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The British Entrepreneurial Boom

27 February 2014

A survey by the Office for National Statistics has revealed that self-employment is on the rise in Britain. It is obvious that the recent economic downturn is to blame. Many employers were forced to make redundancies as they found their companies in financial trouble while the economy was going through a tough time.

Now, many people are resorting to creating their own employment, as this remarkable run of job losses left a large proportion of the British population lacking confidence in the employment system.  In fact, the number of people earning a living for themselves is at a record-breaking 4.3 million individuals as of 2013. The number of self-employed people has been gradually increasing since the start of the recession between 2008 and 2009.

This period saw a 15% increase in people creating their own jobs, and it is an astonishing discovery that around 60% of these changes took place after 2011. Other statistics have revealed that not all these people in self-employment had actually lost their jobs. Actually, self-employment contributed towards 40% of the loss of employee jobs, meaning many people had the option to stay in employment, but opted to be their own boss instead.

Such news is very positive for the economy, as many of these individuals will create jobs for other people, which will help drastically reduce unemployment and give the country’s GDP a boost. The Office for National Statistics also underlined that 395,000 more people are in employment compared to last year’s figures; a clear indication that an economic recovery is in full swing. Britain is more entrepreneurial than ever, and reports say this trend only seems to be getting stronger. It is obvious that many of these people will need help with company formation, as the process can be daunting at times.

At eformations, we offer professional assistance with such services, and help with related issues like company restoration and company name checks as well. We have a team of professionally trained employees who are highly skilled and experienced in the company formation field. We will be able to give you many options using services that are of benefit to your organisation. If you need more information regarding our top quality services, please do not hesitate to contact us on 02082325479.

Company Formation Set to Rise Due to new London Initiative

Last year was a very positive one in terms of business start ups in the UK according to business analyst Duport. This month’s Business Confidence reports have shown how many widespread areas of the UK are experiencing rises in company registration, and also decreases in company dissolution. Areas as widespread as Cumbria, West Midlands and Berkshire have reported healthy expansion and diversification of local businesses; which points to greater confidence in the economy.

Continued Rise in Regional Start-Ups

Duport produce yearly and quarterly roundups of business reports for all main towns and cities in England. The positive growth and company formation statistics spread across various regions of the country: 2197 companies were formed in Cumbria in 2013, which is an 11.7% increase upon 2012. In the West Midlands figures for business formation in Coventry broke records, as 3197 new companies formed in 2013, and business is booming in Berkshire; with significant increases in the number of registered businesses reported in Reading, Newbury and Maidenhead.

Start-Up Numbers to Rise in London

A new initiative, which is backed by Boris Johnson, to convert London’s disused garages into office space for new businesses will start later this year. The mayor of London has put £9 million aside to convert the disused garages into working spaces that will be more accessible to small enterprises, largely due to much lower leasing prices. Boroughs and Housing associations will be given the opportunity to bid for portions of money to regenerate the disused buildings.

According to GLA conservatives, there are 3275 unused garages in London, particularly in the areas of Bexley and Bromley, which could be put to good use. Johnson has said “‘London is littered with empty garages that with a little bit of love and investment could provide the perfect working space for small businesses”. The scheme would be beneficial for both housing associations and entrepreneurs, as the associations would quickly make their money back, due to small investment costs, and business owners can finally realise their dreams because affordable offices would become available.

With the economy strengthening and confidence in business pushing up profits, things are really looking up for business owners and budding entrepreneurs. With new initiatives such as the London Garage Conversion scheme and lower-interest start up loans, now is the time to plan your own business. When it comes to company formation and start up administration, such as VAT registration, you can count on Eformations to efficiently assist you.

How to change the ownership of a company

20 February 2014

In the course of a company’s life it may be necessary to change the ownership of the company. It could be for a variety of reasons such as:

–          You might be selling the company on to someone else

–          You might have made a mistake in submitting information when you registered the company.

We have often come across the latter scenario. In the digital age of online company formation it is easy to enter the wrong name or the wrong address and click the submit button.

Imagine a scenario where the company was supposed to be in your name, you should have been the director and the shareholder but you gave your daughter’s details in the shareholder’s page when forming the company. Now that this mistake is made, you are having difficulty opening a bank account.

So, what is the solution?

You will need to transfer the shares from your daughter’s name to your name by completing a form J30 stock transfer form. In order to do this, you will need your daughter’s consent. This can be obtained on the stock transfer form which has to be completed with your daughter’s name, address and signature in the box asking for the details of the transferor. The details of you, the new shareholder will have to be entered in the box asking for the details of the transferee. On the back of the form, your daughter will have to make a declaration that the share or shares are being transferred as a gift and no money was exchanged. This will make the transfer of shares exempt from stamp duty.

However, your problems will not end here because the stock transfer form is an internal company document and the share transfer does not have to be registered at Companies house until it is time to file the company’s annual return. A member of the public or bank official carrying out a search at Companies House will still see your daughter as the registered shareholder (owner) of the company until an annual return has been filed to show the transfer of shares. Until such time your only evidence of ownership of the company will be the signed stock transfer form and the share certificate which the company secretary should have issued from the company’s statutory register, assuming that you purchased a statutory company register when you registered the company.

