Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Company formation and marketing basics 18.02.2014

233 views

Published on

Royal Holloway Enterprise Academy Introduction Presentation

Published in: Business
  • Be the first to comment

  • Be the first to like this

Company formation and marketing basics 18.02.2014

  1. 1. ROYAL HOLLOWAY ENTERPRISE ACADEMY Company Formation and Marketing Basics 18.02.2014
  2. 2. ROYAL HOLLOWAY ENTERPRISE ACADEMY What kind of business form should I take?
  3. 3. ROYAL HOLLOWAY ENTERPRISE ACADEMY Overview • Have to chose a structure • Structure defines your legal responsibilities – – – – Paperwork Taxes How you get paid Personal responsibilities
  4. 4. ROYAL HOLLOWAY ENTERPRISE ACADEMY Types of business • Most UK businesses are – Sole traders – Business partnerships – Limited companies • Other legal structures exist for social enterprises – Charity – Community Interest Companies (or CICs)
  5. 5. ROYAL HOLLOWAY ENTERPRISE ACADEMY Sole Trader • Individuals running their own business • Keep all profits after tax • Can take on staff
  6. 6. ROYAL HOLLOWAY ENTERPRISE ACADEMY Sole Trader Responsibilities • Personal responsibility for: – any losses your business makes – bills for things you buy for your business, like stock or equipment – keeping records of your business’ sales and spending
  7. 7. ROYAL HOLLOWAY ENTERPRISE ACADEMY Registering as a sole trader • Must register with HMRC as soon as you can after starting your business • Legal stuff: – Make a Self-Assessment tax return each year – Income Tax on profits and pay National Insurance – Register for VAT if you expect your business’ revenue to be more than £79,000 a year
  8. 8. ROYAL HOLLOWAY ENTERPRISE ACADEMY 'Ordinary' business partnerships • You and your partners ‘share’ responsibility • You get a share of the profits • Personally responsible for bills and losses • A ‘partner’ can be another business
  9. 9. ROYAL HOLLOWAY ENTERPRISE ACADEMY Setting up a partnership • Choose a ‘nominated partner’ • Register partnership with HMRC • Each partner must register as an individual with HMRC – Personal tax return – Pay income tax on partnership’s profits and individual National Insurance
  10. 10. ROYAL HOLLOWAY ENTERPRISE ACADEMY Advantages of non-incorporation • Simpler for taxation purposes – no legal need to keep accounts (though advised) • Don’t have to publically issue your accounts • Can withdraw cash from the business without any tax effect • Claim capital allowances, e.g. mobile phone bill, running a car, etc.
  11. 11. ROYAL HOLLOWAY ENTERPRISE ACADEMY Private Limited Companies • Appoint directors and register with Companies House – Certificate of Incorporation – Legal entity in its own right – Liability is limited to its members • Limited by shares • Limited by guarantee
  12. 12. ROYAL HOLLOWAY ENTERPRISE ACADEMY Limited by shares The liability of each member is limited to the original value of the shares issued to them •A shareholder has 500 shares originally valued at £1 each. •They have previously paid for 100 shares, ie £100. •At the time the company fails, they’re liable up to the original value of shares they haven’t paid for, i.e. £400.
  13. 13. ROYAL HOLLOWAY ENTERPRISE ACADEMY Limited by guarantee • Members of the company financially back it up to an amount agreed previously, if things go wrong.
  14. 14. ROYAL HOLLOWAY ENTERPRISE ACADEMY Before you register • the company’s name and registered address • at least one director • at least one shareholder • details of the company’s shares - known as ‘memorandum of association’ • rules about how the company is run known as ‘articles of association’
  15. 15. ROYAL HOLLOWAY ENTERPRISE ACADEMY How to register • online - but only if the company is limited by shares and uses model articles of association – £15 • by post - you must do this if you change the model articles or use your own – £40 • using an agent
  16. 16. ROYAL HOLLOWAY ENTERPRISE ACADEMY Company name • Must end in either ‘Limited’ or ‘Ltd’ • The name can’t: – be the same as any other name on the Companies House index of names – contain a ‘sensitive’ word or expression unless you get permission – suggest a connection with government or local authorities – be offensive • You may have a trading name which is not the same as your company name
  17. 17. ROYAL HOLLOWAY ENTERPRISE ACADEMY Shareholders • Statement of capital – the number of shares the company has and their total value – names and addresses of all shareholders • Every limited company must have at least one shareholder • Shareholders are owners of the company and they have certain rights
  18. 18. ROYAL HOLLOWAY ENTERPRISE ACADEMY Corporation Tax • Within 3 months you must tell HMRC about your new business • You will need to set a filing date, and will be given a date when your company must pay Corporation Tax.

×