Module 6: Legal and finances (html version)

Our project

Sustainable development for the inclusion of migrating and refugee populations can only be attained if women are involved, as mothers, as teachers, as entrepreneurs and/or when a gender sensitive policy environment is created for them to influence community and social policies at the higher level. Women are the primary victims of the intertwined causes of conflicts, underdevelopment and migration. To address these issues, in a sustainable and humanitarian way, migrants should be offered assistance in building a new life in the respective host countries by developing, testing and implement new concepts of train the trainer programs for online training offering migrant women the opportunity to develop their entrepreneurial skills. That is the aim of the 241 project.

01 Introduction

Many people think it is hard to start a business. 

They are scared of the legal and financial structures. 

It is up to you how much risk you wish to take. 

It depends on your type of funding, and the chance of creating damages with your product or service.

In this module you will be given an overview of legal and financial structures in a clear and simple manner. So you can decide for yourself! 

02 Finances

Types of funding

  • Bootstraping: You finance everything yourself. This involves the least risks.
  • Starters loan: You get a loan from a bank or financial institute. The risk is that you cannot pay back the loan or interest.
  • Starters subsidy: You apply for a subsidy from Government, EU, or NGO. Mostly no payback obligation, provided that you meet the requirements.
  • Crowdfunding / saving group: You get small amounts of cash from a group of investors/lenders. Dependent on the conditions, you might have to pay back the investments or pay interest.

Business Plan

In order to understand and to communicate your financial needs on the short term, middle long term and long term, you need to make a business plan. 

A business plan describes: 

  1. the different ways in which money will be earned, 
  2. the amount of time it will take to earn this money,
  3. the costs that have to be made to earn this money.


Make a plan for the finances of your business

  1. for one year 
  2. for five years
  3. for ten years

Determine how much funding you will need, and how you will acquire that money.

03 Conditions

Necessary conditions 

As a business owner you need to have several conditions in place:

  1. towards your customers
  2. towards your suppliers
  3. towards your employees
  4. towards your partners

Most important Conditions

  • Liability: Try to exclude liability as much as legally possible, or take out insurance.
  • Payment: Point out when you wish to get paid for your products/services.
  • Delivery: When and how will the delivery take place?
  • Intellectual property rights: Who will be the owner of the results of the services?


Determine for each of the relations – if applicable – what the conditions need to be:

CustomerWhen and howWhen and howWhen and who
SupplierWhen and howWhen and howWhen and who
EmployeeWhen and howWhen and howWhen and who
PartnerWhen and howWhen and howWhen and who
Table to be used as template

04 Accounting

Why do I need ‘Accounting’?

Accounting gives you the opportunity to steer your company in the right direction. 

Accounting gives you the opportunity to show third parties (like the Tax Agency, or a Financer) your costs and income of the previous period.

What do I ‘Account for’?

In Accounting, the following activities play a role:

  1. Expenses for office and travel
  2. Hours spent
  3. Fiscal transparency

All these activities can be tracked online in an app (check the app store for many free apps), or via the websites of banks and Tax Agency.

Make reservations for taxes

When receiving (a) payment(s) for your products or services, set aside the amount that has to be paid as taxes (VAT and Income Tax). 

Check the current percentages in your country at the date of receipt of the payment, and put the amount in a different bank account. Taxes have to be paid much later, so don’t mistake this for money to be spend freely.   

05 Step by step

  1. Determine whether you need external finance, and how you will get it
  2. Determine which contracts and general conditions you will need to have
  3. Make an overview of expected income and costs 
  4. Make a reservation for taxes

Thank you very much for taking on the Course!!
Join Us for the rest of our Modules on our website

This Report is released under a Creative Commons Attribution 4.0 International License. 
You are free to:
Share: copy and redistribute the material in any medium or format.
Adapt: remix, transform, and build upon the material for any purpose, even commercially. The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
Share Alike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.

The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.