Company Restorations

19 February 2014

We sometimes come across clients who have used our company formation service to form a company and sadly two years later they come back to us not to form another limited company or to prepare accounts but to restore the same company by using our company restoration service which is a much more costly service due to the extensive procedures that are sometimes involved.

So, what went wrong?

Company Directors were negligent in lodging a simple form called the ‘Annual Return’ with the Registrar of companies which has dire consequences.

And what were the consequences?

The company had more than £10,000 in its bank account which the directors could not access because the bank had frozen the account and passed the funds to the Bona Vacantia department of the Treasury, much to the surprise of the directors!

All was not lost though. With our years of experience in restoring a company we were able to restore the company to the Register and claim the money back from the Treasury.

Our advice

  • Stay on top of your paper work.
  • Companies House agency is making it easier to file forms by making it available online. Take advantage of online filing available at www.companieshouse.gov.uk
  • If unsure of how to do it, get in touch with us before it is too late. We can file annual returns and annual accounts for your limited company.

Corporate Taxation: Company VAT Registration and related Businesses Legislations

12 February 2014

Taxation is a financial levy imposed on legal entities, or individuals, by the government of the country where they operate or reside. In the UK, the HMRC is the governing body for taxation. This setup enforces and ensures the strict regulations surrounding taxation are being followed, as failure to pay tax is punishable by law. There are many forms of taxation that the government stresses companies should pay for or legally pay attention to including company VAT registration.

Tariffs

This is a form of taxation that only affects businesses that import or export goods from companies operating on foreign grounds. Tariffs are used as a measure of controlling trade across borders to encourage domestic and indigenous industrial efficiency. For instance, if established multinational companies started importing raw materials from foreign countries only, the domestic raw material industries would suffer majorly. Therefore, tariffs are simply a way of limiting, if not deterring, companies from excessive foreign trading.

Windfall Tax

The Labour government introduced windfall taxing in 1997, as it was discussed that many private organisations had been unfairly benefiting from their helpless customers. Windfall tax is essentially a form of taxing where organisations are ordered to pay a certain percentage of their annual gains, especially following an unexpected increase in revenue.

Withholding Tax

Also known as income tax, this is a form of money that the government deducts from each individual’s salary before payments are made. Each company is instructed to deduct this amount of money from each employee at monthly-fixed rates depending on how much they earn.

Value Added Tax

This form of taxation is imposed mainly on consumption that companies like us at eformations can help with. Value Added Tax (VAT) applies to both the product seller and buyer. From the buyer’s perspective, it is a levy added to the purchase price, and from the seller’s point of view it is essentially a tax for adding value to the product before selling it. For companies, this is a complex form of taxation, as the government enforces corporate VAT registration to ensure each organisation is paying this levy.

As mentioned earlier, failure to comply with the taxation legislations can result in damaging consequences; such as hefty penalty fines. It is common that companies will struggle to keep up with these and the many other regulations surrounding them, and this is why companies like us at eformations are available to offer assistance with compliance tasks like company VAT registration. We are a fully established organisation with a team of employees who have the necessary qualifications to guide you through a fully compliant registration procedure. If need to make an enquiry regarding our services, please contact us today.

Top 5 reasons for corporate name change

04 February 2014

Many successful business people will understand that business does not always turn out the way you expected when they started as an inexperienced entrepreneur. For those whose brand end up enjoying industrial prosperity, there surely comes a time when brand identity no longer matches what the company stand for. This is one of the many reasons why companies then go ahead and make propositions for corporate name changes. This article essentially discusses the most common reasons why organisations feel the need of changing their original tag.

Outdated image

Changing company name because of the brand image is common in both companies that have been in existence for several years and even the newer ones. With the ‘old’ companies, it might be a case of trying to modernise the brand and compete with newly formed and more fashionable competitors. Newly formed companies might have been started focusing on one trend and a shift in consumer tastes could force them to alter their branding.

Mergers and demergers

A changeover in leadership can lead to instant rebranding of the organisation. In the case of a merger, the umbrella company typically chooses to change the name of the company being taken over to suit the their philosophies. Changing a company name after a demerger is to essentially symbolise independence and dissociation with the company that had previously taken over.

Expansion

As mentioned earlier, it is common that success can force corporate rebranding as the company seeks to expand into greener and less saturated pastures. For example, a company contemplating globalisation could change names to a simpler name for recognition purposes to overcome possible language barriers.

New stakeholders

Commanding stakeholders like a CEO have the power to change the branding of an organisation, whether it is the business or the logo. Such authoritative figures tend to rebrand the organisation based on their visions and goals for the organisation.

Market change

Apart from profitability, survival is a key issue for businesses and if their existence is under threat, many companies tend to go down different channels and incorporate strategies like product diversification into their operations. In the case of the diversified product being successful, the company could change the name of their companies in the different market for suitability purposes.

There are many other reasons why companies might want to change their names. However, the process can be tough and daunting. If you are in such a situation, seeking professional help with name changing is a good idea. Here at eFormations, we offer fully comprehensive help with company name change and other legal services including limited company registration. We are always available to help and our fully qualified team of employees will be able to guide you every step of the way. Please contact us for more information about our fantastic services.