Blog - limited company

5 Tips For Legally Forming And Running A Business

25 March 2015

Forming and running a business is an exciting idea, but the legal side of business can be a daunting prospect. That’s why we’ve put together five tips that will help you on your way to legally forming and running a business. By avoiding making mistakes, you’ll save you and your business money and time and get the legal side of things out of the way, so you can focus on running your business.

Check your company name and register it

This is one of the first things you should do when forming a company. It’s a good idea to register your company as a limited company as it offers more protection than being a sole trader. It is a great idea to talk through these options with a business expert or accountant, as they will be able to explain the difference. Give us a call if you’d like to talk it through on 020 8232 5479.

Assuming you are going to register as a limited company, there are some important things to remember:

  • The company name must end with the word Limited or Ltd.
  • The company name must not be the same as, or similar to another already registered company name. You can check this here: https://blog.eformations.co.uk/
  • Your company name cannot contain any restricted or sensitive words.

If your idea is an original one, consider patenting and copyright

If you have a great original idea for a business, it’s reasonable to not want anyone else to steal your concept. If you are concerned that this may happen to you, it’s a great idea to look into patenting, copyright and even trade marking, which may help to protect your idea and give you the legal grounds needed to go after anyone who does attempt to steal your idea.

Before rushing into spending a lot of money on patenting an idea, it’s a good idea to find out what the patent is actually worth and how much it will protect you. A great way of finding this out is to ask the question ‘what would someone need to change in order to not break the patent?’ and you’ll have your answer. You may be surprised how easy it is to get around!

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Organise your finances

It’s a good idea to organise your business’ finances as soon as you start your business. This means less time searching for receipts and being bogged down in a mountain of paperwork later. Finding an accountant you like early on in business is a great idea.

You can also get organised using your mobile phone! We recently wrote an article on accounting apps that can help your business keep track of money. Read it here: https://blog.eformations.co.uk/2014/11/

Read up on employment law

If you’re going to be taking on employees in your new business, there is a lot you need to know in order to comply with the law. A great way of learning all you need to know about employment law is to sign up for a reputable short course, run by an expert. Alternatively, at the start, hire freelancers to avoid the paperwork and legislation associated with employing staff.

Seek professional advice

If you’re considering forming a company and a business, we can help you to get it right first time. From helping you to check whether or not your chosen name is available, to online company formation and much more, visit https://blog.eformations.co.uk/ to start your business today. Alternatively, call us on 020 8232 5479 for a friendly chat and discover how we can help your business today.

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