Wisteria news category: Business tips

Holding companies and subsidiaries

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Broadly speaking, a “group” is a family of companies linked by their shareholdings in each other. A company which is controlled by another is known as a “subsidiary” company while a company which controls another is termed a “holding” company. Groups are usually formed in order to take advantage of the increased level of limited liability, to achieve greater flexibility of business administration or due to tax reasons and circumstantial necessities. Read full article »

Do you need a company secretary?

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It is not compulsory for private companies to have a company secretary. Many private companies opt to have a director to carry out the secretarial functions, which can be cost-effective for small companies. It is important to know that where a company chooses not to have a company secretary, all reference to the company secretary should be removed from its articles and company paperwork. Read full article »

Corporate Insolvency

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Companies with financial problems face a number of difficult decisions about the best course of action to take. A company stands a better chance of recovery if it recognises its financial problems at an early stage and takes appropriate measures to resolve them before creditors take matters into their own hands. If a company enters into a particular insolvency procedure, directors also become a subject of specific duties. Read full article »

Top 4 things you need to know about the role of Company Directors

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A company is a legal person and thus the individuals forming part of it must undertake its management by making decisions. Shareholder’s investment enables the company to exist, however, the directors are responsible for the day-to-day business of the company. Here are The Top 4 things you need to know about Company Directors, which will increase your knowledge and will give you a head start for a successful business. Read full article »

Shares and Share capital

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Shares are a form of company funding and can be held in the two most common types of company: private and public companies limited by shares. Shareholders get shares in return of investing in a company. These shares carry particular rights, the exact nature of which is defined by the “class” of the share and the company that issues them. Read full article »

Sole Trader vs. Limited company

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Choosing the legal structure of your business is one of the most important decisions one should make when forming a company. The structure is of a pivotal importance as it defines your legal, financial and personal responsibilities as well as the amount of taxes you are required to pay. Read full article »

Should I register for VAT flat-rate scheme?

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The flat-rate scheme is an optional VAT scheme designed to reduce the administrative burdens for small businesses. Unlike the standard VAT accounting, the flat-rate scheme saves time by shortening the process of recording VAT on sales and purchases. Read full article »

The importance of keeping minutes

It is a legal requirement under the Companies Act to keep minutes. Minutes are a record of what happened at a meeting of the board. They include details such persons present, issues raised and resolutions passed. Read full article »

Limited liability partnerships (LLP)

A partnership occurs when two or more individuals carry on a business with a view to profit. A limited liability partnership is a relatively new business structure introduced in 2000; it was originally designed for professionals, such as lawyers and accountants. It is designed to offer the flexibility of a partnership and the limited liability of a company. The partners involved have limited liability meaning they can only lose the capital they invest. However, like directors in a company, partners in an LLP can be held personally liable for negligence or fraud. Read full article »

Dormant company

A dormant company is one that has no financial transactions that would normally be entered into the accounts. Whilst HMRC allows for some transactions such as writing a business plan, Companies House allows no accounting transactions with a few exceptions, such as filing fees and shareholder capital being paid up. Read full article »