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Tips for Buying a Company

2010-08-17T00:58:00.000-07:00

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

2010-08-17T00:55:00.000-07:00

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.

Types of Limited Company Formations

2010-07-14T01:55:00.000-07:00

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

2010-07-14T01:53:00.000-07:00

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

2010-07-14T01:48:00.000-07:00

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.

Benefits and Considerations of Setting up a Ltd Company

2010-05-06T03:58:00.000-07:00

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

2010-05-06T03:55:00.000-07:00

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.

Is Company House the Supreme Authority for Company Registration?

2010-05-06T03:51:00.000-07:00

The UK had introduced a company formation and registration system in 1844. Since the year 2009, company registration affairs began to be dealt with according to the rules mentioned in the Companies Act 2006. Prior to this, business details were filed according to the laws of the Companies Act 1985. Company House, an executive agency of the UK government that operates under the Department for Business, Innovation and Skills (BIS), takes care of business registrations. All limited companies established in England, Wales and Scotland are registered at this agency. More than 2.6 million limited companies function in Great Britain and each year witnesses the incorporation of over 300,000 new business houses.

Functions of Company House

The three major functions of Company House include:
incorporation and dissolution of limited companies
examination and filing of company information submitted under the Companies Act
making all this information accessible to the public

General Information about Company House

Directors’ residential address not in public domain: Since the enforcement of the Companies Act 2006 on October 1, 2009, the home addresses of company directors are not available for public review like it was before. Previously, the obligation to file residential addresses while registering businesses had proven disadvantageous to celebrities and those business men functioning in sensitive locations. The director’s address will be displayed only if liquidators, creditors or shareholders request for disclosure of address after providing substantial evidence of the company address being ineffective. The address can also be disclosed in case it is necessitated by a decree of court.

Types of companies: The following are some of the types of companies recognized by Company House:

Public Limited Company (PLC)
Private company limited by shares (Ltd)
Private company limited by guarantee
Unlimited company
Limited Liability Partnership (LLP)
Limited partnership (LP)
Societas Europaea (SE)
Companies registered by Royal Charter (RC)
Community interest company

The Registrar of Companies: The Registrar for England and Wales is Gareth Jones. He is also Chief Executive of Company House. His office is in Cardiff. The Registrar for Scotland is Dorothy Blair and her office is in Edinburgh. The Registrar for Northern Ireland, Helen Shilliday, is based in Belfast. Apart from this, Company House has an Information Center in London.

The best way to register a company is with the help of online registration agents, such as Company Formations 24.7. The expert team at www.companyformations247.co.uk specializes in assisting entrepreneurs with company formation procedures, administration and information services and offers its services for all stages of the incorporation process.

Facts about Business Incorporation

2010-03-09T02:24:00.000-08:00

Every business house aspires to become a corporation so that it is recognized by the law as a legal entity. The process of business incorporation is moderately easy and the authorization is recognized all over the world. The United Kingdom witnesses the registration of several companies and corporations every year. The year 2009 saw the establishment of 233,770 companies in the UK, while the previous year had witnessed the growth of 354,761 companies.

The following are some documents to be submitted to the Companies House for incorporating your business:

Memorandum of Association
Articles of Association
Forms 10 and 12

Business Incorporation: Requirements
The following are an overview of the attributes essential for business incorporation in the UK:

The company must have a director responsible for day-to-day operations and decision-making for immediate and future benefits.
In a limited shares company, at least one shareholder is required. Often, this shareholder doubles up as the company director.
A means to pay the business registration fee is required. You must submit at least £24.99 to Registrar. A debit or credit card is necessary for the purpose.
The answers to the security questions, the director’s and shareholder’s signature is crucial. Some questions may be personal, but correct information is imperative.

Business Incorporation: Requisites for Offshore Companies
For offshore business incorporation, it is not important for the business head to be present in person. One simply has to submit an online application form and courier or fax copies of the required documents. Apart from this, the offshore company will also have to:

Open a bank account in the UK
Submit a clear copy of the driving license, passport or national ID to the agent of the registration enterprise so that the company has a valid evidence of the directors and shareholders they incorporated.
Submit a Beneficial Owners Declaration or BOD informing the registration agent about the owner’s residence, career, current job profile and intended profile in the new organization.

Company Formations 24.7 is a company formation agent who has incorporated several business houses, and has aided them in deciding the name and structure for their businesses. So, if you too want to have your business incorporated, visit the agent’s website www.companyformations247.co.uk. The agent also offers attractive discounts and benefits for entrepreneurs who avail their services right now! Certain attractive benefits include opening a Barclays bank account and mailing of certificates of incorporation to the client.

New Business Set Up

2010-03-09T02:21:00.000-08:00

There are several considerations for the success of a new business setup. Two most important requirements for the successful establishment and maintenance of a business are:

A business plan
Marketing and promotion

Financing is one of the foremost requisites for a business set up. To secure funds, entrepreneurs must formulate a comprehensive business plan. While most entrepreneurs chalk out a proper business plan, not many take care to promote their businesses sufficiently. Appropriate promotion of business is a must to ensure good turnover.

New Business Set Up: A Successful Plan
Any financial institution or bank will demand a detailed business plan in black and white, before extending financial support to a new business set up. Every small, medium and large scale company must also create a financial budget for the approaching year. The lack of a comprehensive and clear plan is an indication of a lack of foresight, which may even prevent a bank from sanctioning loans to an entrepreneur.

A well-structured business plan must contain:

The business purpose
A short synopsis of the organizational setup divided into sections, such as sales and marketing, production, purchasing, personnel and finance.
Details of the start up and a mention of the clauses that help achieve company objectives.

The process of preparing a business plan is crucial. If the business is established after thorough research and deliberation, it will suffer only fewer setbacks and be more successful.

New Business Set Up: Importance of Promotion
Whatever your kind of business set up, it is vital that you embark on strategic marketing campaigns. That is the only way of informing your target audience about your presence. You can also promote your business by distributing business cards, brochures, catalogs or via posting articles on the Internet.

However, the most successful promotional campaign is designed to cater to the target audience. You have to be clear about:

Your target customer’s needs
Ways of customizing your campaign to attract them
Methods of allocating the product at the earliest

In this competition-ridden world, it is important that these three criteria be considered and fulfilled. Perhaps, a sample survey or a trail group can help you to achieve this. A new business set up can hire professional company formation agencies to achieve this goal. If you too want assistance in structuring or promoting your business or company set up, visit www.companyformations247.co.uk.

