Blog - company registration

The First Year In Business: How Successful Startups Made It Through

07 October 2016

Starting a business is a big risk, but often one that is worth taking. A lot of the time, start-up owners are on the line financially and sometimes even mentally during their first year of business. That first year is critical in deciding whether your business will be a success or a failure. While no one possesses a magic formula that can tell you for sure if your business will be a hit or a miss, these tips will help you to make that first year as good as it can be and line your business up for its best chance at success!

Keep on trying

When you read about businesses succeeding or failing, you’d be forgiven for thinking that there are only two options – magical unicorn businesses that are instant runaway successes and disastrous failures – businesses that have always lacked potential and are doomed from the start. The truth is that most startup businesses usually fall somewhere in-between these two extremes.

In order to influence your business in the right direction, perspiration and perseverance is required in order to make your inspiration pay off. It’s also important to try and maintain a positive outlook despite the challenges that your business will inevitably face. If you can see past these challenges to the future of your business, then you’re well on your way to succeeding.

Work together

Time is a commodity during the first year of a start-up and business owners are often immersed in the business, but it can be good to take some time to talk to colleagues, friends and other advisors. Collaborating with these people is a great way to gain feedback, insight and even new ideas that could help your business.

Not every conversation will be of value to your business, but in general most will be positive and you’ll also be building yourself a support network that will be useful in years to come.

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Enjoy the journey

This is an important one! There are a lot of risks involved with starting a business and some challenges can seem insurmountable and create a lot of stress. However, the opportunity to pursue something you truly believe in, to see it grow and to be your own boss is considered by most to be excellent compensation for the initial tough times after forming your company.

Plan for the future!

Planning for year two is something that is important to do. Setting long term goals, such as having five year plans, is also recommended by many leading entrepreneurs. This will also help you to see past any challenges that appear during year one and aid you in finding a way through to business success. It’s also great to set goals so that you know exactly what each task you do is contributing to!

Are you ready to begin your business journey to success?

From forming your company with our online company formation service, to business accounting and much more, we’re here to help your business on its journey to success. Find out more about the services we offer on our website: blog.eformations.co.uk Or alternatively, give us a call for a friendly chat on: 0208 232 5479.

7 Reasons Why You Should Start An Online Business

02 March 2015

If you’re thinking about forming a company, you’ve probably already considered using online strategy to help your business succeed, but how about starting a business exclusively online? There are many benefits to running a business in the virtual world, especially if your product or service lends itself to the online platform. Here are seven reasons why you might want to start an online limited company as opposed to a more traditional limited company.

If you are considering forming an online business, it is a great idea to register as a limited company because it gives protection to the trader and helps to establish a trust in the customer when purchasing something from an online trader.

  1. You can work from anywhere

One of the main benefits of starting a business online, is that you can work from anywhere in the world without needing a physical premises. However, some businesses benefit from the gravitas of having a business address. If you would like a business address, but don’t wish to rent premises, why not have a look at our business address service?

  1. You can get started on a shoestring budget

A traditional business would require premises, stock, and employees, which means a large outlay of cash before the business has even started! Setting up an online business greatly cuts these costs as all you need to start selling is a website. You can also cut costs by outsourcing tasks rather than taking on permanent employees. This will mean less paperwork for your business!

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  1. It’s simple to go global

Using the internet makes it easy to reach and sell to customers all over the world. However, if you do have the intention of taking your products and services global, be sure to look into the latest VAT legislation for the EU.

  1. There’s easy access to a huge number of potential clients

With a traditional business, you are often limited by your location and can only market to those within a small distance of your business. When you’re online, it’s possible to reach a far wider range of potential customers, which should hopefully result in more income!

  1. Digital marketing is affordable and effective

Traditional forms of marketing, such as newspaper ads, are always a bit hit and miss, as it’s difficult to accurately quantify results. Marketing online, through Google or on social media, is a great way to run low budget, well targeted ad campaigns with results you can easily analyse.

  1. Your business can be open twenty four hours a day

By having a website, your business can be accessed at any time of the day or night, which customers find incredibly convenient.

  1. Be more flexible

Most traditional businesses work between the hours of nine to five, or similar. When you run your business online, you can choose your own hours to suit you and your business’s needs. If you’re working from home, you’ll also have more time to spend with family.

Are you starting a business?

At eformations, we offer a company formation service that can be done online in three to five working hours. You can find out more about this service and get started right now by visiting this page: https://blog.eformations.co.uk/how-to-buy/

If you have any questions or would like to discuss any of our other services, please contact us for a friendly chat on 020 8232 5479 or visit https://blog.eformations.co.uk 

 

 

 

 

What is Companies House?

