Tuesday, August 17, 2010

Tips for Buying a Company

When entrepreneurs decide to embark on a business venture, they generally think of it in terms of ‘starting from scratch’. This attitude entails some major disadvantages, such as establishing a customer base, ensuring cash flow, marketing a new product and hiring employees. All these can prove quite tedious, especially since a budding entrepreneur is not backed by either good reputation or a track record. Buying a business proves beneficial in various ways.

Benefits of Buying a Company
If the selection is done carefully, the following are some of the many benefits of buying a company. A business acquisition:
  • generates positive cash from Day One
  • involves less failure risks
  • boasts tried and tested business concept, services, policies and strategies
  • offers established clientele and suppliers
  • has trained employees
  • ensures affordable financing to end the acquisition procedure
  • offers immediate credibility
As opposed to this, start-ups show no promise in terms of customers or number of employees. Rejection of financial requests will not be surprising.

Buying a Company: Essential Considerations
Buying a company can entail several benefits that have the possibility of translating into success if certain points are kept in mind. The considerations are essential because it is important to remember that an existing business will not be sold unless the business is facing some difficulties. After acquisition of an existing company, an entrepreneur has to focus on ridding himself/herself of those obstacles.

Here are some tips to ensure that your choice of company is the best:
  • Consider buying a company within your field of interest and that which best matches your skills and experience.
  • Decide on the size of business you can comfortably handle. The size should be considered in terms of number of employees, location and sales.
  • While fixing the geographical area of the company, assess the labor pool and the cost of operating from that particular area. Calculate the wages, taxes and similar requisites.
After these considerations are looked into, begin your search for an existing company in a local newspaper. You can also place an advertisement in the newspaper yourself. Put all your contacts and networking abilities to use and you are sure to hear of good business openings.

After buying a company, you will have to re-register in case you want changes made to the domain name, or any other aspect. Trust the experts at CompanyFormations247 to complete this task for you quickly and at the best rates.

Tips to Register LTD Company

There are more than 1.15 million limited business organizations operating in the United Kingdom currently. The popularity of a limited company is credited to the benefit of ‘limited liability’, meaning, in case of business failure, the personal assets of the director/s and shareholder/s cannot be touched. Therefore, most entrepreneurs like registering their businesses as limited companies. The incorporation procedure is quite easy, although long and time consuming. Follow the tips given below to register a ltd company.

Register Ltd Company: Business Guide
You can register a ltd company on your own or with the aid of an agent. For registration purposes, you would need to go through the following:

Registration at Companies House: Companies House is the sole authorized registrant of all company formations in the UK. Before a company is established as a limited organization, it needs to be registered with this authority.

Submission of documents: Some of the documents that need to be submitted for registration purposes are:
  • Memorandum of Association: This would include the name and location of the company as well as the type of business.
  • Articles of Association: This document would outline the directors’ powers and shareholder rights, among other things.
  • Form IN01: This has replaced Form 10 and 12 from October 1, 2009 and requires details of the company’s official address, consenting secretary (-ies) and director/s and subscribers. In case the company is limited by shares, the entrepreneur would also have to mention the share capital details.
Legal Structure: Private limited companies and public limited companies have different set ups:
  • Private limited – These cannot put forward shares to the public but are allowed to have as many shareholders as they want. Such setups must have one director and one secretary.
  • Public limited – These can offer shares to raise funds. Such setups require two directors and one secretary.
There are certain requisites of limited companies. Having prior knowledge of these will prove useful after you register a ltd company. The requirements are:
  • Registration at Companies House
  • Annual accounts filing at Companies House
  • Companies House also needs to be updated on a company’s basic details. To this end, the annual returns must be calculated.
  • The HMRC (Her Majesty’s Revenue and Customs) has to be informed about the company’s profits or taxable income for the particular year.
  • The company should file the yearly HMRC corporation tax return and make their due tax payments before the end of nine months.
  • All employees of the company must pay the requisite income tax and the national insurance levied on their income.
Take the aid of the experienced professionals at www.companyformations.co.uk to register your company and begin operating it within 24 hours.

Wednesday, July 14, 2010

Types of Limited Company Formations

Running a business in the current volatile market scenario can prove difficult. It is not unusual to see businesses run into financial difficulties. Therefore, it is recommended that new entrepreneurs choose limited company formations over other kinds of setups, such as sole proprietorships. The primary advantage of limited business setups is that it does not jeopardize the personal assets of the owners, directors or shareholders in the event of failure. However, prior to registration, it is crucial to decide the type of limited company formation one wants to opt for.

Limited Company Formation: 4 Types
Most small or medium-sized business organizations that acquire the limited company status generally become private limited businesses. However, there are essentially four types of limited company formations:

Private company limited by shares: Most private businesses are owned and operated by the shareholders and they are limited by shares. This implies that the liability of each member and shareholder is in proportion to the individual share capital of each.

