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Innovation and Entrepreneurship

The Nitty Gritty

Commercial Law by Nick Youngson CC BY-SA 3.0 Alpha Stock Images

A very interesting article in the reading material is Legal and Accounting Basics for Start-ups. It throws some light on the legal and accounting procedures for starting you own company. This is something that is sadly very much lacking in the Innovation Management program at HR. This needs to be rectified soon as these are foundations on which everything else is built when starting a company. Of course, you can hire experts to do this, but I believe the founders should have at least elementary knowledge of these subjects. 

How do you really found a company? What is the procedure? How much does it cost? What type should you select:  Einstaklingsfyrirtæki? Sameignarfélag? Einkahlutfélag? Hlutafélag? These are very important decisions that will greatly impact the future of your start-up. How do you make legal contracts with staff, suppliers and customers? Do you need a business licence? Do you need a health and safety one? What about regulations for things like pollution, labour, and food safety? What about imports and exports? Do you need a permission? The list goes on.

This is something every founder should know about. I would go even further and say this information is something that every person in society should know about not just founders and business people. This should be taught much more aggressively in school. That would facilitate more people realising their innovative dreams and founding companies. 

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