- www.finnlaw.co.uk
- 01288 356 256
Setting up a business involves complying with a range of legal requirements. Find out which ones apply to you and your new enterprise.
What particular regulations do specific types of business (such as a hotel, or a printer, or a taxi firm) need to follow? We explain some of the key legal issues to consider for 200 types of business.
While poor governance can bring serious legal consequences, the law can also protect business owners and managers and help to prevent conflict.
Whether you want to raise finance, join forces with someone else, buy or sell a business, it pays to be aware of the legal implications.
From pay, hours and time off to discipline, grievance and hiring and firing employees, find out about your legal responsibilities as an employer.
Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.
Commercial disputes can prove time-consuming, stressful and expensive, but having robust legal agreements can help to prevent them from occurring.
Whether your business owns or rents premises, your legal liabilities can be substantial. Commercial property law is complex, but you can avoid common pitfalls.
With information and sound advice, living up to your legal responsibilities to safeguard your employees, customers and visitors need not be difficult or costly.
As information technology continues to evolve, legislation must also change. It affects everything from data protection and online selling to internet policies for employees.
Intellectual property (IP) isn't solely relevant to larger businesses or those involved in developing innovative new products: all products have IP.
Knowing how and when you plan to sell or relinquish control of your business can help you to make better decisions and achieve the best possible outcome.
From bereavement, wills, inheritance, separation and divorce to selling a house, personal injury and traffic offences, learn more about your personal legal rights.
Going public - floating your company's shares on a stock market - can allow a company to raise additional equity finance or provide an exit for existing investors. Going public also provides a market value for trading shares in the company. This makes it easier to use company shares to fund an acquisition or as an incentive for employees.
A company float usually only suits companies with good growth prospects and a strong management team. Going public, and continuing to be a public company, involves substantial effort and costs together with an increased regulatory burden and public scrutiny. Before deciding on a company float, it's worth reviewing whether another option such as a trade sale is a better option.
For UK companies, there are two principal choices of market. The AIM market is the international exchange market for smaller and growing businesses. There are no requirements for businesses floating on AIM to be of a certain size or to have an established trading record. The other option is to be quoted on the London Stock Exchange Main Market. Only the largest companies tend to choose this option.
In legal terms, companies on AIM are 'unquoted', which can offer significant tax advantages for private investors. For example, shares in a family business can be traded on AIM but still benefit from inheritance tax (IHT) relief.
Costs for AIM are substantially lower than for the main market as are the regulatory requirements - which are designed to encourage growth. Despite that, the costs of going public are typically in excess of £100,000 with continuing annual fees of more than £5,000 payable to AIM in addition to your nominated adviser (Nomad) and accountant fees.
You must appoint an AIM nominated adviser (Nomad) or a Main Market sponsor if you want to float your company on AIM. Your corporate adviser manages the float process and provides continuing advice on meeting market requirements. Some corporate advisers also act as stockbrokers, helping you raise funds during the float.
You also need a lawyer, an accountant and a registrar who handles applications for shares and the share register. You may also want to appoint a PR adviser to help raise your profile with investors and manage investor relations. As with your corporate adviser, you should look for advisers with relevant experience. Make sure you have a clear agreement on what services will be provided and what the fees will be.
As with other forms of raising finance, your company needs to have a clear business plan and a strong management team. As part of the process, your advisers will help prepare key information and up-to-date accounts. All the key information about your company and the float is brought together in a prospectus.
You can go public without raising any new financing, a process called an introduction. But if the company wants to raise funds, you need to organise an initial public offering (IPO). You either offer shares to a selected group of investors (a private placement) or to the investing public at large (an offer for sale).
Your corporate adviser helps you establish the right price for your company IPO. This is typically based on expected future earnings. Smaller companies are generally less highly valued, though companies with exciting prospects can attract a premium rating.