BUSINESS LAW ASSIGNMENT

Business Law Assignment



Business Law Assignment

Introduction

Planning to set up and run your own small business in United Kingdom (UK) is a complex task that requires much dedication and hard work in order for it to be successful. Even though, your own small business is great, individual attributes, as well as, the right sort of personality is necessary to cope up with the rewards of starting up own small business. There are various important steps involved in setting up a small business, in order for you to get things perfect with positive outcomes. There is always some component of trial and error in starting up the business. In 2011, there were 2.08 million enterprises registered for Value Added Tax (VAT) as compared to 2.10 million in 2010. There is a fall of approximately 0.9 percent in enterprises within a year, as well as, marked reduction in the amount of sole proprietors and partnerships. On the other hand, the amount of corporate businesses increased by approximately 0.6 percent (Business Start-Up UK, 2013).

Discussion

There is no requirement for permission in establishing a small business in UK. However, there are several regulations involved in using business. Furthermore, certain small business sectors may also requires licences or authorizations, such as finance, defence or oil exploration. On the other hand, setting up a small business of computer sales and repair, requires no such legal requirements. In UK, the legal basis for starting up a small business of computer sales and repair involves the Companies Act 2006, which offers a comprehensive code of company law (Dimireva, 2012).

The Companies Act 2006

In the English law, the Commonest Act 2006 is one of the longest statutes, with 1300 sections and more than 40 sets of accompanying regulations. The foundation of this massive piece of legislative reform adopts the “Think Small First” approach. This Act was originally drafted for the governance of larger companies while exempting the small, private companies. This is done by application of minimum requirements for all companies, adding more layers for public listed companies (APOD, 2011).

The primary rationale for the Companies Act 2006 was to establish a simple yet modern regulatory framework, promoting growth, enterprise, investment, as well as, employment. This newly formed modernization of the Company Law aimed to provide considerable benefits to the small, private businesses by removing regulations that were substantively unnecessary. Thus, making the law much more comprehensive, as well as, accessible (APOD, 2011).

Legal forms of businesses

Before setting up a small business, it is essential that one comprehends the various legal forms of business, which are present. The legal structure, under which all businesses of the nation are registers, affects the way, the business it taxed, as well as, the accounting records they are required to keep.

Sole traders

The sole traders own the business themselves. The owner enjoys the benefits of independence, the ease of setting up and running the business according to your will, as well as, taking up all the ...