Considering Setting Up a Business?
Corporate & Commercial Paralegal Denitsa Slaveva presents her top tips to consider when planning to set up a business.
1. Choose your business structure and consider the benefits of the different structures (i.e. limited partnership, partnership, limited company by shares/guarantee).
2. If you have chosen to set up a private limited company by shares and there will be more than one shareholder involved – consider preparing a Shareholders Agreement to set out the obligations and relationship between the parties.
3. Spell out your terms & conditions. Make sure that all clients/customers are aware of your terms and conditions and they agree to those.
4. Consider limiting your liability as a shareholder and including special provisions in your agreement dealing with transfer of shares and the process of exiting the company.
5. Consider getting business insurance or key man and capital protection insurance to provide the company with a pot of money in the unfortunate event of a key stakeholder’s death or significant change in circumstances.