10 September 2014

If you’re considering or are in the process of setting up your own business, you’ll probably have heard of Companies House. However, their exact function might still be a bit of a mystery. We’re here to fill you in on all you need to know about Companies House and how it affects your business.

The history of Companies House

In 1844, The Joint Stock Companies Act meant that companies could form more easily than previously when the incorporation of joint stock companies was only possible by private act or royal charter. This act meant that all companies that formed under it were added to a public register. The office of Registrar of Joint Stock Companies was then created to be responsible for maintaining this register.

Currently, company registration is dealt with under the Companies Act 2006.

Today, all limited companies in the United Kingdom are registered with Companies House. There are over three million limited companies currently registered in the UK and every year over 400,000 new companies are incorporated.

What Companies House does

Companies House has a number of functions. The main functions are:

  • Incorporating and dissolving limited companies.
  • Storing and examining company information which has been delivered under the Companies Act.
  • Making this information available to the public.

Where is Companies House located?

Companies House has 3 offices, in Cardiff, Edinburgh and Belfast.

The Cardiff office deals with companies incorporated in England and Wales, and with companies incorporated in Wales. Wherever the registered office of the company will be situated, in England or Wales, the company must be registered in Cardiff. England and Wales are a separate entity from Scotland.

When the registered office of the company is to be situated in Scotland, the company must be registered in Edinburgh.

When the registered office of the company will be based in Northern Ireland, the company must be registered in Belfast.

Upon incorporation of a company the certificate of incorporation produced by Companies House will clearly state where the company is incorporated.

Storage of Information

An important task of Companies House is to store data and provide that data to the public. The statistics of the companies registered at Companies House are published in the annual report.

Can I obtain data from Companies House?

Companies House have a website www.companieshouse.gov.uk where you can obtain information about all companies incorporated under the Companies Act. Most of the information is available digitally at a small charge.

Companies House also provide a wealth of resources and guidance booklets on numerous aspects of incorporating and running a limited company.  This information is available free of charge on their website.

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How can we help? 

While a lot of free information is available from Companies House, it is still a daunting task for a new entrepreneur to work through the jungle of technical information to set up a limited company and run it properly. Give us a call on 020 8232 5479 and don’t forget to visit blog.eformations.co.uk

Responsibilities of Directors of a Limited Company

19 August 2014

You have probably already carried out research on setting up a limited company and have learnt that it takes only one person to set up a limited company. Such a company is called a sole director company. On blog.eformations.co.uk you can appoint yourself as a director and a shareholder and off you go – your company is incorporated.  But, have you wondered what responsibilities are attached with this prestigious title?

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First of all, what are directors?

Directors are essentially people responsible for running the company. They are employees of the company. They work for the benefit of shareholders (members). A director’s prime duty, which he holds together with his fellow directors is to promote the success of the company for the benefit of its members.

The Companies Act 2006 introduced four duties of directors on 1 October 2007 and a further three came into effect on 1 October 2008.These seven duties are:-

  1. To act within the powers (CA2006 s.171) conferred upon them by company law and the company’s Articles of Association.
  1. To promote the success of the company (CA2006 s.172) and in doing so have regard to some matters, for example:

– The likely consequences of any decision in the long term.

– The interests of the company’s employees.

– The need to act fairly between members of the company.

Hence, they must ensure that the company is able to pay its debts and may be held personally liable if it is unable to do so.

  1. To exercise independent judgment (CA2006 s.173).
  1. To exercise reasonable care, skill and diligence (CA2006 s.174).
  1. To avoid conflicts of interest (CA2006 s.175). Directors must avoid situations in which they have or might have a direct or indirect interest that might conflict with the interest of the company.
  1. Not to accept benefits from third parties (CA2006 s.176). They must not use their position to further their own interest.
  1. To declare interests in any proposed transaction or arrangement (CA2006 s.177). 

Directors’ Responsibilities to Companies House

In carrying out their day to day duties directors have responsibilities towards Companies House. They have to prepare and deliver documents, on behalf of the company, to Companies House as and when required by the Companies Act.

  • The annual return.
  • The annual accounts.
  • Notification of any change in the company’s officers or in their personal details.
  • Notification of a change to the company’s registered office.
  • Allotment of shares.
  • Registration of any charges.

The chores of the directors seem onerous but can be considerably lightened by using our service. Call us now on 020 82325479.

Company Formation Set to Rise Due to new London Initiative

27 February 2014

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.