Choosing a Company Name in UK

2010-03-09T02:17:00.000-08:00

Choosing a company name is one of the first steps in starting your own business. Different countries have different regulating agencies responsible for registering companies. In the UK, for instance, once you choose the name for your business or company, you must register it with the Companies House.

Since the success of your business also depends on the name of your company, special care must be taken while selecting one. A well-chosen name allows for easy registration and helps create a strong brand identity.

Choosing a Company Name for Easy Registration
While choosing a company name, ensure the following points for easy registration:

The Companies House in the UK maintains an index of registered companies in England, Wales, Scotland or Northern Ireland. After choosing a name for your company, enquire with the Companies House either on phone or on the Internet about the name availability. If the name already exists, search and choose another name.
There are some restricted terms that signify government institutions or agencies. Avoid using these terms, which include British, national, international, government and institution. Ensure before registration that your chosen name pertains to these guidelines, to avoid problems or difficulty at later stages due to name rejection.
The Intellectual Property Office maintains a Trade Marks Register. Refer to this list to find out if your business name conflicts with any of the existing registered trademarks.

Choosing a Company Name for a Strong Brand
Your company name can ensure a robust brand identity for your business, if you:

Choose a name that reflects the nature of your business. For instance, if you are in a business that provides a particular service, your business name must generate the image of that service in the listeners’ minds. You can use your creativity to find some catchy names and phrases for your company. Researching on the Internet can also help you find a suitable name for your company.
Try to choose a name with visual connotations. Such visual connotations increase the recall value of your business name, thus creating a strong brand identity. A strong brand identity, in turn, helps create successful businesses.

It is also a good idea to seek the help of professionals or agents in choosing a company name. These agents assist you in all matters related to company formation and registration. Company Formations 247 is a trusted UK-based agent well-known for providing necessary assistance in registering new businesses.

Steps to Register a Business in UK

2010-02-11T02:50:00.000-08:00

Entrepreneurs can register a business in UK to start their own companies. However, to start a company, they must be aware of the laws of the land, the Companies Acts and the specifications of the Companies House.

Steps to Register a Business in UK
Entrepreneurs can do the following to register a business in UK:

Decide the structure of your business. There are various types of companies, such as private company limited by guarantees, private company limited by shares, private limited company and private unlimited company. Each type will require a different licensing formality.
Based on your business objectives, decide which type to choose. The registration process, regulatory approvals and tax liability of your company depends on the type of company you choose.
Choose a suitable name for your company reflecting your business objects.
Prepare the memorandum of association, articles of association. Fill in Forms 10 and 12, and appoint the secretary and directors of the company.
Submit all these documents to the Companies House in proper order. You can do your filing either manually or electronically. Electronic filing is preferred these days due to the ease and expediency

Register a Business in UK: Role of the Companies House
The Companies House is the official agency in the UK authorised to register a business. It maintains records of all types of companies existing in the UK. It issues revised specifications from time to time, regarding new company formation. Entrepreneurs must keep themselves updated about these for quick establishment of their businesses.

Although you can complete the registration formalities yourself, seeking professional help reduces the processing time and makes the process smooth. Since registering a company in UK also involves other issues, like deciding the right company structure, an error might lead to delay in company registration and business losses. For finding a reliable company formation agent, refer to the authorized agents list released by the Companies House.

A reputed agent to contact for registering a company in UK is Company Formations 24.7. Their professional assistance helps you to register a business in UK in no time. The agent also provides you a host of other services, including the appointment of directors, secretary and shareholders for registration purposes. Once the process is complete, you get an instant email confirmation. You can also opt for obtaining the electronic copies of the certificate of incorporation and the Memorandum of Association and Articles of Association.

Setup a Company in UK: Important Facts

2010-02-11T02:46:00.000-08:00

Over the years, the United Kingdom has emerged as a business hub in the world due to its stable political conditions and consistent economic expansion. The transparent, open, and business-friendly environment of the UK is highly conducive to industrial growth. In September 2009 alone, a total of 32,270 companies were formed in England, Wales and Scotland. More than 2.6 million companies operate in the entire region. Hence, to ensure the best rewards for your hard work, setup a company in UK by fulfilling the simple and convenient legal formalities in the country.

Setup a Company in UK: The Requisite Steps
Here are some essential steps to setup a company in UK:

Decide the organizational structure of your proposed business.
Choose an appropriate and, if possible, unique name for your company.
Check the availability of the proposed name at the company formation regulatory agencies.
After finalizing the company name, find a location for your company’s registered office.
Formulate the objectives of the company, and the Memorandum and Articles of Association.
Appoint the secretary and directors of the company.
File form numbers 10 and 12.
Submit all documents with the registration fee, as applicable.

Setup a Company in UK: Conventional versus Electronic Method
There are two methods of applying to setup a company in UK. These are:

Conventional method – This necessitates the filling of forms and documents on paper, which is then submitted to the Companies House.
Electronic filing – This is the more popular of the two, since it involves electronic filling of forms and submission to the Companies House. In fact, the new company is set up in a single day.

Setup a Company in UK: Popularity of the Electronic Method
The electronic filing method pronounces a convenient and quick way of establishing a company in the country. In this case, you do not need to submit Form 10. Also, all documents and forms are submitted in a digital format. The Companies House, responsible for company registration and record maintenance, authorizes several agents to aid new companies in filing for registration. This saves considerable amount of effort and time for company owners.

Company formation agents authorized by the Companies House provide several services related to the establishment of a company. For instance, they provide assistance in filing documents, in deciding organizational structure and company name and type, and suggesting promotional strategies. A reputed agent in the UK that provides all these services and more at reasonable prices is Company Formations 247. Visit the site and know more to benefit more.

Formalities in Limited Company Registration

2010-01-11T01:26:00.000-08:00

Not for no reason has the United Kingdom become the nucleus of business activities, with more that 2.6 million companies operating in the region as of October 2009. The country’s stable political and economic status, along with the convenient administrative procedures, makes the UK an ideal place to start a company. All company formations are looked into by the Companies House. For a limited company registration, entrepreneurs have to provide the requisite information and documents to the Companies House.

