Starting your own business is an exciting experience. At the same time, choosing the right business structure and complying with all legal requirements is hugely important for your potential growth. Therefore you need to carefully consider the exact type of business you want to establish and prepare all relevant documents and information. The possibilities are numerous, thus a thorough analysis of your goals and aspirations is required.
On the more practical side, there are a number of legal requirement and documents that need to be satisfied in order for your application to be approved by the Companies House.
Types of business structures:
- Private Limited Company – perhaps the most widely used and flexible form of business structure, it is an entity that has a separate legal personality, which means that the shareholder’s liability is limited to the amount he has invested. At least one director shall be appointed when registering.
- Limited partnership – this type of business structure require the owners to have at least one general partner and one limited partner. In a limited partnership, the amount of debt is split among the partners depending on their status.
- Limited Liability Partnership – a LLP is more related to a limited company, in the sense that it is has a separate legal personality and the partners’ liability is limited to the amount they have invested.
- Public company – public companies differ from private companies by the fact that their shares are available for sale to the public. It is a good way to raise extra funding, however you need to satisfy more requirements when registering such an entity, as well as after incorporation.
- Charitable structures – there are a number of different charity structures available for registration – Charitable Company, Charitable Incorporated Organization (CIO), Charitable Trust, or an Unincorporated Charitable Association. It all depends on your goals and plans for future development.
As you can see, choosing the right business structure can be a hard task. Do not hesitate to contact us for assistance in making this decisions.
Practical legal requirements:
- Governing documents – In order to incorporate a company, you need to have documents that govern your business. They will depend on the type of business you wish to set up, and if you need the most simple structure, you can adopt the Model documents provided by the Companies House. Consider Articles of Association, Memorandum of Association, Shareholder’s Agreement etc.
- Name – choosing a name for your business may seem an easy task, but it actually requires serious consideration. Not only must the name already not be in use, but some words or symbols are not capable of being registered.
- Address – every business should have an official registered address. Please note that even if you are working from home, you still may need to use a different address if your tenancy agreement forbids carrying out business activities on the premises.
- Shareholders and Directors – with regard to the owners and managers of your business, you need to give information to the Companies House regarding their addresses, occupations, etc. Moreover, for the purposes of organsing your own internal structure within the firm, we recommend having a look at our Starter Packs.
We help entrepreneurs set up their businesses in a legally sound fashion. Book a free consultation now with one of our consultants to receive more information as to how to form your company and start operating. We can assist you in registering your business and provide you with all the necessary documents at exclusive prices.