If you’re like most people, you may not know the difference between corporate and commercial law. While they may sound similar, these two branches of law are actually quite different. Corporate law is the branch of law that governs businesses and the formation, governance, and dissolution of corporations. Commercial law, on the other hand, governs transactions between businesses and consumers. This blog post will explore the differences between corporate and commercial law in more detail. We’ll also discuss some of the key areas of overlap between these two branches of law.
If you need to determine which type of law firm you require and the services that may suit your needs the best, you can find all that information and more below.
What Is Corporate Law?
Corporate law, or company law, relates to the conduct and relations of your business that allow it to continue functioning within the confines of the most current rules and regulations.
Often, corporate law also covers the intricacies of business growth and decline and every stage in between. Someone starting a new business for the first time might rely on a corporate lawyer for help in the same way that an established company looking to restructure might. Generally, corporate lawyers assist with:
- Corporate financing
- Mergers and acquisitions
- Annual tax filing
What Is Commercial Law?
While commercial law also relates to your business, it’s more closely aligned with the activities within it. It can be challenging trying to navigate the legal world of business on your own, which is why business owners rely on commercial lawyers to ensure activities can be carried out legally and safely. Traditionally, commercial law firms can help with:
- Property law
- Consumer law
- Intellectual property
- Labour laws
What’s the Difference Between Corporate Law and Commercial Law?
As both corporate law and commercial law relate to your business or company, it’s easy to conflate both of these sectors.
However, corporate law is about ensuring your business abides by all rules and regulations, whereas commercial law focuses on your business activities, trading, and transactions.
Why Hire a Commercial Lawyer or Corporate Lawyer?
As a business owner or manager, it’s generally your responsibility to make sure daily operations run smoothly. However, you can’t be an expert in every business activity. You may not have a complete understanding of labour laws, how to carry out a merger, or even how to make sure you file your taxes correctly.
Hiring a commercial lawyer or corporate lawyer, depending on your needs, can be crucial. You may even decide to hire one for some of the following reasons.
When you need to form contracts to work with other businesses, protecting your business at all costs is crucial. You may not know how to do this through specific contractual terms. Fortunately, business lawyers do.
They can draft contracts for property, people, and businesses that ensure your best interests are covered.
You may think you’re on the right track with specific choices you’re making for your business, such as acquisitions, but there’s no harm in getting confirmation or a second opinion. Aligning yourself with corporate and commercial lawyers may prove beneficial.
With the knowledge you have, you might believe you’re making good choices for your business. However, when it comes to labour law, buying new businesses, and similar, it’s helpful if you can call upon someone with more knowledge than you.
Understanding corporate and commercial law can take time, but it’s worth learning as much as possible. The more you know, the more you may realize how crucial law firms like Beganyi Professional Corporation can be for a wide range of corporate and commercial activities.