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3D printing has proven useful in many different industries — from healthcare to fashion. However, if you have been thinking about starting your own 3D printing business, you’ll need more than a working 3D printer.
A 3D printing business has the potential to provide a valuable service to its clients. For the business to function smoothly, it needs to be well protected and set up the right way.
That’s what we’re here for – keep reading to know about the legal side to starting a 3D printing business.
How Does 3D Printing Work?
3D printing utilises special software and materials to create (or ‘print out’) a three-dimensional object. Essentially, the details of the object are provided to a computer, which instructs the printer to build the product layer by layer.
The process requires having the right kind of technology and materials. Additionally, the materials required differ based on the specific needs of each print. You might consider specialising in a particular niche of 3D printing so your business isn’t stretched out too thin. It’s always a good idea to create a business plan before starting your 3D printing business – that way you’ll have better clarity on the direction of your business.
How To Start A 3D Printing Business: A Legal Guide
When you’re confident in your ideas and the direction you want to take your 3D printing business, it’s time to start the process of setting it up. Just like bringing a print to life, a business needs to be planned and built layer by layer. Let’s take a closer look at what you need to do to bring your 3D printing business to life.
Register Your 3D Printing Business
To start a business in New Zealand, you need to register it. A 3D printing business is no exception to that rule. To register a business, you must first decide on a legal structure for your business. The legal structure you choose for your business will determine the steps you need to take to register your business. The most commonly registered business legal structures in New Zealand are a sole trader, partnership, and a company.
Here’s what you need to know for each one.
Sole Trader Business
- Easy Setup Process: To register as a sole trader, you need to apply for a New Zealand Business Number (NZBN). The application is relatively simple, free, and can be completed online
- Register a Business Name: You only need to register a business name if you plan to use a name other than your personal name to run your business
- Legal Protection: A sole trader structure offers very little legal protection for your personal assets. Once you register as a sole trader, the business is legally attached to you, meaning you will likely be personally liable for all aspects of the business
Partnership Business
- Easy Setup Process: To register a partnership business, you need to obtain a New Zealand Business Number (NZBN) for the business
- Register a Business Name: A business name must be registered unless you plan to use the names of all the partners to run the business
- Legal Protection: In a partnership, the business is legally attached to all the partners. Therefore, if the business faces financial or legal difficulties, each partner may be personally liable
Company:
- More Complex Setup Process: Setting up a company requires registration with the New Zealand Companies Office, which involves completing more detailed forms. This process can be tricky if you’re not familiar with it
- Ongoing Compliance: Companies are subject to strict regulations. To run a company, you must adhere to various legal obligations, including paying annual fees, conducting audits, and notifying the Companies Office of any changes to the company structure or details
- Better Legal Protection: A company is a separate legal entity, which means you have limited liability. This structure offers better protection for your personal assets if the company faces financial or legal issues
Get Your Legal Agreements Drafted
The next step in setting up your 3D printing company is to get the right legal agreements drafted. Contracts and other legal documents play a crucial role in securing your business, reducing the risk of disputes, protecting your ownership rights, and limiting your liabilities. All of these elements are essential for running a well-functioning business. Here are a few legal agreements you may want to consider:
- Service Agreement: When you print something for a client, it’s important to have a formal agreement to ensure both parties clearly understand the terms, responsibilities, and expectations. This helps to avoid misunderstandings and sets a clear scope of the service
- Supply Agreement: Having the right materials is essential for 3D printing. If you rely on a supplier, it’s crucial to have an agreement that covers details like delivery schedules, payment terms, and quality standards
- Non-Disclosure Agreement (NDA): Confidentiality is important, especially if your clients share sensitive designs or proprietary information. An NDA helps protect your business by ensuring that all parties keep this information confidential
- Employment Agreement: If you plan to hire staff, having a solid employment agreement will define the terms of employment, including roles, responsibilities, remuneration, and other important conditions
- Workplace Policy: Establishing clear workplace policies ensures that employees understand the standards of conduct, safety procedures, and other guidelines necessary for a smooth operation
Secure Your 3D Printing Business’s IP
Intellectual property (IP) protection is an important factor to consider when setting up your 3D printing business. When working with other people’s designs or allowing others to use yours, an IP Licence is crucial. It can help legally define ownership and usage rights, ensuring there’s no miscommunication about what belongs to whom.
Additionally, since there are many other 3D printing businesses out there, you may want to build a unique brand identity by creating a distinctive logo or coming up with an original business name. It’s important to secure your legal rights over these forms of IP by registering them as Trade Marks. Furthermore, if you have original designs or patterns, consider having them patented with the New Zealand Intellectual Property Office (IPONZ) to ensure your legal rights are always protected.
Can I Start My 3D Printing Business From Home?
Yes, you can always start your 3D printing business from home. However, there are several factors you will need to consider.
First, it’s important to check whether your local council’s zoning regulations allow you to operate a 3D printing business from your home. A bit of research should provide the answers you need — make sure to look into any necessary permits or licences as well.
Next, you’ll need to think about the logistical aspects. To successfully run a 3D printing business from home, you’ll need a strong website and a reliable system for shipping orders to your customers. Having clear Website Terms and Conditions can help manage customer expectations, secure revenue streams, and give you control where necessary. It can also limit your liabilities by covering key areas such as ownership, terms of use, and payment methods.
You will also need a Privacy Policy on your website since you’ll likely be collecting personal information from your customers. Additionally, consider adding a Cookie Policy for extra transparency, even though it isn’t legally required.
Having a secure online presence is crucial if you want to run your 3D printing business from home (or have a business website) so it’s important to get the right legal protection in place from the start.
What Other Laws Do I Need To Think About When Starting A 3D Printing Business?
We’ve covered a few key legal areas that will impact your 3D printing business — however, they aren’t the only regulations you’ll need to consider. Starting a business means complying with the relevant laws. The specific regulations your 3D printing business will need to follow depend on factors such as whether you plan to hire employees, and if you’ll be engaging in marketing strategies, such as posting online advertisements. Some regulations, like those under New Zealand’s Consumer Guarantees Act, will apply to your business regardless of these factors. Here are a few regulations you may want to consider:
- Employment Law
- Workplace Health and Safety
- Industry Rules and Regulations
- Consumer Guarantees Act
- Marketing and Advertising Laws
It’s a good idea to seek expert advice on legal compliance when starting your business. This way, you’ll be well aware of the laws impacting your business and will know how to operate in a legally compliant manner.
Key Takeaways
When starting a 3D printing business, it’s important to be aware of the laws and regulations that impact it. Consider enlisting the help of a legal expert to give your business the best chance at success. To summarise what we’ve discussed:
- A 3D printing business needs more than just a 3D printer; it requires careful planning, a solid business model, and legal protections
- Choose an appropriate business structure (e.g., sole trader, partnership, company) and register your business accordingly to manage liability and compliance needs
- Draft key legal agreements like service agreements, supply agreements, and NDAs to reduce disputes, secure business terms, and protect confidentiality
- Intellectual property (IP) protection is essential; consider registering your brand name and logo as trademarks and patent any unique designs to secure ownership
- Starting a 3D printing business from home is possible but may require zoning checks, permits, and a strong online presence with clear website policies
- Be mindful of additional regulations, including employment law, workplace health and safety, consumer law, and advertising laws, to maintain legal compliance
- Consulting a legal expert can ensure your business is fully compliant and set up for long-term success
If you would like a consultation on starting a 3D printing business, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
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