Limited Company Registration: Memorandum of Association
Every limited company registration requires the submission of the Memorandum of Association, along with the registration forms. The Memorandum is a crucial requirement, failing to submit which in the right format can lead to the company registration being declined. Some essentials that must be stated in the Memorandum are:

‘Limited’ - The Company’s name with ‘limited’ or ‘Ltd’ as the last word. This last word cannot be dispensed with unless specific exemption has been obtained. Such a dispensation can only be obtained on grounds that:

The company is being formed for the objects specified
The liability of the members or shareholders is unlimited

Before registering a company, a name check must be carried out to make sure that the proposed company name is suitable, not offensive and not similar to any existing name.

Location of the company - The memorandum has to state the location of the registered company office (whether it is in England, Wales or Scotland.) The official documents, such as the Companies House communications, notices, summons and writs, arrive in the registered office of the company.

Company objectives - The company objectives must be stated with clarity in the Memorandum. This section comprises:

A main objects clause
A number of clauses governing the company activities

The objects clause should include all the possible activities that a company may engage in to achieve its objectives.

Subscription of initial members – This document must contain a clause dealing with the subscription of the initial company members. This clause must state:

The name of each member
Their addresses
Other details

Private limited company registration requires the presence of two members and a statement of the number of shares of each subscriber. Also, each subscriber has to sign the document under their allocated shares. The signatures of subscribers must be witnessed by a third party.

You can easily fulfill all formalities involved in a limited company registration with the aid of a professional company formation agency. To consult the experts in the industry, visit www.companyformations247.co.uk.

How to Register a Business in UK

2010-01-11T01:23:00.000-08:00

To register a business you need to first decide the location where you want to trade. For instance, if you want to trade in the UK, you must register your company name with the Companies House. This agency is the legal entity in UK that oversees all aspects of company formations. Some documents that you require to register a business in the UK are the certified copies of your business documents and the registration fee.

Steps to Register a Business in the UK
Before you register a business, choose the business structure and organization. You can choose from among public limited companies, private limited companies or private unlimited companies. A private limited company is also of two types: those limited by shares and those limited by guarantee.

The next step is to register the name of your company. For registering your company name, you need to fill up forms that are downloaded from the website of the Companies House. For registering the address of your business, you must fill out Form 691.

The registration form should be mailed to the given address with a fee of £10. If you wish to operate your business in England and Wales, mail to the Registrar at Companies House, Cardiff. If you want to conduct your business in Scotland, mail to the Registrar at Companies House, Edinburgh.

How to Register a Business: Tips on Choosing Company Name
Choosing a company name is one of the first requirements of registering a business. Here are some tips to help you in the company name selection:

The Companies House maintains an index of existent company names. Once you choose a name for your company, check in the index whether the name already exists. If it does, choose another name for your business.
The proposed name must not include certain restricted terms, such as British, government, national, international and institution. Choose a legal name that is easily approved by the Companies House.
The Intellectual Property Office also maintains a Trade Marks Register that contains a list of registered trademarks. Consult this to avoid any conflict with the existing trademarks.

To register a business in the UK, you can seek the specialised services of company formation agents. Company Formations 247 is a well-known agent in the UK who can help you in selecting a suitable name and office address, and register your company quickly and effectively.

A Guide to Start a Limited Liability Partnership in the UK

2010-01-11T01:20:00.000-08:00

The UK business environment offers a variety of company formation options, which include public or private limited companies, companies limited by shares or guarantee, or a Limited Liability Partnership (LLP). It is the flexibility provided by an LLP that makes these the most preferred option for big firms, such as accounting and solicitor firms.

The legal framework of this type of business structure was created by the Limited Liability Partnership Act 2000. The main purpose of designing this business structure was to protect big professional partnerships, such as law and accountancy firms, from negligence actions. Like other business structures, an LLP in the UK is also regulated by the Companies Act 2006.

The only difference is that the structure of management in this case is fixed by the partnership agreement. One of the benefits of such company structure is that loans can be availed at floating rates.

The Companies Act 2006 has been formed after integrating all the preceding laws regulating companies in the UK. For carrying out business in the UK, these laws make for two types of business entities: partnerships and companies.

Main Provisions of the Limited Liability Partnership Act 2000
The main provision of this type of business structure is enshrined in the Limited Liability Partnership Act 2000. The Act allows the partners of the company to have liability up to a certain point. For general trading debts, the Act allows a limited liability. However, the personal liability of the partners in this structure is not limited.

In such business structures in the UK, the conduct of business is done by ‘designated members’ and the ‘members.’ The responsibility of the designated members is similar to that of a director or a secretary in a limited company. The responsibility of providing capital lies with the members. Since the working capital is provided by the members, they also share the profits. In this case, the profit would reflect the partnership rather than the dividends that is paid in case of companies.

One of the requirements of a limited liability partnership is the agreement between the members of the partnership. The process of forming the partnership becomes very easy if you get professional help from specialised agents. One such agent who can help you in getting a basic LLP agreement is the Company Formations 247. The agent can offer you all help, right from providing information to the registration process.

How to Set Up a Business in the UK

2009-12-16T01:31:00.001-08:00

Setting up a business in a new location or a new country are effective ways of ensuring optimum business growth. For instance, you can set up a business in UK by starting a new company, opening a branch of an existing company, or by purchasing a ready made company. In the first two cases, you need to register your company with the registrar of the Companies House. The Companies House is the official agency in the UK that oversees the formalities of new company formations. Ready made companies are existent, already registered companies.

While deciding to set up a business in UK, you might be confused about selecting a company name or understanding the rules of registration. You can get your doubts clarified through the information manual of the Companies House. The manual is available online as well as in paper format. With proper awareness about the company formation rules, you can set up a business in UK quite easily.

Set Up a Business in UK: Tips
When you set up a business in UK, be sure to follow these steps:

First, choose a name for your company. Remember that names with words, such as ‘national’ or ‘country,’ requires special permission from the Secretary of State. Also, names that signify authority or the government, such as ‘federation’ or ‘society,’ must also be avoided.
You must submit the registration form, along with the fee, to the Registrar of the Companies House within a month of setting up your business. When you are opening a branch of your existing company in the UK, you must certify your documents from the country of origin. You also need to submit a copy of the most recent audited accounts.
In case you are setting up a new company in the UK, you must appoint directors and a secretary for your company.
Mail the documents and registration fee to the Registrar of Companies House. If you have any problems in understanding the rules, you can contact the registrar to get them clarified.

Seeking the professional assistance of company registration agents is the best way to set up a business in UK. An agent well-equipped to handle your company incorporation needs, while assisting you in understanding the rules of company set up is Company Formations 24.7. The agent provides you quick company registration services in the UK, and also helps you in finding a suitable company name and office location and the appointment of directors and secretaries.

