Starting Up and Company Formation
Choosing the right structure and getting the paperwork right at the outset sets the tone for how a business will be owned, managed and funded. This area focuses on the documents you need to form a new business, record the early decisions of its owners and directors, and put in place basic governance from day one.
It covers the main structures used by SMEs, including sole traders, private companies limited by shares, partnerships, limited liability partnerships (LLPs) and joint ventures between existing businesses. The templates are drafted so they can be scaled up or down to match the size, complexity and risk profile of your organisation.
WHAT DOES THIS SECTION COVER?
- document the formation of a new private company and its early decisions
- put in place agreements between founders, directors, partners or members
- set up joint venture arrangements between existing businesses
- adopt core corporate policies and statements for a new or growing business
The templates are drafted so they can be adapted to the size and complexity of your organisation.
WHEN SHOULD YOU USE THESE TEMPLATES?
- starting a new business and deciding on the most appropriate structure
- forming a private company with one or more directors
- documenting the relationship between business partners or LLP members
- setting up a joint venture with another company or individual
- introducing basic company policies and statements at an early stage
- formalising how deeds and contracts will be signed on behalf of the business
They are designed for typical SME start-up and early-stage scenarios. More complex or regulated structures may require bespoke advice and documentation.
Starting Up and Company Formation is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.
Frequently Asked Questions
I am starting a business but do not know which structure to choose. What are my options? +
The four main structures are sole trader (simplest, but you are personally liable for debts), a private limited company (a separate legal entity, so liability is limited to what you invest), a partnership (two or more people sharing profits and personal liability) and an LLP (partnership flexibility with limited liability). The right one depends on risk, profit level and growth plans. Simply-Docs has formation templates for the company, partnership and LLP routes.
How do I actually set up a private limited company? +
You register the company at Companies House. You choose a company name ending in Limited or Ltd, appoint at least one director, have at least one shareholder, give a registered office and email address, and prepare a memorandum and articles of association. Online registration costs £100 and is usually completed within 24 hours, after which you receive a certificate of incorporation. Simply-Docs provides the formation documents, including memorandum, articles and first board minutes.
Do I need a written agreement if I am going into business with someone else? +
It is strongly advisable. A partnership is the relationship between people carrying on a business in common with a view to profit, and without a written agreement the Partnership Act 1890 default rules apply, which are rarely what partners want. A partnership agreement sets profit shares, decision making, capital, partner exits and how the partnership ends. Simply-Docs offers partnership agreement templates, and LLP agreements if you want limited liability.
What is the difference between a partnership and an LLP, and which should I pick? +
A general partnership is simple to run but partners are personally liable for the firm's debts. An LLP is a body corporate with a separate legal personality, so liability is generally limited to what each member has agreed to contribute, but it must register at Companies House and file information publicly. Choose a partnership for simplicity and privacy, or an LLP where limiting personal liability matters. Simply-Docs has templates for both.
Who can sign contracts and deeds on behalf of my new business? +
It depends on the structure and what your constitution says. For a company, directors usually have authority, and the law sets formalities for valid execution, for example a deed signed by two directors or a director and witness. Getting this wrong can make a document unenforceable. Simply-Docs provides guidance and templates on signing deeds and contracts, covering the execution formalities for companies, partnerships and LLPs.
