LAW

Establishing a Legitimate Business Enterprise in the UK

Table of Contents

Introduction1

Part 11

Part 23

Part 34

Part 46

Conclusion9

References10

Establishing a Legitimate Business Enterprise in the UK

Introduction

The purpose of this paper is to provide a brief overview on how a business can be legally protected and developing the legal aspects of a new venture into reality. The paper aims to provide an overview of the issues that a person should be aware of when starting a new venture into successful business.

We aim to cover the legal aspects of conducting a business in United Kingdom that involves tax structure and legal rights of consumers in the U.K. industry. Also, we will first introduce the business in detail to understand that how will it be going to start and then we will be discussing its legal aspects.

Part 1

The business will be based on starting a retail outlet where products will be sold to the general public in an effective and convenient way. In order to do this, we aim at bringing commitment of quality, freshness and affordable prices to the customers. The business will require personnel in order to manage the work (Warren 1993: pp. 75-99). In addition to that, every project requires a cost for its implementation, which will be funded from the combination of debt and equity.

The number of required personnel is around 14 people by the end of the year that includes managers, market staff, delivery crew, sales staff, and cleanup crew.

In addition to that, the project will cost £91,535, out of which £ 30512 will be invested by the equity of the company and remaining will be funded with the help of borrowed loan.

The plan is to expand the space of the floor with around 5,000feet which will be used for the retail operation. The retail outlet will provide numerous products, and the new project is planning to provide the following retail products:

Basic necessities

Sea food products

Range of different food items

The project will cost £91,535. In addition to that, additional staff is required to assist customers when the retail stores will be expanded. The location will be selected based on market research and on the requirement of a retail outlet in the area where there is no other retail outlet situation that sells different varieties of products.

In U.K., there are three legal forms that are used by businesses for starting their operations. These forms include sole proprietorship, partnership, and the limited liability company, which is the ordinary corporate form (MacKie-Mason & Gordon 1997: pp. 477-505); however, it should not be confused with the US LLC. Limited partnerships are not used extensively in the UK, although when they are utilized it is frequently at least partly for tax reasons and usually for raising venture capital for property investment rather than for straightforward trading. A new legal form was introduced in 2000 in the UK, which is called the Limited Liability Partnership (LLP) although it is in fact corporate in legal form (Loutzenhiser 2007: ...