Tips on How to Register a Company

2009-12-16T01:28:00.000-08:00

The basic step in beginning or enhancing your business is to register a company. To achieve this, you must obtain necessary permission and approval from the concerned authorities of a country. For instance, in the UK, approval from the Companies House, the authorising agency for company registration, is a must to register your company.

For any business to be registered in the UK, it is essential that some kind of business activities take place. However, for getting the proprietary rights of your company, you also need to register a trademark after the company registration.

Register a Company: Things to Know
To register a company for optimal benefits, be aware of the following:

Avoid making common mistakes, such as confusing between various types of companies. For instance, sometimes it might be hard to distinguish between private company limited by guarantees and private company limited by shares. If an error happens, it might cost you heavily.
Choose the name of your company very carefully. The name should be able to reflect the nature of your business and help create a strong brand.
Before registering your company, decide the exact nature of your business. Your tax liability, registration process and regulatory approvals are based on the nature and structure of your business.

Steps to Register a Company
To register a company in the UK, you have to decide an office location. The next step is to nominate a company director and company secretary. Once this is done, you can provide this information to your company formation agent who will take care of the rest. These days, online registration process has simplified the process of company registration.

Keep yourself updated on the latest legislations related to company formation. For instance, some of the provisions of the 2006 Act related to company and business names did not come into force at the time of its initial enforcement. Instead, they came into force on October 01, 2009.

Due to the complex formalities involved in company registration, it is advisable that you seek professional help. These professional agents are well-equipped to ensure that the registration process passes seamlessly. Company Formations 24.7 is an agent offering specialised services in each step of company formation. With its quick and reliable online process, this agent works as a one stop shop for all your company and business registration and incorporation needs. Visit the website today and get unbelievable discounts and offers!

Naming a Business

2009-12-16T01:25:00.000-08:00

While naming a business, you should consider several factors such as the longevity of the business, registration requirements and the global reach. A well-chosen name also ensures the creation of unique brand identity for your company.

Naming a Business for Longevity
It is a good idea to choose a company name that mirrors the current nature of your business. However, rapid advancements in technology make it imperative for business owners to be ready for a change in the nature of their business. So, choose a name with terms like ‘general,’ that widens the company scope to include other domains and fields of expertise.

Naming a Business for Fast Registration
There are designated regulating government agencies in every country that are responsible for registering the names of companies. For instance, to register a company name in the UK, you must follow the criteria laid down by the Companies House and the Intellectual Property Office.

The Companies House: The Companies House prescribes rules for naming a business, which you must adhere to. Do not include words that signify a government agency or institution, in the name of your company. For instance, words such as institution, national, international and government should be avoided. Check the index of registered company names with the Companies House to ensure that the chosen name is not already taken or prohibited from use.
The Intellectual Property Office: This agency maintains a record of all registered trademarks. You can check the register to see if your chosen name conflicts with any existing trademarks. This approach ensures that your proposed company name is not rejected by the Companies House during the later stages of the registration process.

Naming a Business for Global Reach
All entrepreneurs wish to have a global reach for their business at some stage in their business and growth. With that in mind, it is advisable that entrepreneurs choose a name that does not have any derogatory meaning in some other language. Although it seems a difficult task to do, by being aware of this fact, you can avoid problems.

You can save yourself from a lot of name search related problems if you take help from one of the company formation agents. Company Formations 24.7 is a well known agent who has made a mark in the industry by providing assistance to many entrepreneurs in establishing successful businesses in the UK.

Company Start up in the UK: An Easy Guide

2009-11-10T01:06:00.000-08:00

A company start up in the UK is a good proposition if you wish to branch out offshore. The sound legal framework in the UK provides a favourable and flourishing environment for doing business. All companies in the UK are regulated by the Companies Act 2006, as of October 01, 2009. Further, the Companies House is the official UK agency that looks after all aspects of company formation. This agency stipulates many rules and regulations, which can be accessed both online and offline. So, if you are an entrepreneur looking to set up a company in the UK, it will help to know the rules and regulations.

Steps for Company Start Up in the UK
It is said that idea generates money and not the other way around. So the prime mover of any good business initiative should be the idea behind it. You should plan your business strategy very carefully before venturing into any business. Once you have planned your business, follow these steps for a company start up in the UK:

Define the business objective and the nature of your business. The structure of the company would be dependent on your business objective.
You can choose among the four types of companies in the UK. These are private company limited by shares, private company limited by guarantee, private limited company and private unlimited company. All these types have different tax liability. The private limited companies are the most preferred, due to their tax benefits.
Choose an appropriate name for your company to be registered with the Companies House. You can choose only those names which do not sound like the ones already registered with the regulating agency.
Register a company office in the region where you wish to do business. Depending on where you intend to do business, you can either register an office in England, Wales or Scotland.
Fill out Forms 10 and 12 of the Companies House and the agreement documents. You can do it either manually or electronically. Due to their convenience and expediency, electronic filing is in vogue these days.

To enable a smooth registration process for your company start up in the UK, it is advisable that you take up professional help. Professional agents like Company Formations 247 provide you all necessary help required in company formation, which include filling up forms and filing with the Companies House. The agent also offers you services, such as registering an office or appointing directors and secretaries at attractive prices.

Business Formation Agents

2009-11-10T01:02:00.000-08:00

With the expert help of business formation agents, you can set up a new company in the UK without any difficulty. The Companies House in the UK has authorised several such agents, who facilitate the company registration process. With their help, the need to hire a lawyer for completing the complex formalities involved in setting up a new business is totally eliminated.

Role of Business Formation Agents
Business formation agents work as important links between the Companies House and the applicants. They also advice entrepreneurs and company owners on several company formation matters.

Their role as a link: These agents work as a crucial link between the entrepreneur and the Companies House. Since the Companies House receives thousands of applications each month, it is realistically not possible for the agency to guide each and every applicant individually. Hence, the team of company formation professionals, with their expertise in all aspects of company formation formalities, works for these entrepreneurs and simplifies the process for them.
Advisory role: They provide valuable advice on matters of setting up a new company. This includes finding a suitable name for the company, the fees required, procuring application forms and other related matters. Since these agents are deep in the trade and advise several clients every day, they are updated on the latest intricacies of starting and registering a new business.

