What is the difference between commercial & corporate law and Which one do you need?

 

Corporate and Commercial laws are two different things and regulate different fields. Many people believe that commercial law and corporate laws are somewhat similar. However, that is not true; both corporate and commercial law regulates the business world. Both laws are developed to provide structure and consistency to businesses for smooth operations in the business world. Lawyers like Arthur Liangfei Tan can handle both for your business. Both laws are required at different places, whether a small business or a large corporation.

 

Corporate Law

As the name suggests, corporate law covers corporations, artificial or separate entities. Corporate law is applicable where the law treats a company as a separate legal individual or person. Corporate laws include acquiring rights, properties, legal obligations for corporations, and laws on legal battles between corporations. The procedure or categories covered in corporate laws are:

 

●     Forming and dissolving a corporation.

●     Changes in a corporation- It usually happens when new board members are added, or if there is a change in ownership, or a change in decision-making executives, etc.

●     Distributing profits.

●     Governing exercise of powers of the corporation.

●     Raising capital for corporations.

 

Corporate laws deal with all rules and regulations, and procedures involved in regulating a business from start to end. These involve all legal contracts, establishments, and legal battles. Usually, corporate laws have a direct impact on business and the country's economy because corporations acquire a significant part of monetary deals and business.

 

A corporate lawyer, Arthur L. Tan can help ensure legal formalities are followed; contracts do not have any hidden loopholes or vulnerabilities, and more. Usually, companies have in-house lawyers; if not, they connect with lawyers for the long term.

 

Commercial Law

Commercial Law deals with transactions that involve the sale and purchase of goods or businesses. In this law business, transactions and exchanges are involved. Commercial law also includes leasing property, litigation disputes, franchising, employee contracts, financing, and more. Commercial laws intersect and apply with other laws, such as property laws, commercial issues, franchising laws, intellectual property laws, labor laws, etc.

 

Corporate law is more focused and specific for companies, while commercial law is broad and deals with many subcategories.

 

Often due to complexities and overlapping, companies find it difficult to understand. That's why hiring lawyers is the best way. A lawyer like Arthur L. Tan understands both commercial and corporate laws and can help you deal with legal issues better.

 

In the business world, dealing with rules and regulations is highly critical to avoid any legal battle later. Depending on your business requirement and the issue you are dealing with, commercial and corporate laws are applicable.

 

Conclusion: Both Corporate and commercial laws have their own importance in different places. However, corporate law is more specific, while commercial law is broad. But both laws are applicable to some aspects of the business.

 

For businesses dealing with legal battles, large investment deals, or contracts, you can consult Arthur Liangfei Tan to protect their business