Legal Considerations to Start a New Business in the UK
Apply what you have learnt this week to the example below to see what activities are necessary to undertake when in the early stages of setting up a business in the UK.
Starting a Company:
Peter, Andrew & Sally have decided to start a business together.
They will be selling a brand-new way to clean carpets, with a machine that does not use harsh chemicals. The product will be sold via 3rd party retailers and also purchased directly from their on-line shop.
They will build the product locally.
In addition to investing their own savings, the founders have generated interest from Fiona (an experiences business angel) who has agreed to also invest in the enterprise. She would like to participate in the business to provide strategic input, but not as an employee.
Sally developed the product, it is completely novel. She would like to protect the designs, but also retain some benefit as it is the result of all her own work.
With this information, determine which documents or activity they would need to undertake in the early stages of their business. Ignore the sequence of events. Cut and paste the following into the correct column of the table – some may appear in multiple columns and some may not be needed at all.
Investment Term Sheet
Appoint a Director
Web Site T&Cs
E-Pay Merchant Agreement
Director Resignation Letter
Share Option Scheme
Business Sale Agreement
Article of Association
What’s required in the early stages of setting up a company in the UK: Example