Report: Legal Context for UK Business Organizations and Laws

This report provides an overview of the legal context for business organizations in the UK. It examines key sources of law, including contract law, employment law, and tax law, and their relevance to business operations. The report explores various business structures, such as sole trader, general partnership, limited liability partnership, and limited liability companies, detailing their characteristics, advantages, and disadvantages. It also offers recommendations for IOM Solutions, suggesting a partnership business structure. The report concludes by emphasizing the importance of legal compliance and proper business structure for the growth and development of businesses in the UK. The report provides a detailed analysis of the legal frameworks that govern business operations in the UK, covering key aspects such as contract law, employment law, and the roles and responsibilities of company directors. It also examines the different types of business structures available, including sole trader, general partnership, limited liability, and partnership, and provides recommendations for IOM Solutions. This report is designed to help students understand the key legal concepts and frameworks relevant to business organizations in the UK.

Report describing the key
sources of laws as the legal
context for business
organisations in the UK

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Businesses and organisations in the UK ....................................................................................4
The legal business structure of UK companies ..........................................................................6
Recommendations for IOM Solutions........................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Organisation of business van be defined as the entity which has been organised for the
reason of carrying on the enterprise which is commercial of buying and selling. Business
organisation which are mainly dependent on the law systems that exchanges the property rights,
governs the contract and incorporation as well. If the business is not organised into well
mannered way then tasks remain pending and important time has been spent on information
finding that should be available into ready form(Best and et.al., 2019). The present report will
cover discussion about the organisations in the UK and businesses and also about the structure of
UK companies in legal business which includes the general partnership, sole trader, limited
liability partnership. The report also consist of the recommendations for IOM solutions.
MAIN BODY
Organisations and Businesses in the UK
IOM Solutions is a private limited company whose nature of business is related to the
real estate agencies. It is the company which is located in Singapore and is the part of computer
system design and related services industry. At the organisational level, there are different laws
which have been followed in order to execute the results into appropriate manner. There are
different types of laws which have been followed by the business organisations which are
defined into the following manner:
 Contract law: It is the law which is related to the contract and a kind of document
which creates a sort of legal obligation between the parties which sign it.
 Employment law: It is the law which is imperative for the business and law to meet as
well(Buil and et.al., 2016). These are the laws which enforces the rules and regulations
which governs the employer and employee relationship.
 Labour law: It also indicates the relationship between employer and employee and also
pays the grades and the like.
 Securities law: The law of securities which prohibits the business persons from
conducting the fraudulent activities which takes place into the securities market.
 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(Dupont and Anderson., 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. Within the business, there are certain kinds of negligence which is a kind of failure in
order to have behaviour of standard that has been established for protecting the society against
the risk of unreasonable manner.
At the organisational level, there are certain roles and responsibilities of a director which
includes which act within the powers and also promote for the success of a company. It also
include the exercise for independent judgement and also exercise for the reasonable care,
diligence and skill as well. They are also responsible for avoiding the benefits from third parties
and conflicts of interest. They also declare the interests in arrangements or transactions as well.
The businesses in UK follows the act of partnership 1890 that provides the agreed to the unless
on the contrary and also there can be any partner who can broke the partnership at any point of
time by giving noticing to others. It is a kind of notice which takes on the immediate effect and
need not to be in writing which is known as the termination of partnership.
Within the businesses there are certain documents which have been maintained where
memorandum of association is a kind of legal document which specifies the scope of activities
of business of an organisation and information about the shareholding of the company(Evans-
Reeves and et.al., 2015). There is one more document which is known as the articles of
association that forms a document which gives instructions for the regulations of operations of
an organisation and also defines the purpose of company as well. In this manner, business
organisations in the UK works according to certain parameters and by following important
aspects as well.

The business structure into legal manner of companies of UK
Sole trader: It is a small business structure where one individual runs the business and
also owns the entire business as well. The business of sole trader can be initiated through the
initiative of an individual person. Traders of sole are only required to pay tax if profits exceeds
the tax allowance at personal level(Han., 2017). The sole traders have unlimited liability which
means that the trader at sole level is responsible for debts of business at personal level. 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 type of relationship that subsists between more than two
persons which carries out the business into common form from the point of view of profit.
common with a point of view of profit. General partnership has been formed on the basis of two
conditions which includes the organisation must have more than two owners. Within this head,
all the partners need to have responsibility at unlimited level on the personal point of view for
any debts. Within the general partnership, partners agree on this point of view that they have
unlimited liability where liabilities can be paid through the seizure of the owners assets. Within
the general partnership, there is no requirement to pay tax of income and all the profits and losses
have been passed by the individual partners. When the partnership dissolves, then general
partners make only transactions which has been designed to wind up the partnership's affairs of
business. The key advantage of partnership at general level is that they faces simplified taxes,
they are easy to establish and can easily be dissolved. There are different disadvantages of
partnership at general level that includes there is requirement of to split the profits and they are
also responsible for other partners actions and
Partnership: Partnership can be defined as the arrangement between more than two
people for overseeing the operations of business and also shares the liabilities and profits as well.
Partnership in the UK are basically governed by the partnership act 1890(Mason and Harrison.,
2015). Within the partnership, liabilities are basically the division of responsibilities with regards