Benefits of Business Formation Agents
Most business formation agents have developed their own electronic interface, which works in sync with the back office of the Companies House. This enables electronic filing for entrepreneurs, and speeds up the registration process. Company formation agents provide the following services for the smooth incorporation of your company:

Assistance during company name search, so that your chosen name gets registered easily.
They help you in registering your office, and appointing the directors and secretary for your company.
Help you in filling up the application form and preparing other necessary documents, such as the Memorandum of Association and Articles of Association.
They also provide post incorporation assistance.

It is not wise to unnecessarily waste your time on completing these complex formalities on your own. The best way to start a company is to utilize the services of the agents like Company Formations 247. The company formation agent provides all kinds of company formation assistance at the most competitive prices in the industry.

Company House Registration: An Easy Guide

2009-11-10T00:58:00.000-08:00

The first step to setting up a new business in the UK is completing the Company House Registration process. The Company House is the official agency of the UK that regulates all aspects of company formation.

Documents for Company House Registration
Here are the three documents you must fill up and submit for Company House Registration in the UK:

Registration Application Form: This form asks for information related to the location of the registered office of your company. Based on the region where you wish to trade, your office could be located in England, Wales, Scotland or Northern Ireland. It also provides information related to the consenting Secretary and Directors of the company. In case you have applied for a company limited by shares, you also have to mention the details of the share capital.
Memorandum of Association: This form must include the names and signatures of the subscribers wishing to form the company. For a company limited by shares, you will have to provide a commitment of subscribers taking at least one share each.
Articles of Association: It deals with the internal management of the proposed company and its liability.

The registration application form can be downloaded from the website of the agency. However, you will have to purchase the Memorandum and Articles of Association from a Legal Stationer, which can be found on the Yellow Pages.

After filling up these documents you can send them to the agency along with the filing fee applicable in your case.

Tips on Company House Registration
These company house registration tips may help you in your company registration:

The average time of incorporation of a company is eight to ten working days after receiving the form and relevant documents. The agency also provides the facility of Same Day Incorporation, which can be availed at a higher cost.
Check for the availability of the company name before sending the documents to the agency for registration. You can do this by calling the agency on phone or online.

For an error-free filing, you can use the electronic filing system. If you have any problem related to the registration process, you can depend on a reputed company formation agent. Agents like Company Formations 247 are able to provide professional guidance in all aspects of company registration, right from providing information to mailing the final certificate of incorporation of the new company.

How to Start a Business in the UK

2009-10-14T14:00:00.000-07:00

If you have a sound business plan and wish to follow your own path of success, the best way for you is to start a business. Countries like the UK serve as great business locations, where it is easy and convenient to start a new business.

Tips on How to Start a Business in the UK
Here are some tips to help you start a business in the UK:

First decide what kind of business you want to start. If the idea of moving around does not suit you, home business would be the most suitable for you. It also has a lesser cost of establishment. Online business is also a good low-cost business.
If you want to start a business that requires high capital, you may approach a bank or a financial institution for loans. For getting loans easily, you should draw up a sound business plan. This would help you in securing loans easily, and you can also bargain for repayment conditions in your own favour.
There are a number of online and other magazines on entrepreneurship. Read them to get an inkling of the best and the latest business ideas. Also get yourself acquainted with the legal framework in the UK and other business-related acts, such as the Companies Act 2006.

How to Start a Business: Setting up a New Company
To start a business or a new company, follow these company registration steps:

Choose an appropriate name for your company. Ensure that the company name reflects the nature of your business.
Based on your business plan, choose an appropriate business structure. You can choose from private limited company, public limited company or private unlimited company.
Appoint a secretary and directors for your company.
Fill in the registration form provided by the Companies House.
Mail the forms and relevant documents, with the registration fee to the Companies House.

Since the Companies House receives thousands of applications each month, you should be extremely careful about avoiding errors and mistakes. The most convenient way is to take the specialised help of company formation agents. A well-known agent in the UK who can make your task simpler is Company Formations 247. The agent will assist you in all aspects of starting a new business in the UK, which includes drafting your business plan, finding office space, and other official services and the entire registration process.

Naming a Company in the UK

2009-10-14T13:58:00.000-07:00

While naming a company, you should consider factors, such as ease-of-registration and creation of a strong brand for the business. In the UK, you must take special care to choose a name that is easily passed for registration by the Companies House.

Naming a Company: Ease-of-Registration
The rules prescribed by the official agency, the Companies House, must be followed while naming a company. Words used for government institutions and agencies should not appear in your company name. Some examples include government, national, international and institution.

Refer to the Companies House to check whether a company name same as yours is already registered with the agency. Check the index of registered companies maintained by the Companies House. You are also not allowed to use a name that sounds similar to an existing company. Also check for conflict in name with the Intellectual Property Office.

Naming a Company: Create Brand Identity
A powerful and relevant company name is highly influential in creating a unique brand identity. Here are some useful tips for naming a company:

Easy to Pronounce: An effective method of choosing a company name is to think in terms of marketing and advertising scenario. Choose a name that is easy to spell, pronounce and understand. While considering the advertising scenario, think about the print and electronic media, including radio. If your company name can be easily read from newspapers, easily spoken on the radio and television and easily understood by the masses, it indicates the potential to create a strong brand.
Type of Words: You can either choose words that describe your business, or use abstract words for depicting an idea. However, be careful about using words that are comprehensible enough, and which can clearly convey the nature and purpose of your business to the target audience.
Use of Dictionary or Thesaurus: If you have some vague idea of how your company name must be, you can take help from a dictionary or thesaurus to give it a distinct shape. An effective naming technique is to combine the first letters of the words that describe your business in an elaborate way, and use this contracted word as your company name.

Since you can’t afford to lose time during the registration process, due to some flaw in the chosen name, the best way is to take help from a company formation agent. Company Formations 247 is a UK-based agent well-equipped to provide several company formation services, including naming a company and the actual registration process. The agent can also offer you a ready made company if you are eager to start your own business immediately.

Business Name Search

2009-10-14T13:50:00.000-07:00

The process of business name search could be annoying if you don’t know the correct technique of doing it. Since choosing the name of your business is the first prerequisite of starting your own company, this needs to be done with extra care.

In every country, there are government authorised agencies that help entrepreneurs registering their new companies. For instance, in the UK, the Companies House is responsible for registering the name of any company.

