CORPORATE LAW

Corporate Law



Corporate Law

1- Persons carrying on business either as a sole trader or in a partnership are, in most cases, personally responsible for meeting the debts and liabilities of the business out of their own personal assets (to the point of bankruptcy). AUK business is, although, a distinct lawful individual from its owners/managers and, in the case of the most widespread form of selling business, the liability of its constituents is limited to the allowance of cash which they have paid up or acquiesced to pay up in esteem of their shares in the company. This Memorandum does not deal with affairs solely relating to enterprise conveyed on as sole dealer or through a partnership (although diverse matters set out in Part B may be applicable to such businesses), but focuses on the bearing on of enterprise through a UK enterprise or as a branch agency or location of enterprise of an overseas company. For farther information on LLPs, see the firm's distinct briefing note deserving "Limited Liability Partnerships".

2-Establishing a Separate UK Company Types of company There are various forms of UK company: a private company limited by shares; a public company limited by shares; a private company limited by guarantee; and an unlimited company. The following commentary agreements with businesses restricted by shares, which are almost habitually the corporate vehicles utilised in bearing on any enterprise activity. Private versus Public Status Company legislation generally relates to both private and public companies alike. There are, although, a number of dissimilarities, the most important of which are summarised in Part C - most overseas enterprises choose a personal business, at smallest initially, as this is the smallest regulated vehicle and is thus easier and lower to run. The Registration Process A central registry (known as Companies House and headed by the Registrar of Companies) exists to deal with both the initial registration and ongoing monitoring of companies to ensure their compliance with law. UK businesses will be incorporated either in England and Wales (registered and supervised by Companies dwelling in Wales) or in Scotland (registered and monitored by Companies House in Scotland). However, broadly the identical business legislation concerns to each. Registration of a private limited company is straightforward and, upon submission of the relevant documentation (including particulars of members and directors and of the proposed constitution) and application fee Companies House will issue a certificate of registration within around seven working days. It is possible to incorporate a company within 24 hours, although at greater expense, smce Companies House charges a one-off expedition fee. Alternatively, it is likely to come by a "shelf company", which is currently set up but has not yet traded. Stevens & Bolton LLP incorporates and retains shelf businesses for use by clients. For farther information delight mention to the communicate minutia at the end of this memorandum. Company and Business Names Before any documentation is prepared or submitted to Companies House, it is important to establish that the proposed company name is ...