Before setting up a company, it is essential to seek advice on the steps required. This is especially true when you are setting up your first business.
Equally when offered the appointment of director care needs to be taken to ensure you have a full understanding of the legal responsibilities involved.
Can anyone be a director?
Generally there are few restrictions on anyone wishing to become a director of a limited company in the UK. In most cases, as long as you are an adult and are not a bankrupt or been disqualified from becoming a director, then there are few restrictions.
Owning A Company
The owners of a company should have a shareholders agreement in place setting out the terms of ownership in order to avoid costly disputes from arising.
It is important to have procedures in place that govern the running and operation of the company. This is important both for directors and shareholders for the day to day management and to make it easier to attract additional funding or investment when required.
The majority of businesses require financing to get started. This can be raised via family investments or a formal arrangement with a lender. In all cases it is important to understand the implications of taking on finance, especially if it involves the granting of any security or personal guarantees.