The Right Technique of Business Name Search
Here are a few steps to follow while searching the right name for your business:

Vision: While doing business name search, you should not be myopic. That is, an entrepreneur must be hopeful of having a great future for his business. This prevents you from choosing a localised business name, which might prove disadvantageous at a stage when you need to sell the franchise.
Marketing elements: A name has a great role in the marketing of a product or services. Hence, search for a name that mirrors the nature of your business.
Spelling: Search for a name that is easy to spell. If the chosen name describes your business correctly, but has a complex spelling then the name would not be popular among the masses.
Internet factor: Since the Internet is a very strong medium that enables all kinds of businesses, it is important to check the availability of domain name. There are many free domain name checkers available online, where you can check the availability.

Business Name Search: Points to Consider Before Finalising One
Your business name search must also involve ensuring that your company name adheres to the legal requirements that facilitate easy registration. Here are a few points to consider before finalising the right name of your company:

Certain words, such as national, international and institution, used for government institutions or organizations, are restricted from use in company names. Hence, avoid these words in your chosen company name.

The Companies House maintains an index of all companies registered in the UK. Check this index before finalising the name of your company. You can do this by either calling the agency over phone or on the website of the company.

Hiring the services of specialised company formation agents can hasten the process of finding a suitable name for your company. Reputed agents such as Company Formations 247 are well-equipped to provide you all types of services related to company registration and incorporation.

What is a Limited Liability Partnership?

2009-01-07T01:11:00.000-08:00

A Limited Liability Partnership (LLP), simply defined, is a separate legal entity with an identity distinct from that of its individual members. A limited liability partnership has all the powers of a limited company. But, most partnership laws do not apply to a Limited Liability Partnership, though the structure and the arrangements between partners may be somewhat similar.

LLPs have existed only for a couple of years, since April 2001, to be exact. In the beginning, LLPs were created for professional bodies of solicitors, lawyers and accountants who were not allowed to incorporate as limited companies in the past.

There are many benefits to having a Limited Liability Partnership. These are:

LLP’s allow partners (also known as members) to limit their personal liability. This is its main benefit. Individual partners are not collectively liable for the company’s debts. Unlike in a general partnership where every partner is personally liable for outstanding debts, in a limited liability partnership, members are liable only to the extent of their investment. Hence the name of the structure.
They allow more flexibility in voting and rights to assets once the partnership ends. This is useful especially when a partner/s is retiring.
LLPs attract tax reductions by a large margin.

To form an LLP, a partnership must be able to file the appropriate forms with the Companies House, just like a limited company. Fulfillment of this requirement will allow the Registrar of Companies to issue a Certificate of Incorporation.

Just like any business, Companies House has the right to check the applicant’s name before it is incorporated to make sure that it has no duplicates. To avoid this situation, check the listing for names so that you will not have to experience a delay in your registration.

Once you have registered, it is highly recommended that you and your partners form an agreement where the duties, rights and responsibilities of each partner is laid out in detail and where you have written a clear account of how the business will be run. This is called a partnership deed. It is created to ensure that from that day forward, your business will run smoothly and all the responsibilities are well delegated to each partner.

Aside from the partner’s rights, responsibilities and duties, it will also include the conditions when the partnership is dissolved, details on the profit share (most LLP’s have an equal profit share), the decision making process the LLP should follow and any other detail that the partners agree upon.

The most important part of the partnership deed is the agreement on how the LLP is going to be managed and the delegation of duties and responsibilities of each of the members.

The partnership deed allows the partners to decide on the nature of their internal relationships, in the same way as conventional partnerships do. Because the Limited Liability Partnership is a separate legal entity it can hold property and enter into contracts. Like a company, an LLP continues as before even when its members change.

LLP formation – what you need to know

2008-11-20T03:31:00.000-08:00

A Limited Partnership (LP) is a form of General Partnership, where the partners have the flexibility of organizing the company’s internal structure, but still avail of the benefits of limited liability. In this business structure, one dominant partner runs the business and the multiple ‘limited partners’ make contributions to the partnership in the form of products, services or cash. If an LLP runs into financial bad weather, the general partner has no protection. However, each of the ‘limited’ partners is independent of the liability caused by the actions of other partners. Thus, the LLP structure limits the personal liability of each of the partners for any errors caused by omissions, negligence or incompetence of the employees or other agents involved in the business. For tax purposes, the government recognizes the LLP as an association of co-owners. Each partner or co-owner is taxed to the extent proportional to their share of profits. This is in contrast to the structure of a partnership, where all the partners are liable for any debt incurred by the company. It is to avoid this element of high risk that many people turn to LLP formation.

An LLP must have at least two members, and the rights and duties of all these members are given in the “Deed of Partnership”. Before LLP formation, the company would have to select a “Designated Member” who is responsible for all correspondence with Companies House. This member would also be responsible for supervising and preparing accounts and acting on behalf of the LLP, if it were dissolved in the future.

LLP formation is somewhat similar to other forms of business incorporation. There are two ways in which you can go about the formation of your LLP. You may enlist the services of one of many business start-up agencies who have qualified formation agents. They will guide you through the process of LLP formation, collect all required documentation and advise you regarding tax planning of the company. Currently, Companies House charges £20 for LLP formation. However, if you opt to go for the services of formation agents, they will naturally charge you extra.

It is easier to make use of the services of a formation agent because, LLP formation has a number of rules pertaining to choice of names, the use of sensitive words and expressions, the need for different approvals from recognized authorities and the disclosure of information. At the time of LLP formation, the members of the company should draw up a Deed of Partnership, which is a legally binding agreement that lais out in black-and-white all the responsibilities of each of the partners. This deed would also contain valuable information like the address of the members, their names, amount of capital invested by each of the members and their roles in the company.

One of the constraints of LLP formation is that it is not possible for interested parties to buy an off-the-shelf limited liability partnership, as you can with a limited company. This is because the old the set of documents that need to be submitted to the Companies House has to contain the names of the partners who are present at the time of incorporation. The registration form must contain the following details:

the name of the LLP
the location and address of the registered office
the name and address of individual members of the company at the time of incorporation
the name of designated members

Limited Liability Partnership Registration

2008-11-20T03:30:00.000-08:00

When starting a business you might want to consider a Limited Liability Partnership (LLP) structure for your proposed business. An LLP is one of the newest and most attractive forms of business entities available to entrepreneurs today.

As the name suggests, a Limited Liability Partnership protects the business partners from personal liability for outstanding obligations in business. This is where an LLP is different from general partnerships. In a general partnership, each partner is held personally liable for the company’s debts. So, if the business is sued, each of its partners are equally liable for the debt; which means that even if you invested only 10% in the business, your liability is 100%. That is the reason why many businesses avoid general partnerships, if they can help it.

