Legal: Reviewing the stages of legal growth on a quarterly basis ensures the sustainability of “emerging”
Asharqia Chamber, represented by the Small and Medium Enterprises Center, organized a workshop entitled "From Establishment to Growth... Legal Aspects of Startups", presented by the Managing Partner at Shawli Abu Najm Abbadi Law Firm, Abdullah bin Hussam Shawli, at the Chamber's main headquarters. During the workshop, which was held on Monday, December 23, 2024, in the presence of entrepreneurs and interested parties, Counselor Shawli discussed the stages of growth for small and medium-sized companies, including an introduction to the proper legal establishment of start-ups, incorporation documents, governance, contracts, human resources, government platforms, programs and subscriptions, assets, tax and legal review, cases, and violations. Counselor Shawli stressed that when there is rapid growth from the labor and legal side, the growth plan methodology must be developed according to its evaluation, and reviewed on a quarterly basis, and the advanced programs or applications that facilitate the legal aspects of archiving, commitment and governance must be reviewed to achieve sustainability, in addition to awareness of the importance of governance of the contractual relationship between the employee and the establishment, and the form of the company in terms of its classification as a limited liability entity, or a joint-stock company, or a simplified joint-stock company, and shares and stakes, and investments are obtained through investment rounds, the introduction of partners and investors, and contracts of partners and shareholders. Shawli explained that one of the ways to maintain the legal form of the establishment, which ensures its sustainability in practicing the activity, is for the establishment to define its obligations, and limit its financial obligations to existing contracts, for example, lease contracts, sales and purchase contracts, which include supply, service provision contracts, terms and conditions, including privacy policies, commercial papers, confidentiality agreements, memoranda of understanding, and knowledge of the customer in an appropriate and clear manner. Shawli pointed out the importance of the facility following up on violations issued by the competent authorities on a regular basis, as if these violations are repeated, the origins of the violation must be addressed in the facility to avoid any escalation.
