Comprehensive Report: UK Business Organisations and IOM Solutions

This report provides a comprehensive overview of business organizations in the UK, focusing on the legal structures available, including sole trader, general partnership, partnership, and limited liability companies. It examines the laws governing businesses, such as employment, contract, securities, labour, and tax laws, highlighting their importance in efficient business operations. The report analyzes IOM Solutions, a real estate agency, as a case study, offering recommendations on the most suitable business structure for their operations. It also covers the roles and responsibilities of directors, the implications of partnership acts, and the importance of various business documents like the memorandum and articles of association. The report concludes with a discussion on the advantages and disadvantages of different business structures and emphasizes the significance of selecting the right structure for business growth and development.

Business Organisations

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Businesses and organisations in the UK ....................................................................................3
The legal business structure of UK companies ..........................................................................5
Recommendations for IOM Solutions........................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business organisation refers to the entity which has been formed for the purpose of
carrying out the commercial enterprise. These are the kind of organisations which is predicated
on the law of systems which exchanges and governs the contract, incorporation and property
rights as well. The enterprises of business basically takes one of the three forms which include
individual proprietorships, partnerships or limited liability companies(Addis and Kutar., 2018).
At the organisational level, if business is not organised into proper form then tasks can remain
into the pending position, paper work also get disorganised and valuable time can be result into
fruitful results. The report will cover discussion about the businesses and organisations in the
UK. In addition to this, the report will cover analysis about the legal business structure of UK
companies and also about the recommendations for IOM solutions.
MAIN BODY
Businesses and organisations in the UK
IOM Solutions is an organisation which is a private limited whose business nature is
related to the agencies of real estate. The company is located into Singapore and also act as the
part of related services industry and system design as well(Crick and et.al., 2018). There are
different kinds of laws at the organisational level which have been followed for executing the
results into right manner. The organisations of business have followed different kinds of laws
which are explained into the following manner:
 Employment law: It is the law which regulates the relationship between employees and
employers. It is about what employers can expect from their employees and what
employees have been asked to do.
 Contract law: It is a kind of agreement which gives rise to obligations that are
recognised by law or enforced as well.
 Securities law: It is the law which are designed to protect investors or the people who
owns securities as well. These are the laws which are designed to ensure about having the
accurate information regarding the interests that they are buying.
 Labour law: It refers to the body of law which has applied to such matters as
remuneration, employment, trade unions, conditions of work and industrial relations as
well.

 Tax law: It is basically the obligation of all organisations to pay their taxes on the timely
basis, failure to follow by which will be violation of corporate tax laws.
For handling the business transaction of an organisation into efficient manner it is
important to use the online bill payment system and keep the track of the receipts. It is important
to use financial professional for additional help and also use the computer program to manage
the finances(Dawson., 2018). It is necessary to create multiple accounts for the business and
train the staff accordingly and handles the transactions into secured form. In this manner,
financial transactions can be monitored. Within the business, there are liabilities which needs to
be paid back into appropriate manner. Vicarious liability is when the individual or business
which are held financially into responsible manner for the actions of another person or party.
There are different kinds of negligence within the business which act as a failure for meeting out
the standard behaviour that has been established in order to protect the society against the risk
which is unreasonable.
There are different kinds of roles and responsibilities of a director at the organisational
level which includes it act within the powers and also promote for the success of a company. It
also include the exercise for the reasonable care and the exercise for independent judgement,
skill and diligence as well. They also not accept the benefits from third parties and also
responsible for avoiding the conflicts of interest(Goworek and et.al., 2020). It has been observed
that businesses in UK follows the partnership act 1890 that provides the unless agreed to the
contrary. At the organisational level, any partner can be terminated into the partnership at any
point of time by giving notice to others. This notice does not have the written form and will take
on the immediate effect which is called as termination of partnership.
There are different documents which have to be maintained within the business where
memorandum of association is a type of document which is legal that specifies the scope of
activities of an organisation and information about the shareholding of the company. There is
one more document which is called as the articles of association which forms the document that
specifies the regulations for the operations of an organisation and also defines the purpose of
company as well. In this way, business organisations in UK work into well mannered way.

The legal business structure of UK companies
Sole trader: A sole trader refers to the simple business structure where one individual
owns and runs the business into entire form. It is that type of business which has been formed by
the owner itself and there is no legal conventions which are obliged to initiate the sole
proprietorship form of organisation. Sole traders are only required to pay tax if the profits exceed
their personal tax allowance (Goworek and et.al., 2020).The sole traders have unlimited liability
which means that the sole trader is personally liable for their debts of business. The main
advantage of being a sole trader is that they start on the immediate basis and also follows the
simple registration process as well. There are also certain fixed overheads and also have
complete control over it. There are certain disadvantages which includes personal liability,
perceive the lack of prestige and also have tax planning limitations as well.
General Partnership: It is a kind of relationship which subsists between two or more
persons which carries out the business in common with a point of view of profit. General
partnership has been formed on the basis of two conditions which includes the company must
have two or more owners. All partners must agree to have unlimited personal responsibility for
any debts. Within the general partnership, partners agree to have the unlimited liability where
liabilities are not capped and can also be paid through the seizure of the owners assets.
Partnership: It refers to the form of business where two or more people share their
ownership and responsibilities as well in order to manage the company and income or losses
which the business generates. Partnership is formed out of the contract and the co ownership is
formed either from the agreement or by the operation of the law as well. A parter is an agent
which represents the other partners and the co-owner is not a representative of the other co-
owners (James., 2018). It has been observed that partnerships are not taxed on their profits but
the individual partners are chargeable to income tax on their share of their partnership profits. It
has been on the capital gains tax on their gain into context of partnership assets. There are
certain liabilities of partnerships where if partnership is experiencing loss of profits then partners
have to understand how these losses are occurring and who should be responsible for it.
A partnership can be dissolved in every case of happening of any event that makes it
unlawful for the business of the firm to be carried on or for the members of the firm to carry it on
partnership.

