from performing their obligations when extraordinary events beyond their control make performance impossible or impractical.
What Is VAT Registration?
VAT registration is the process by which a business registers with HMRC to charge, collect, and remit Value Added Tax. Once your taxable turnover exceeds the threshold, registration is compulsory.
What Is Companies House Filing?
Companies House is the UK's official register of companies. Directors are legally required to file certain documents each year — failure to do so can result in fines, prosecution, and even company strike-off.
What Is Business Insurance?
Business insurance protects your company against financial loss from claims, accidents, and unforeseen events. Some types are legally required; others are commercially essential for any SME.
What Is an Indemnity Clause?
An indemnity clause is a contractual provision that requires one party to compensate the other for specific losses, claims, or costs — often going beyond what would be recoverable as ordinary damages.
What Is GDPR Consent?
Under UK GDPR, consent is one of six lawful bases for processing personal data — but it has specific requirements that many SMEs get wrong, particularly in marketing contexts.
What Is a Data Breach Protocol?
A data breach protocol is a documented procedure for identifying, containing, assessing, and reporting a personal data breach in compliance with UK GDPR's 72-hour notification requirement.