The decisions begin before the problem
PBUILD YOUR BUSINESS ON STRONGER FOUNDATIONS
Every commercial decision can create legal rights, responsibilities and risks. The opening copy names familiar moments: launching, hiring, contracting, selling online, collecting data and managing disputes.
WHAT YOU NEED TO KNOW
Businesses are the backbone of our capitalist society and the means by which the UK creates the economic wealth to remain (for now) the sixth-largest economy in the world. They dominate our way of life. They feed us, clothe us, build our homes, transport us, entertain us, inform us, medicate us and employ us.
What is a Company
A company is often what we think of when we imagine a business. A company in the UK is formed by registering certain documents with a public official, the Registrar of Companies, in accordance with the requirements of the Companies Act 2006. A number of different types of company may be formed such as, unilimited company, limited company and other type such as community interest company, charitable incorporated organisations, UK societies, Limited liability partnership.Â
Limited Company
A limited company is one in which the liability of its members is limited under the Companies Act 2006. Let us compare two clothing businesses which manufacture flared jeans. The first, JM Jeans (JMJ), is run as a partnership and the second, JM Limited, as a limited company. Both businesses stop trading because not enough people want to buy flared jeans. Both businesses owe their suppliers a significant amount of money. The owners of JMJ, as partners in a partnership, face unlimited liability for these debts. If selling the assets used by JMJ does not pay off all the debts then the partners must use their personal assets, for example their savings, or even sell their possessions, to settle the outstanding amounts owed.
The owners of JM Limited, as members of a limited company, have only limited liability. This will be set out in the company’s constitution (ie its rules of operation). The amount the members have to pay will be limited to the amount they have agreed to pay for their shares in the company and no more than this. So, if the assets of JM Limited are sold off and do not raise sufficient money to settle the company’s debts then the members will not have to pay any more than they agreed to in buying shares, ie ownership of the company.
Unlimited Company
An unlimited company is a company which does not have any limit on the liability of its members. The members of a company are its owners. If the owners wish to run their business through an unlimited company, then they will be required to use not only the company’s assets but also, if necessary, their own personal assets to pay off the company’s debts.
Community interest company
The community interest company (CIC) is a form of limited liability company (either limited by shares or by guarantee, either private or public) intended for businesses that wish to use their profits and assets for the public good and not for private profit.
Limited Liability Partnership
A limited liability partnership (LLP) is basically a hybrid between a partnership and a limited company. It has a separate legal personality distinct from its owners, like a company, and it offers its owners the protection from liability of a limited company. However, the LLP is run with the informality and flexibility afforded by a partnership, and the partners are taxed as if the business were a partnership rather than a company.
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QUESTIONS PEOPLE ASK
- What type of business is best?
- Can the entrepreneur set up this type of business?
- How much tax will the entrepreneur pay?
- What is the entrepreneur’s attitude to risk?
- What formalities are required?
WHAT WE DO
SETTING UP A BUSINESS
Practical and legal considerations involved in setting up a business including the choice of business medium.
TAXATION
To introduce visitors to some tax issues when setting up and running a business.
COMMERCIAL TRANSACTION
Dealing with some of the legal issues that arise in relation to commercial transactions which govern everyday business activity.
INTERNATIONAL CONTRACT
Introduce and explain some of the main issues of international commercial contract performance and highlight the main differences between civil and common law legal systems.
PARTNERSHIPS
To enhance your understanding of the basic rules of partnership and to improve appreciation of how partnerships are created and why.
SHARE CAPITAL
To help visitors understand the procedure to increase the authorised share capital of a company and to issue shares.
KNOWLEDGE HUB
Lease Assignment
Gain comprehensive property and conveyancing information, stay informed about the latest developments, and benefit from expert insights, local trends, and practical advice tailored to homeowners, investors, and renters.
Constructive Knowledge
To prove liability for negligence you need to establish knowledge. For example, if you believe that your employer is responsible for your injury you would have to show that they were aware of the threat and did not take any reasonable steps to avoid it.
Business
In the UK, business law ensures that companies operate within a structured and lawful environment, promoting fair trade and protecting stakeholders’ rights. Whether you’re starting a new venture, expanding operations, or managing legal risks, business law is an essential pillar of success.
Immigration
We understand that immigration can be overwhelming and costly, especially for international entrepreneurs, students, and asylum seekers. Our mission is to make immigration processes seamless, affordable, and successful.
Disclaimer
This website is intended to provide an introduction to UK business and commercial law. I hope that it will be of use to visitors who wish to update their knowledge.