Partnership has lots of advantages which includes it is less formal with fewer obligations
and easy to initiate as well. It also contribute into context of sharing the burden and also have
access to knowledge, skills and experiences as well(Kirton and Greene., 2019).It also contribute
into context of better decision-making and also have privacy level where ownership and control
are into combined forms. There are certain disadvantages of partnership where it has the personal
liability and also have fewer tax-saving options as well. They cannot make their decisions on
their own and also have higher level of potential of internal conflict as well. It is also less
prestigious in terms of nature as well.
Limited Liability: -Limited liability company may be defied as a hybrid unincorporated
business structure that combines the tax model of sole traders and partnerships with the
protection of individual assets provided by the corporation. This is basically a private limited
institution whose management is governed under the companied act 2006. This act gives full
detail of all the liabilities which have to be followed. This act also lays down the different types
of provision which determined the various things like how a company is defines as well as
operated, requirement to form a private company, how to dissolve a firm and many more. Within
the limited liability company, the owner of the firm is called the members.
In order to form the limited liability company, Article of Organization (AOA) need to be
filled by the company members which is available through the secretary of state office. This
document is basically required the basic info of the business comprising off the names of
members and the location of performing the different task.
For the federal income tax purpose, the Limited Liability company within the UK is
being considered or treated as a pass through entity. This states that the firm (LLC) itself do not
pay the taxes on their income (Owolabi and Awoniyi., 2020). The taxes have been paid by the
members of Limited liability company on the basis of share of their profit. So the income of
business is not taxed hence the individual is taxed.
A Limited Liability company is basically a separate legal entity which means that the
members of the firm are separate from the company. The members of the LLC company are not
responsible for debts and they don't own company's property. They hold some financial rights
which include rights in share of allocating company's profit and losses.

The advantage of limited liability company is that it has flexibility in sharing the profits
as it is distributed on the basis of LLC terms and agreement of operation(Pinheiro and et.al.,
2019). LLC owner's personal assets are protected from business debts as if company liquidate
then the share of assets remain with the owner, it is not distributed among members.
The disadvantages of the LLC is that if firm raises the fund through the equity route, it
will have share the ownership of business. This will lead to the share in the profit among one
more members and the decision making power also passes on with members.
Recommendations for IOM Solutions
Today's dynamic business environment, there are different types of business structure
such as sole trader, general partnership, partnership and limited liability can be followed . The
advice for IOM Solution is that they can follow a particular partnership business structure which
makes them more relaxed and the burden can be shared equally(Selviaridis., 2020). There are
certain advantage in IOM Solution of partnership that business have capital availability and have
greater access to the borrowings. But such structure of business can be easily lead to change in
the legal structure when condition changes and is limited to external regulation. So it is
recommended that rights kind of action should be taken which can help the company to grow in
a effective manner.
CONCLUSION
The above stated report concludes that business organisations are very important within
the economy in terms of growth and development. It has been concluded that there are different
forms of businesses which include partnership, limited liability, sole proprietorship etc. It has
been determined that there are different kinds of laws which have been followed into the
business organisation so that organisation can be run into fast pace manner. There are certain
kinds of recommendations which are helpful for the company's growth and development as well.
So its very important that business should be organised into appropriate terms so that no conflict
situation can be arises at the organisational level. That's why its very important that business
organisation should be organised into appropriate terms.

REFERENCES
Books and Journals
Addis, C. and Kutar, M. S., 2018, March. The general data protection regulation (GDPR),
emerging technologies and UK organisations: awareness, implementation and
readiness. In UK Academy for Information Systems Conference Proceedings 2018 (p.
29). UKAIS–UK Academy for Information Systems.
Crick and et.al., 2018. Risks/rewards and an evolving business model: A case study of a small
lifestyle business in the UK tourism sector. Qualitative Market Research: An
International Journal, 21(2), pp.143-165.
Dawson, D., 2018. Organisational virtue, moral attentiveness, and the perceived role of ethics
and social responsibility in business: The case of UK HR practitioners. Journal of
Business Ethics, 148(4), pp.765-781.
Goworek and et.al., 2020. Managing sustainability in the fashion business: Challenges in product
development for clothing longevity in the UK. Journal of Business Research, 117,
pp.629-641.
Goworek and et.al., 2020. Managing sustainability in the fashion business: Challenges in product
development for clothing longevity in the UK. Journal of Business Research, 117,
pp.629-641.
James, L., 2018. Making cyber-security a strategic business priority. Network Security, 2018(5),
pp.6-8.
Kirton, G. and Greene, A. M., 2019. Telling and selling the value of diversity and inclusion—
External consultants' discursive strategies and practices. Human Resource Management
Journal, 29(4), pp.676-691.
Owolabi, S. A. and Awoniyi, O., 2020. Comparative Study of Financial Reporting Regulation of
Not for Profit Organisations in Nigeria with United Kingdom and United States of
America. Educational Research (IJMCER), 2(6), pp.39-47.
Pinheiro and et.al., 2019. 'For the English to see'or effective change? How supply chains are
shaped by laws and regulations and what that means for the exposure of modern
slavery. Journal of the British Academy, 7(s1).
Selviaridis, K., 2020. Effects of public procurement of R&D on the innovation process: evidence
from the UK small business research initiative. Journal of Public Procurement.