Private company limited by guarantee: Such setups do not have shares and the managing committee members stand as guarantors in place of shareholders. In case of business failure, the liability of the members is limited to the sum they have decided to contribute as company assets. This business structure is commonly used by commonhold businesses, social enterprises and charities, in order to reduce the personal liability of the directors and trustees.

Private unlimited company: Very few businesses opt to become unlimited companies, since there is no limit to the managing committee members' liability. Such companies may or may not choose to have share capital.

Public limited company (PLC): Such a company setup has a share capital, which restricts the liability of the members to the amount that remains unpaid on the shares. These companies:
  • are allowed to raise cash by selling their shares on the stock market
  • must possess a share capital of a minimum of £50,000 or the same amount in euros
  • have to appoint two directors to run the management as well as a qualified secretary
A private company limited by shares can become a PLC only by re-registering. Naming a company is of great importance as well. Entrepreneurs must avoid names that are offensive or those that bear a resemblance to any other company name in the Companies House index.

You can complete the procedure by yourself or you can select an agent to do it for you. To use the electronic method, you will need an agent. To get the services of the most experienced agent and at the most reasonable rates, contact www.companyformations247.co.uk.

Company Set Up Tips

The year 2009 saw 348,677 businesses being established in England, Wales and Scotland, while 162,329 companies were set up between January and May 2010. These statistics, which have been provided by Companies House and featured on the CompleteFormations.co.uk website, prove that the UK is the hotspot for most entrepreneurial ventures. The primary reason for entrepreneurs preferring the UK over other countries is the stable economy, which is conducive to forming and operating industries. Moreover, the legal procedure for establishing a company in the UK is very simple. Despite this, some company set up tips would prove beneficial.

Company Set Up: Points to Remember
You can handle a company set up all by yourself or you can choose to employ an agency to do the job for you. Whatever the case, there are certain important aspects you must remember:

Document filing: Documents can be filed at Companies House in two ways:

Electronic – This kind of filing requires compliance to specifications listed out by the registrar. The software filing format is present in the rules mentioned in the website. Electronic filing will require $15 as registration fees and £30 for ‘same day’ service.

Paper – Each paper must state the official name and number prominently. However, there are a few exceptions to the rule that are mentioned in the registrar’s rules. The paper must be a plain, white, A4 size, with matt finish. The text must be black, clear and legible. Follow this guideline while filling up the forms:
  • use black ink
  • use bold lettering
  • make sure it is in the portrait format
  • carbon copies will not be accepted
  • refrain from using a dot matrix printer
  • photocopies can result in grey shading, thereby, making the text unclear

Choice of company name: An entrepreneur can select a company name but it has to be approved by the Secretary of State before it can be utilized. Some restrictions are applied on usage of names. Proposed names will be barred if there is:
  • any suggested connection with Her Majesty’s government, local or public authority, or any devolved administration;
  • inclusion of sensitive words and expressions

There are some other clauses in addition to the aforementioned ones. They are:
  • Insertion of words denoting a particular business type, especially if the business does not belong to the category. For instance, the inappropriate use of ‘limited’, ‘Limited Partnership’ or ‘unlimited’.
  • Identical to any other company name mentioned in the Companies House index.

Take the aid of CompanyFormations247.co.uk, one of the most renowned agencies in the UK, to fill up the forms.

Roles of Companies House

Companies House, an executive agency of the UK government, is the authorized registrar of business incorporations in England, Scotland, Wales and Northern Ireland. Its main headquarters are in Cardiff, while the operational offices are in Belfast, Edinburgh as well as London. As a state-funded body, Companies House performs several vital functions, including provision of company registration information to the public, ensuring compliance and enforcing rules.

Companies House: Roles and Duties
Apart from validating and authorizing company formation applications and providing a unique company number, Companies House also:

Regulates statutory accounts: All companies are legally bound to prepare and submit annual statutory account, which is handled by the sole registration authority. The submission deadlines differ according to the type of company. For example, Public Limited business houses are allowed a shorter time period to complete their financial statements than the private entities. Companies House verifies that the submitted documents are prepared in compliance with the required format for the company type in question. It checks for any exemptions related to small and medium-sized businesses.

Ensures submission of annual returns: Submission of yearly returns is another legal requisite of companies functioning in the UK. Firms are supposed to detail information about the directors, secretary, shareholders as well as their current registered address. Companies House takes care of all this.

