Glyndwr University ONL405: Business Structures and Incorporation

This report explores the key elements of business operations, focusing on the advantages and disadvantages of different business structures: sole trader, partnership, and private limited company. It details the characteristics, benefits, and drawbacks of each structure, covering aspects such as liability, management, capital, and ease of formation. The report also examines the process of incorporating a private registered company, including the necessary requirements such as digital signatures, DIN, and registered names. The report highlights the registration process, compliance with legislative requirements, and the role of government consultants in facilitating company incorporation. The conclusion summarizes the importance of proper registration and the various business structures available to entrepreneurs.

DESCRIBE AND
APPRECIATE THE KEY
ELEMENTS OF BUSINESS
EXPLAIN THE CONCEPT
OF ORGANISATIONAL
STRUCTURE

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Advantage and Disadvantage of setting up a business ...............................................................3
Incorporation of private registered company ..............................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Operation management is about to manage the operations of the organisation. This report
will demonstrate the advantage and disadvantage of setting up different types of business
ventures. Furthermore, project will discuss different documents that will be required by the
individual to incorporate business operations.
MAIN BODY
Advantage and Disadvantage of setting up a business
Businesses are segregated into different parts sole trader, partnership and private limited
company (Kapitonov, 2017). Following are the different aspects related to these business houses
can demonstrate in the following manner.
Sole trader
Sole trader is the one that solely operate the entire business operations.
Advantage of sole trader:
 They are easy to form
 Simple to manage.
 It allows the simple management.
 Require small resources.
 Smooth to run business operations under this.
Disadvantages of sole trader:
 Limited capital.
 Unlimited liability part of this business.
 Short life.
Partnership
Partnership is a form of business in which at least two or more than two entities conduct
business operations.
Advantage of partnership:
 Two hands over liability and business operations are better than one hand.
 Easy to established and smooth to run.
 Liabilities is also shared.

Disadvantage of partnership:
 Liabilities related to debtor is unlimited.
 Ownership always challenged under this.
Private company
Private company is registered as the private organisation in company act. This
organisation do not ask general people to invest in the business.
Advantage of private company:
 They are capable to drive biog or large business operations.
 Easy access to generate financial resources.
Disadvantage of private company:
 Compliances of legislative requirements.
Incorporation of private registered company
Private company required incorporation with support of two director at least. Digital
signature is required and also the DIN is an identification number. Name is also required to
register by the business entity. The term and condition of the organisation is that it is important
that organisation do not offer any share to offer public funding. Registration of the private
company could have been done over internet as well. The registration of the organisation can be
done within 24 hours. UK's government consultant list favour companies to offer registration of
private companies. This type of company is required to get the business register with the proper
name that should not be similar of the business incorporated by others. Digital signatures are two
that is needed in order to incorporate the private business house. The fees structure to incorporate
basic business is £100 (Caporgno and Mathys, 2018) . This will be required at the time of
incorporation of business.
CONCLUSION
Incorporation of the private company required registration. This involves different
reporting guide;lines like digital signature, registered name and many such requirements that
needed to fulfil by business entity in order to get the business registered. There are plenty of
business houses that can be incorporated by the entity such as private company, sole trader and
partnership business.

REFERENCES
Books and Journals
Caporgno, M. P. and Mathys, A., 2018. Trends in microalgae incorporation into innovative food
products with potential health benefits. Frontiers in nutrition. 5. p.58.
Kapitonov, I. A., 2017. Integration of small and middle-sized enterprises into large energy
corporations as a factor of business sustainability.