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The legal function in a company: role and importance

The legal function in a company: contracts, compliance, disputes and intellectual property, and who does what in Belgium: lawyer, notary and in-house counsel.

T

The Monsiegesocial team

Published on 8 mars 2024Updated on 22 juillet 20264 min read
Verified official sources
Hands exchanging legal documents at a meeting, illustrating the legal function in a company

Key takeaways

  • Every company faces legal questions: contracts, compliance, disputes, intellectual property.
  • In Belgium, the lawyer, the notary and the in-house counsel have distinct and often complementary roles.
  • The notary is unavoidable for authentic deeds; the lawyer advises and defends; the in-house counsel supports from within.
  • Legal support is preventive: it secures decisions before problems arise.

Badly framed contracts, ignored regulation, a mishandled dispute: legal blind spots cost companies dearly. The legal function in a company is not reserved for large groups: every company, from its creation, takes decisions that engage its liability. Understanding what legal support is for, which areas it covers and who does what in Belgium helps you surround yourself at the right moment. This article covers the question.

The primary role of the legal function is preventive. Securing a contract before signing it, checking a clause, ensuring the compliance of a practice: these reflexes avoid disputes that are far more costly later. The legal function also protects the company's rights, from its intellectual property to its receivables, and supports it when a conflict arises anyway.

Far from being a brake, good legal support is a factor of serenity and credibility. It reassures partners, clients and investors, and lets managers focus on their activity.

A company's legal needs cover several areas, each calling for its own skills.

What the legal function covers in a company

  • Company law

    Statutes, governance, meeting decisions, share transfers: the company's legal life.

  • Contract law

    Drafting and negotiating commercial contracts, general terms, partnerships.

  • Regulatory compliance

    Data protection (GDPR), UBO register, anti-money-laundering obligations depending on the activity.

  • Intellectual property

    Protection of trademarks, patents and copyrights, and defence in the event of infringement.

  • Employment law

    Employment contracts, relations with employees and compliance with social obligations.

Some of these obligations are specific and often overlooked. The UBO register and the anti-money-laundering procedures are among them: our blog dedicates guides to them.

Who does what in Belgium

The Belgian legal landscape distinguishes several professionals, with complementary roles. Identifying them well avoids calling on the wrong contact.

ProfessionalMain role
NotaryAuthentic deeds: incorporation of a company, modification of the statutes, acts reserved by law
LawyerAdvice, contract drafting, defence in the event of a dispute, support for operations
In-house counselInternal legal advice, employed by the company, member of the Institut des juristes d'entreprise
Indicative allocation of legal roles in Belgium. A single file may mobilise several of these professionals.

The in-house counsel (juriste d'entreprise) deserves a separate mention. Employed by the company and member of the Institut des juristes d'entreprise, they advise from the inside. In Belgium, the legal advice they give to their employer benefits from legal confidentiality, which reinforces their role in risk management.

In-house counsel or external advice: how to surround yourself

The choice depends on the size and the nature of the activity. A small structure most often uses occasional external advice: a notary for company deeds, a lawyer for a sensitive contract or a dispute. It is flexible and proportionate.

As the company grows and legal questions multiply, in-house counsel comes into its own, as a daily relay, while keeping specialist lawyers for complex files. The essential thing is to anticipate: better advice upstream than litigation downstream.

Start on solid legal foundations

Statutes, legal form and registered office: Monsiegesocial supports you in creating your company, the first legal step of your business.

Going further

Frequently asked questions

Why does a company need legal services?

Every company faces legal questions: drafting and negotiating contracts, complying with regulations, managing disputes, protecting intellectual property. Legal support prevents risks, secures decisions and protects the company's rights. It is a pillar of its durability, not a luxury reserved for large groups.

Do you need a lawyer or a notary for your company?

The two have distinct roles. The notary is indispensable for authentic deeds, such as the incorporation of a capital company or a modification of the statutes. The lawyer advises, drafts contracts, defends the company in the event of a dispute and supports its operations. They often act in a complementary way.

What is a juriste d'entreprise (in-house counsel)?

It is a lawyer employed by the company, member of the Institut des juristes d'entreprise. They advise the company from the inside on its contracts, its compliance and its risks. In Belgium, the advice they give to their employer benefits from legal confidentiality, which reinforces their role as internal counsel.

Which legal areas concern a company?

Company law, contract law, employment law, intellectual property, data protection and regulatory compliance. Add to this specific obligations such as the UBO register and anti-money-laundering procedures. Each area calls for its own skills, internal or external.

Do you need in-house counsel or external advice?

It depends on the size and the needs. A small structure generally uses occasional external advice, a lawyer or notary as needed. A larger company can equip itself with in-house counsel, while keeping specialist lawyers for complex files.

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