Tracks company changes: Certain circumstances, such as transfer of powers, appointment of a new director or secretary, change of official address and other similar alterations, require notifying Companies House about them. The notifications can be made electronically or through paper. Forms 288a, 288b and 287 need to be used to make and report the changes. The Registrar of Companies will offer the validation stamp if the procedure is completed properly. Companies House would also file and maintain a record of all these changes.
Provides business information: This authority offers facilities allowing the general public access to necessary information about registered UK companies. The details can be accessed via pots or electronically, the latter being the most convenient method of procuring information. However, a company director’s residential address is no longer displayed in the public domain. This has been as a security measure for celebrities, high profile businessmen and those operating in sensitive areas. Anyone needing access to such information has to apply to the court with evidence of genuine requirement.

You can submit your application to this supreme company incorporation authority via an agent, the easier and time-effective option. Choose the experienced professionals at www.companyformations247.co.uk to complete this task for you.

Thursday, May 6, 2010

Benefits and Considerations of Setting up a Ltd Company

With 32,091 companies operating in the country, the United Kingdom is definitely the industrial hub of the world, according to the February 2010 reports of the Companies House. Business organizations that are established as limited companies take on a legal identity, separate from their owners or shareholders to become a corporation. In this way, setting up a Ltd company proves advantageous to the entrepreneur.

There are three types of limited companies:
  • Private companies that are limited by shares. These offer limited liability to the entrepreneurs and shareholders.
  • Private companies that are limited by guarantee do not have share capital. It is guaranteed by the members of the company.
  • Public limited company, in which the payment on share amount is handled by the shareholders.
Benefits of Setting up a Ltd Company
For setting up a Ltd company one has to submit the required documents and data to the sole authority of company formation in the UK, the Companies House. In such an establishment, the entrepreneur’s liability is limited. In this way, the owner has to tackle less responsibility of debt situations than an entrepreneur of an unlimited company. The following are some of the main benefits enjoyed by a limited company:
  • Personal liability or other risks can be avoided to a great extent
  • Loans for business purposes can be availed easily
  • A Ltd company enjoys more credibility
  • Such a company cannot appoint Nominee Company officers or shareholders
  • Records of business formalities are not required to be maintained
  • The option of ‘pass through’ taxation
Considerations before Setting up a Ltd Company
There are certain considerations to be kept in mind while setting up a Ltd company. The most important of all is filling up the Memorandum of Association. This is the most crucial document and, therefore, an entrepreneur has to ensure the incorporation of the following points:
  • ‘Ltd’ has to be mentioned after the company’s name. The option of not applying the word can be granted with specific exemptions only.
  • The location of the company had to be mentioned.
  • Company objectives need to be mentioned, along with all the activities that the company might engage in.
  • Subscription of the initial members, along with their names, addresses and description must be mentioned.
Apart from this, one also has to make sure that the company name is different from existing or booked company names. Several such clauses and conditions can be easily completed with professional aid. For more information about the registration procedure, visit www.companyformations247.co.uk.

Essentials to Register a Company

Statistics provided by the Companies House, the UK, the official registrant of businesses houses in England, Scotland and Wales, show that 28,072 companies were formed in the United Kingdom in January 2010 and 32,091 companies came into being in February 2010. From small business enterprises to the big industrial brands, all want to make their presence felt in this region. To register a company in the UK, one has to simply contact the Companies House and adhere to the established rules and regulations. Getting in touch via the internet has become the preferred option, rather than visiting in person.

Requisite Paperwork to Register a Company
One could register a company under the Section 10 of the Companies Act, 1985 until October 1, 2009. After this, Section 8 of the Companies Act, 2006, was implemented. Some of the documents that have to be presented before the Registrar of Companies include:

Memorandum of Association: This form must compulsorily have the following information:
  • Company’s name
  • Office address
  • Business objectives
The aim of establishing a business organization does not require elaboration. The objective can simply be to continue operating as a general commercial organization. This memorandum has to contain the signature of each of the subscribers, which must be attested by a witness.

Articles of Association: This document establishes the ground rules that would determine the company’s internal affairs management. This document also requires the subscriber’s signature and the attestation of a witness before it is delivered to the Registrar.

Form 10: This specifies the:
  • Facts about the first directors, including the director/s names, residential addresses, date of birth, their occupation as well as information of any job profiles they have held in the last five years.
  • Information regarding the secretary
  • Registered official address
Each of the appointed officers and subscribers has to sign and cite the date/s of signature.

Form 12: This is a constitutional declaration of compliance with legal requirements of the company incorporation. The form needs to have the signature of the solicitor who helps in the business incorporation process. Alternatively, it also has to be signed by one director or even the secretary whose name is contained in the form. This document may be signed by any of the following:
  • commissioner for oaths
  • a notary public
  • a justice of the peace
  • a solicitor
For completing the entire procedure, you can hire agents. One of the oldest and the best incorporation agencies is Company Formations 24.7. To know about the expert services offered, visit www.companyformations247.co.uk.