“Incorporation is just the beginning - the real test is whether you’ve secured every approval your business needs to operate legally.” 

Matt Glynn - Director, GLS Group

When we talk about Key Approvals, we mean any notifications, approvals, licences, consents, certifications and/or permissions that your business might need to start, continue, or expand operations.

These can include everything from tax registrations and industry-specific licences to health and safety certifications and intellectual property registrations. This stage ensures you can trade lawfully, protect your brand, and access critical infrastructure like banking, payment processing, and government support.

Fail to get this right, and you risk fines, forced shutdowns, or even personal liability - all before your start-up has a chance to hit its stride.

The Key Approvals stage is crucial to your start-up journey because it ensures:

◼️Legal Trading Status – You cannot lawfully operate without certain approvals

◼️Tax Compliance – Proper registrations avoid penalties and enable deductions

◼️Brand Protection – Early IP registration stops competitors copying you

◼️Funding Eligibility – Grants, investors, and lenders often require proof of compliance

◼️Operational Readiness – Many approvals are essential for opening bank accounts, hiring staff, or signing contracts

◼️Customer Trust – Being fully approved signals professionalism and credibility

◼️Regulatory Access – Enables participation in government tenders or regulated markets

◼️International Expansion – Prepares you for overseas compliance requirements

Legal Implications

◼️Regulatory Breaches – Operating without required approvals can lead to fines, closure orders, or even criminal prosecution

◼️Enforceability Risks – Contracts made before proper approvals may be unenforceable

Founder Relationship Issues

◼️Liability Disputes – Unclear responsibility for securing approvals can spark founder conflict

◼️Equity Conflicts – Delayed share allotments or compliance oversights cause future disputes

Commercial Implications

◼️Funding Barriers – Investors won’t commit without compliance certainty

◼️Missed Opportunities – Disqualification from grants, tenders, or supply chains

Operational Implications

◼️Banking Delays – No corporate bank account means stalled operations

◼️Trading Interruptions – Expired or missing approvals can halt business activity

Business Valuation Issues

◼️Lower Valuation – Poor compliance signals high risk to investors or buyers

◼️Sale Obstacles – Missing or defective approvals delay or derail acquisitions

Identify All Required Approvals

◼️Company incorporation or business name registration

◼️Tax IDs (e.g., GST/VAT) and relevant regulatory notifications

◼️Sector-specific licences, permits, or consents

Secure IP Protection Early

◼️File for trademarks, patents, or designs where applicable

Meet Employment Compliance Requirements

◼️Register for payroll, employee contributions, and workplace insurance

Consider International Approvals

◼️Explore cross-border licences and IP protections if expanding overseas

Implement a Renewal System

◼️Use a compliance calendar to track expiry and renewal deadlines

The above are just a few of the steps you can consider taking. There are many more things that need to be done to ensure the associated risks are effectively and pragmatically dealt with.

Case Study 1: The Café That Couldn’t Open
A start-up leased a prime location, hired staff, and stocked inventory - but failed to secure its food service licence. Approval delays cost two months of rent without revenue, burning through cash reserves.

Case Study 2: The Trademark Takedown
A fashion brand launched without registering its trademark. A competitor filed first and forced them to rebrand, losing brand recognition and marketing spend.

Case Study 3: The Investor Who Walked
A SaaS start-up impressed a VC with its product, but due diligence revealed overdue compliance filings and missing tax approvals. The deal collapsed overnight.

◼️Key Approvals – Notifications, approvals, licences, consents, certifications and/or permissions required for your business to operate legally

◼️Licence – Government-issued authorisation for a specific activity

◼️Certification – Formal confirmation that a business meets set standards

◼️Trademark Registration – Legal protection for brand identifiers like names and logos

Watch out for the legal jargon and refer to the knowledge hub for more detailed explanations and resources.

Speed is important for start-ups - but skipping Key Approvals is not lean, it’s reckless. The right approvals secure your right to trade, protect your assets, and build the credibility you need with customers, partners, and investors.