In a Limited Liability partnership, each partner is limited only to the extent of their investment in the partnership. Thus, their personal assets are far more secure in this kind of a partnership. Since each country has a slightly different law governing LLP’s, the liability of the partners involved changes from place to place. In general, a partner of an LLP is not responsible for any debts, financial obligations, or liabilities another partner may have incurred due to their negligence, misconduct pr wrongful acts.

Many countries extend the liability protection only against negligence claims. What this means is that a partner can be personally liable for other claims, such as contract claims. Another topic discussed by the law is the profits. The profits earned by the limited liability partnership are distributed evenly among the partners. This distribution is for tax purposes as the partnership is not taxed separately. When the partnership is taxed as a whole and not separately, it avoids double taxation which often happens to large corporations.

Registering a limited liability partnership costs less because you do not need a lawyer to register any business as an LLP. This is very useful for small businesses that are short on cash and time. Thus, tax advantage, cost reduction and limited liability are the defining characteristics of an LLP. Additionally, a Limited Liability Partnership has more flexibility when it comes to developing ownership structure. This is because unlike the general partnership where every partner has equal rights, in an LLP, there is one designated member. The other partners are not actively involved in the running of the business. Reporting requirements are also comparatively less when it comes to LLPs.

If you are in a partnership, you can opt to change it to a limited liability partnership by registering with government authorities and fulfilling certain requirements. You will be required to provide proof that the partnership has enough assets to cover any claims and that it has obtained adequate liability insurance. Aside from the proof of assets, businesses must also pay a registration fee in order to become a Registered Limited Liability Partnership or LLP. Professional partnerships like lawyers, dentists, engineers, accountants and the like must register as Professional Limited Liability Partnerships. In any case, these professionals prefer limited liability partnerships because they limit the liabilities of partners who are innocent of negligence and any other form of malpractice.

Private Limited Company Formation

2008-10-24T06:55:00.000-07:00

Before you decide to make your company a private limited company, it is important to understand what a private limited company is and what its advantages are.

A private limited company is a registered company having 2 - 50 members. This structure ensures that have limited liability, corresponding only to the extent of their investment in the company. Therefore, members will not be held personally liable for the total loss incurred by the company. However, a private limited company cannot invite common people to subscribe to the shares and debentures of the company.

Thus, a private limited company has a distinct legal existence. It is easy to form and organize. This is because there are certain exemptions at the time of private limited company formation. For example:

A private limited company is not required to file a prospectus with ROC.
A private limited company does not need to obtain the Certificate of Commencement, which is generally required when a business starts.
A private limited company does not have to hold a statutory general meeting.
A private limited company is not required to file statutory reports.

Furthermore, the company has a long span of existence because according to the law, the company will continue to exist even if all its members no longer existed. Does the three most important benefit of a private limited company are less stringent legal restrictions, continued long-term existence and limited liability to its members.

Before actually getting into the process of private company limited formation, the entrepreneur needs to select a suitable name for the company. However, in the UK, the government does not allow to businesses to have the same or similar names. Therefore, it is necessary to check out the availability of the chosen name. It is also important to comply with rules pertaining to the use of sensitive words and expression while choosing a name. Some of the words that are considered to be sensitive include “bank”, "fund management", "insurance", "investment funds", "loans" and "reinsurance”. These are only some of the terms that are considered to be sensitive. Restricted names require approval from a government authority or a license before the name can be implemented.

This is followed by the submission of the Memorandum and Articles of Association. The company is also required to submit a Declaration of Compliance and a statement comprising of the name and address of the first company secretary and directors. These forms contain important information regarding the physical location and address of the company in the UK.

Since in the process of public limited company formation is an intricate one, many entrepreneurs prefer to hand over this process to a business start-ups service or formation agent. These agents have ample experience in the processes involved in business incorporation. Ample experience ensures speedy, error-free approval. Many of these services also provide sound advice regarding the benefits of certain company structures and how the structure of your company can be utilized to attract maximum tax benefits in the UK.

Offshore Company Registration

2008-10-24T06:53:00.000-07:00

Times are hard. It is a known fact that many companies are having a tough time staying afloat. With the economy going downhill, more and more companies are looking for ways to find low cost yet efficient options to expand their business. This is why more and more companies are considering the option of forming an offshore company through Offshore Company Registration services.

Over the past few years, globalization and information technology has hugely modified the way we do business. Communication also has greatly improved. All this has truly led to the formation of what we call a global village. That is the most important contributory factor in the sudden surge some countries are experiencing in the demand for forming companies in their jurisdiction. In short, over the past years, it has become a lot easier for businesses to start a company in an area that is geographically removed from their home country. Another factor that makes the formation of offshore companies even more appealing is the growing number of start-up services and agencies that offer to incorporate offshore companies for a small fee. These agencies take care of all the paperwork and the hassle associated with offshore company registration, so that businesses almost get their offshore companies ready on a platter.

There are many reasons why businesses choose to incorporate an offshore company instead of a local one. Offshore companies are less costly, they earn more profit, and they are easier to operate. As opposed to onshore companies, offshore companies are required to satisfy less stringent rules and procedures. Some businesses also go in for offshore company formation because their business interests require them to enter into cross border business transactions. But these are comparatively rare.

The most compelling reason for businesses and companies to opt for offshore company registration is the accompanying tax reduction or tax negation. It is a widely known fact that any businessman who obtains an offshore company registration or anyone who opens a bank account in a foreign country gets tax reduction benefits. Many countries are creating laws to attract valuable foreign investors to improve their employment rate and financial strength. Setting up an offshore company in one of the tax havens like British Virgin Islands or The Seychelles means you can enjoy tax exemption. For many companies, this adds up to huge amounts. This, along with the simplicity of Offshore Company Registration, has made it easier and more profitable for people to open businesses overseas.

Another reason why people opt for offshore company registration is the simple reporting system. The reporting requirements of an offshore company are less stringent compared to an onshore company. When you incorporate a company offshore, you not only ensure higher asset protection, you also make sure that your identity is protected. Personal privacy protection is an important reason behind offshore company formation. In an offshore company, the personal information of directors or shareholders can be kept discrete if the company so desires.

All in all, offshore company registration has become a widely accepted practice in the industry.

