Legislation

Hey friends :)

In this article I am going to describe all the legal related stuff which came across launching the product. Without much talking and introducing let's hop in:

First things first, it was not as bad as imagined. But still the legal field stays one of my least favorite topics. The procastination level of tasks with legal background is hiiiiigh. Honestly, it's a bad habit. But I can't help myself.  

Many questions needed to be answered and you can take a guess what the solution was: Yes! Correct: RESEARCH. And many phone calls with the departments.

Anyway, let me briefly give you the structure how the legal part was divided:
(all the information below is valid in Germany. It may be different in your country, but I'm sure it is almost the same and similar procedure, at least you get the idea)

1. Register the business
2. What to obey when selling foods
3. What information must be on the labels
4. Legal regulations on the website
5. Taxes

1. Register the business

Before you start an online shop you need to register your business. In Germany, where I'm from, this can be done online. You need to fill out a form with couple questions and can submit the document. It took almost a month before I had the confirmation.

Usually in other countries there will also be an online possibility to register or you have to go to a trade department in your local city. I remember I went to an office in my city when registring my first business. Anyway, this is just formality.

There are many forms how you can register your business. For a starting small business I recommend to choose the samllest version available. You don't need to start with a LLC. Start small and upgrade when needed. To start small also has the benefit that you do not have to deal much with taxes.

2. What to obey when selling food

When selling food here in Germany they differentiate between food and dry food.

You can't produce food at home, pack it and sell it. Like sauces, bread, and ready made stuff. For those type of purposes you need a industry type of kitchen to make sure the hygiene and sealing is done accordingly to the law. A kitchen with all required standards. Anyway- that is difficult and costs a lot of money.

Luckily I sell spices, dry food- and it is / was possible to produce the mixes in my home kitchen. Jackopt!

Suprsingly there is much paperwork when seling food:
When you mix ingredients togehter, you need to save the whole supply chain. Write everything down in detail and keep track and keep it. In case something gets wrong and a customer complains you can track back the way and know what was mixed together. Also every single product must be mixed the same way: You need to write down gram per gram how the mix is produced. I used a kitchen weighing machine and wrote everything down. So each time I mix a batch it will have the same recipe.

3. How to label your product

When labeling a food product there are offical informations which needs to be written down. There are official websites from the government providing all the relevant informations. Let me tell you- be strict and precise with it! The infos vary on the product. I can not give you a general answer, because each case is different.
All I can say is to be in close contact with your department, so you get first hand information and are safe.

4. Legal regulations on your website

In europe one law is applicable for everyone: GDPR, general data protection regulation. Also you need to have a legal imprint with information like who is the owner of the website. There also must be contact inforamtions. Be strict with those type of declarations because there are lawyers who only look for mistakes like this on websites to file a lawsuit against you. Just make sure your website is up 2 date with the law and you'll be fine.

5. Taxes

The taxes will depend on the chosen company form. For small companies there is a turnover limit of 22.000 €. When you are below that level you do not have to deal with taxes.

I recommend to find a tax consultant who can help you with your business. Every product has a different taxation and it is an important field where no mistakes should happen.

As a business owner you should know everyting about taxes regarding your business and how much you have to deal with them or not. There are many more things to pay attention to and your taxt consultant knows the answer. Additionally he will help you to save money. In the beginning you can also ask your tax office for information.

Taxes are an important topic and I am no expert, so I can not give you much infos, cause I can't guarantee the correctness. I can only stress to deal with them! Nothing can go wrong when obeying tax-regulations.

Once the setup is done correctly, it is an running system

Alright, this was all I know about the legal field related to my business.
It is a topic where I can not give you a step by step order what to do, because each case is handled differently.

I recommened to ask as many questions to official departmens and ask for help. The people there are happy if you are honest and transparent with your business idea.

Also remember: If you want to start and grow a business you want to be sustainable. You want to make money and an impact, so be sure the legal stuff is managed well.

I hope this articl could give you a glimpse of what things you need to keep in mind when it comes down to legal related stuff. Hope you enjoyed it reading and see you in the next step of the process.

Enjoy life and bless up :)

Sahil