Tens of thousands of businesses are set up each year in the UK. The vast majority of these will be set up as private companies limited by shares. Therefore this month we have added two new templates to our Company Formation Documents.
Once it has been decided by the relevant parties that the most appropriate vehicle to setting up in business is a private limited company, customers will need to think about the mechanics of how the company will be formed and operated. We have added a very useful Company Formation Checklist including the key points that parties need to consider when setting up a private company. Our checklist includes not only the requirements of Form IN01 but other issues such as company assets, financing and shareholder arrangements that are essential to get right in order to ensure the smooth running of the newly formed company and business.
We have built on this checklist by adding a brand new MOU (Formation of a Company). This is designed to be used where two parties wish to form a company in order to run a business together and have reached a preliminary deal but have yet to negotiate the full legal and commercial terms and other details which will comprise the whole arrangement. This MOU is intended to be a precursor to a more formal agreement; likely to be a shareholders’ agreement.
The most successful businesses are often those where the parties have put thought and planning into how the business will run. These two new templates are designed to help all those customers interested in setting up a new business through the vehicle of a private limited company or those advising such companies.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific