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Cybersecurity breaches are a common threat for businesses. Every organisation or person needs to have some kind of system in place to protect their data and privacy. Although, it takes a certain level of expertise, skills and experience to implement the right cybersecurity measures. As such, cybersecurity companies are hired for this task.
If providing cybersecurity services is something you’ve been thinking about – then you’ve stumbled across the right article. There’s a lot more to starting a cybersecurity company than just the tech stuff though, there’s a legal side that’s needed to secure and protect your company.
Keep reading to understand the legal aspects of starting a cyber security company.
What Does A Cybersecurity Company Do?
A cybersecurity company helps organisations and individuals protect their company from cyber threats such as phishing, spam, malware, data breaches and spoofing. Typically, cybersecurity companies detect potential threats, conduct an analysis and implement measures to minimise those risks.
Steps To Starting Your Cybersecurity Company
Before you start your cybersecurity company it’s important to make sure you’re in the right position to launch a company in the industry. This means understanding the market, having the relevant skills and ensuring you’re surrounding yourself with the right people. Let’s take a closer look at the key steps to starting a cyber security company.
Develop A Business Plan
No matter what kind of company you plan on starting, putting together a business plan is always highly recommended. This is especially important if you plan on starting a cyber security company, as cybersecurity is no small industry. There’s a lot of different types of services you might offer, locations to operate in, potential competition – the list goes on. Doing your due diligence and putting together a business plan is necessary if you want to stay organised and on track with your goals.
Gain Relevant Skills And Certifications
Starting a cybersecurity company is not for amateurs. It requires having the right knowledge and niche skills – make sure you have the necessary qualifications and experience to be running your own cybersecurity company.
Build Your Team
If you plan on hiring people to work with you in your cybersecurity company, then now is a good time to start scouting talent. It’s also an important period to develop your workplace practices and policies.
Remember, as an employer it’s your duty to ensure your employees are being treated fairly and have appropriate working conditions. You will also need to properly communicate your expectations with your employees right from the start, so there’s no misunderstandings about their rights in the workplace. Getting the necessary legal agreements is important here – Employment Contracts and Workplace Policies are extremely helpful in creating a professional work environment.
Registering Your Cybersecurity Company In Australia
The next step to starting your cybersecurity company is getting it registered. This is the part where your company becomes ‘legally official’. Even though this is exciting, it’s wise not to rush through this step or make rash, uninformed decisions. The choices you make during this stage will have a great impact on your cybersecurity company’s future, so it’s better to take the time to properly understand the choices you’re making and get expert help.
Register Your Cybersecurity Company With ASIC
Your cybersecurity company will need to be registered with the Australian Securities and Investments Commission (ASIC). Registering a company with ASIC can get a bit complex as you need to know the legal structure of the company you will be registering, how your company will be governed as well as director and shareholder details.
It’s best to have a legal expert help out with registering your company. Once your cybersecurity company is registered, it will be a legal entity on its own. That means, your company will have many of the legal rights of a person such as owning property, selling property, earning a profit, uncuring debt and a few more things. While a company set up is better for all serious business endeavours, it’s important to get it right from the start to ensure all aspects are aligned to work in your company’s favour.
Register Your Business Name
If you plan on using a name for a business that’s different from your company name, then you will need to register a business name separately. Remember, a company name and a business name are not the same thing. Acquiring a certain company name does not guarantee the same business name or something similar will be available. If you’re keen for both names to match, it’s best to do a bit of research and see what’s available beforehand.
Obtain Necessary Licences And Permits
Obtaining the necessary licences and permits are an important part of starting a cyber security company. Licences and permits vary based on your specific business operations and the location you will be running business from. Doing your research and finding out exactly what permits you need is important here – or chat with a legal expert and they’ll be able to provide you with the necessary details.
The Legal Aspects Of Starting A Cybersecurity Company
Legal protection and compliance are a necessary part of running any company – your cybersecurity company is no exception. Following the right laws and protecting your company through legal measures is necessary to ensure your cybersecurity company is in business for the long run.
What Legal Documents Do I Need?
Legal documents are essential for the protection of your cybersecurity company. They help limit your liabilities, secure your rights and foster a better relationship with company stakeholders – getting them drafted by a legal expert can ensure they are being catered to meet the needs of your cyber security company. A few legal documents to consider getting include:
What Laws And Regulations Must I Follow?
At every stage, your cybersecurity company needs to be in compliance with the relevant laws. Breaking regulations has consequences, ranging from fines to legal penalties. Fortunately, these consequences are easily avoidable – you simply need to be aware of the laws that apply to your cybersecurity company and comply with them. A legal expert can help you better understand your legal compliance objectives as a cybersecurity company. For now, we’ve listed a few regulations you should keep an eye out for.
Employment Law: If you have employees, then it’s important to make sure workplace health and safety standards are being met as well as their rights under relevant employment legislation, such as the Fair Work Act.
Data And Privacy Law: It would be pretty embarrassing for a cybersecurity company to get caught not following data and privacy law – understanding your obligations under data and privacy law is key for legal compliance as well as a good business reputation.
Australian Consumer Law (ACL): Consumers have particular rights in Australia – it’s your duty as a company to uphold them and ensure every customer is being treated in accordance with the ACL.
Intellectual Property (IP) Law: IP law not only protects your cybersecurity company’s materials, it helps ensure you don’t risk misusing others IP (which can have some pretty big consequences). Staying up to date with your IP legals is extremely necessary as you might be dealing with a fair amount of IP as a cybersecurity company.
Industry Specific Regulations: As a cybersecurity company, there might be certain industry regulations and rules you will need to abide by. It’s important to understand them and ensure you’re always in compliance.
Next Steps
When starting our own cyber security company, legal considerations are essential to protect your company and ensure it stands strong. To summarise what we’ve discussed:
- Starting a cybersecurity company requires understanding both the technical and legal aspects of the industry
- Developing a comprehensive business plan is essential to address services, competition, and operational locations
- Relevant skills, certifications, and a skilled team are crucial for success in the cybersecurity field
- Proper registration with the Australian Securities and Investments Commission (ASIC) and obtaining necessary licences and permits are key steps
- Essential legal documents include Service Agreements, Website Terms and Conditions, Privacy Policies, and Non-Disclosure Agreements
- Compliance with employment law, data and privacy law, Australian Consumer Law, intellectual property law, and industry-specific regulations is mandatory
- Consulting legal experts can help navigate complex legal requirements and ensure your cybersecurity company is well-protected
If you would like a consultation on starting a cyber security company, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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