Here’s a story you’ve probably heard before — or maybe lived.
Two people start something together. They’re excited. They trust each other. Paperwork feels like it’s for big corporations with legal departments, not for a startup running on energy drinks and a shared vision.
Then things get complicated. A supplier doesn’t deliver. A business partner wants out. A freelancer claims they own the work they did for you. And suddenly that paperwork you skipped starts to feel a lot more important.
The truth is, most small business legal problems aren’t really legal problems. They’re trust problems — where trust was the only agreement, and trust wasn’t enough.
The good news? The fix is simpler than you think. And it doesn’t require a law firm on retainer.
When you’re just getting started, contracts can feel like overkill. You’re working with people you know. You’re moving fast. Formality feels awkward.
But here’s what founders often miss: a contract doesn’t signal that you don’t trust someone. It means both of you are working from the same record.
When memories differ — and they often do — a signed agreement is the only thing that settles it cleanly.
Without one? You’re in a negotiation. And those are expensive, even when everyone involved is being completely honest.
Not every business needs every contract from day one. But most South African small businesses need more than they think. Here’s how to check where you stand.
Shareholders’ Agreement – If you have co-founders or business partners, this is non-negotiable. It sets out who owns what, how decisions are made, what happens if someone wants to leave, and how disputes get resolved. A verbal agreement on a 50/50 split will not protect you when one person stops pulling their weight — or wants out.
NDA (Non-Disclosure Agreement) – Sharing your business idea with a developer, a potential partner, or an investor? An NDA keeps your confidential information confidential. Get it signed before the conversation, not after.
This is where a lot of small businesses quietly create legal problems they won’t discover for years.
Employment Contract – Required for all employees. Ideally it should be in writing. It must cover role, remuneration, leave, and notice periods. A verbal agreement or a copied-and-pasted template from the internet will not hold up under scrutiny.
Independent Contractor Agreement – Using a freelancer or contractor? The label matters. A contractor who is actually performing the role of an employee — same hours, same control, same tools — can be reclassified as an employee. That creates liability for unpaid leave, UIF contributions, and more. A properly drafted contractor agreement makes the distinction clear.
Supplier Agreement – Buying stock or services from a third party? A supplier agreement sets out delivery terms, quality standards, payment terms, and recourse if they don’t deliver. If your whole business depends on a supplier, you need this in writing.
Terms and Conditions – If you sell products or services — online or in person — your T&Cs tell customers the rules. They cover payment, delivery, returns, liability, and dispute resolution. Without them, you’re operating on assumption.
Just getting started? Our Startup Legal e-book walks you through the contracts every new business needs, in plain language. Download the Startup eBook →
Running an established SME? Our SME e-book covers the full picture — from employment to compliance to supplier relationships. Download the SME eBook →
Step 1: Take our Free 2-minute Compliance Assessment
Step 2: Download what’s free. Start with our free templates — Offer to Purchase, BBBEE affidavits — at no cost. Your first download is also free when you Register so you can try before you commit to anything.
Step 3: Use a subscription for the rest. Our plans start from R99/month for startups without employees and R249/month for businesses with staff. That gives you access to our full library of 48+ lawyer-drafted templates, updated in real time as South African law changes.
Step 4: Focus on growing your business!
An Agreement regulating the terms and conditions of purchase for a fixed property (free-standing house).
Spotify – Offers to Purchase
An Agreement regulating the terms and conditions of purchase for a fixed property (apartment or flat/sectional title).
Spotify – Offers to Purchase
A confirmation of BBBEE status is available to businesses with a turnover of less than R10 million per annum. The document enjoys the same recognition as a BBBEE certificate, but is issued as an affidavit.
Spotify – B-BBEE and the SME
A confirmation of BBBEE status is available to businesses with a turnover of less than R50 million per annum and not subject to specific sector codes, provided that the business has 51% or more black ownership. The document enjoys the same recognition as a BBBEE certificate, but is issued as a certificate.
Spotify – B-BBEE and the SME