Benefits of an off the shelf company

2008-09-26T04:57:00.000-07:00

In the not so distant past, anyone who wanted to form their own company (or incorporate a company) had to wait for a long time before they could get their company incorporated. This is because creating companies take a lot planning, strategizing and time. However, not all of us have the luxury of time. Most businesses cannot afford to wait for several months or a year before they can form a company. For pressing financial reasons, entrepreneurs often find themselves needing a company as soon as possible. This need and urgency, coupled with an easy online system of registration has created a whole new option for entrepreneurs called off the shelf companies. The creation of off the shelf companies has made a huge difference in the way people form companies. This facility makes it easy and quick for anyone who wishes to own a company in a hurry.

An off-the-shelf company, very loosely defined, is a legally formed but incomplete company. This means that the company has fulfilled all its legal requirements to become registered except for the appointment of its directors. Off-the-shelf companies are available for sale and bring the purchaser the convenience of transforming the company with ease and at a very low cost.

Many company formation agents ‘pre-create’ companies and keep it with them for the use of businesses that need a company urgently or inexpensively. This made it possible for people to acquire a company as and when needed.

Buying an off the shelf company is very easy. First the off the shelf company provider must transfer all of the shares of the company to the buyer. Second they must allow the current directors of the company (if any) to resign in order for the new directors (usually the buyer and/or its appointed directors) to take control of the off the shelf company. After this, the newly appointed directors have all the power to direct the company, manage its assets and take control of its funds. During this time, the buyers may wish to keep the company name under which it has been originally registered or change the name to a new one, which is more in keeping with the nature of their business.

However, with the arrival of online company registration services, it is no longer necessary for businesses to wait to create a new company. So, there is less demand for these off the shelf companies. One of its major drawbacks is that these shelf companies provide much less flexibility to owners than companies that have been custom built around their needs. Even so, one cannot discount the benefits of this option. Off the shelf companies make it very convenient for businesses to become incorporated. There is fewer administrative hassles and expenditure in the creation of the new company when compared to purchasing a ready-made company if you find a shelf company where you do not need to change anything much. In that case, all you may require is possibly change the name of the company, transfer shares and pay stamp duty on the shares transfer.

How to Register Your Company in the UK

2008-09-11T08:37:00.000-07:00

Forming your own company could be a dream come true for many people. However, jumping into the process without proper understanding can lead you to waste time and money through unnecessary delays and returned paperwork. So, if you have decided, after some amount of evaluation, that incorporating your business benefits your business, then it is time to learn a little more about how to register your business in the UK. Whether you intend to carry out the registration yourself, or outsource the work to an online business start-up agency, knowing the steps involved will keep you one step ahead in the game.

First of all, you will need to decide on a name for your company. You need to choose a name that is available, as no two businesses are allowed to have similar name in the UK. You can check out the availability of names from the list of names that can be found at the website of Companies House. Then, you also need to decide on the structure of your company. For this, you may enlist the services of an accountant or an attorney, who can guide you on what business structure is most suitable for your business and can bring you the most profits. After that, it is time to get your hands dirty!

From the Companies House website, you will need to download Form 10 and Form 12. You will also need to purchase The Memorandum of Association and The Articles of Association from a Legal stationer. Now you have everything to get you started.

The first form (Form 10) basically collects information regarding the location of the Registered Office and details regarding the Company Secretary and Directors (if any). In this context, it is important to remember that your company would require a physical address in the UK, before it can be incorporated. This is the address to which all important papers relating to your business will be sent. If you do not have an address in England, Wales or Scotland, you may ‘rent’ an address from an agency or a solicitor, who will allow you to use their address for all communication, on the payment of a small fee. However, keep in mind that you will be responsible for your documents that reach this address.

In Form 12, you will find the Declaration of Compliance and the Companies Act 1985, both of which are important in respect of registering your company in the UK. You can keep this form aside at first and move on to the Memorandum and Association of articles.

The Memorandum of Association states the company’s name, physical address, the objectives of the company and its liability. The Articles of Association, which collects details regarding the internal management affairs and running of the company. These are important documents, and you must fill them in precisely so as to avoid errors. Once you fill these up, you must take these forms to a Solicitor, and sign Form 12 in their presence.

Once you have completed these four documents correctly, you may submit the finished documents to Companies House and pay the relevant filing fee. Before you submit your papers, check all the documents once more. If you want the registration to take place in a day, mark the envelope addressed to the ‘New Companies Section’ with “SAME DAY INCORPORATION” typed on it in bold print.

Company formation in UK – What you need to know

2008-08-26T04:59:00.000-07:00

Forming your own company is a milestone in life. It is a measure of your achievements thus far. Forming a company changes the way you operate, and it alters your thinking. It puts you in the league of potential bigwigs, and forms the basis of future achievements. Thus, it will change the way you spend money, the way you make decisions and the way you socialize. Undoubtedly, forming your on company will be one of the most demanding challenges you are like to take on.

So, if you are on the verge of becoming your own boss with the freedom to work when and where you want, then you must also have put in a lot of thought into the actual process of company formation. The procedures involved in the formation of a company vary according to the country you want to set up shop in. In this article, let us talk about company formation in the UK.

Company formation in the UK is also known as company registration. The procedure is quite easy, particularly if you take the services of one of several business start-up services. In fact, it may surprise you to know that a large percentage of companies formed in the UK these days are put up electronically!

But before you can start, you have to first decide whether you need to form a limited company, a partnership, an off-the-shelf company or something else. Your business start-up service will guide you regarding the pros and cons of each of these, in case you are not sure about what type of business you should opt for. Every business has certain advantages and disadvantages. For instance, while sole proprietorship is the simplest way to set up your own company, you should keep in mind that the proprietor is personally held liable for any debts and obligations your business incurs. On the other hand, forming a partnership may be cumbersome since partnership agreements have to be drawn up but they may suit your tax needs in the long run. So, decisions such as these have to be taken after serious thought.

After you have decided on the type of company you want to own, company formation in UK is relatively fast. Simply choose a name and you are ready to go. If you are incorporating your company online through online business start-up services, you can check the availability of your chosen company name instantly. These services will also educate you on restrictions on name, if any.

One of the greatest advantages of going to the experts when you are ready to form your company is the ease with which the process proceeds. Online companies that help you form your company will guide you regarding the documents you need to submit, the licenses you may require, whether you need to acquire consent from the authorities etc.

Due to the sheer volume of expertise that servicing companies possess, if you form your company online, you could own your company and get it ready for business in a matter of hours (minimum) to 4-5 days (maximum), depending on the approval from Companies House. So, you can leave the hassle of company formation to the experts while you focus on what you do best – your business!