to any debts or losses. If the partnership experiencing the loss of profits and partners have to
understand how the losses have been occurring and who should be responsible for it.
Within the partnership, where each partner is liable only up to the tax on their share of
the partnership profit. The partnership can be dissolved in any case through the happening of any
event which makes it unlawful for the business. There are certain advantages of partnership
which includes it is easy to start, shares the burden and also have better decision-making as
well(Pan and et.al., 2015).There are certain dis advantages of partnership which includes liability
of the partners for the debt of business is unlimited. It has been observed that each partner is
jointly and severally liable for the debts of partnership. There is also risk of friction and
disagreements and among management and partners as well and if the partner join or leave then
individual has to value all the partnership assets which are costly in terms of nature.
Limited Liability: It basically refers to the the condition through which shareholders are
responsible into legalised manner for the debts of an organisation which is only to the extent of
the nominal values of their shares. It is a type of structure into legalised form for the organisation
where loss at corporate level does not exceed the amount which is invested in limited liability or
partnership. The liability of a limited liability is the kind of extent to which the company's
shareholder or director is responsible into financial terms for their debts of company. Limited
liability companies do not pay national insurance and income tax and but they need to pay tax at
corporation level on the profits where their current rate is nineteen percent.
For dissolving the limited company in UK it is very important that to apply in terms of
organisation's struck off companies register and initiate the members liquidation at voluntary
level. For closing the limited company, it is necessary to have the company's director agreement
and shareholders which is close to the company(Singh and et.al., 2015). There are certain
advantages of limited liability which include there is no limit on the owners of business and there
is no minimum capital requirement. They also have cost of lower registration and also there is no
requirement of compulsory audit. There are certain disadvantages of limited liability where
higher cost has been incurred into the formation of limited liability and ownership within the
limited liability is very harder to transfer than with a corporation. They have also public
disclosure of public where accounts of financial level needs to be submitted to the house of
companies for the purpose of record of public.

These are the main business structure which is into the legalised form of UK companies
and these business structure helps the company to grow into positive manner with the right kind
of approach. That's why within the business world, business structures are very important in
order to achieve out of box results.
Recommendations for IOM Solutions
Within the business world, there are different structure of business of UK companies
which includes general partnership, sole trader, limited liability and partnership as well. It has
been recommended for IOM Solutions that they have to follow partnership business structure
which feels therm more relaxed and also can share the burden into equitable manner. Partnership
have certain advantages where IOM Solutions have more availability of money or capital that is
available for the business and also have larger capacity of borrowing as well. Within this type of
structure of business, there is limited regulation at external level and also need to change the
structure at legal level when circumstances changes. These are the recommendations which help
the company to grow into positive manner with the right kind of actions.
CONCLUSION
The above stated report concludes that business organisations plays a very significant role
in terms of further development and growth of an economy. It has been concluded that business
organisations follows different kinds of laws and also need to have proper monitoring of business
transaction management of an organisation. It has been determined that there are certain
liabilities and also have the responsibility of paying tax into appropriate period of time. There are
certain roles and responsibilities of a director so that organisation can be run into more positive
manner. There are certain terms related to the business organisation which include the
termination of partnership, memorandum of association and articles of association as well.
There are certain business structure of UK companies into legalised form which help the
businesses for executing their tasks into more appropriate manner. For an organisational growth
and development there are certain recommendations which can be adopted in terms of changing
their business structure.

REFERENCES
Books and Journals
Best and et.al., 2019. Business Model Innovation, Value co-creation, Special Purpose
Organisations, Competitiveness, Collaboration. Research Policy, pp.1-42.
Buil and et.al., 2016. The importance of corporate brand identity in business management: An
application to the UK banking sector. BRQ Business Research Quarterly, 19(1), pp.3-
12.
Dupont, P. L. and Anderson, B., 2018. UK report on the economic struggles of young mothers
and migrant domestic workers. ETHOS WP, 6.
Evans-Reeves and et.al., 2015. ‘It will harm business and increase illicit trade’: an evaluation of
the relevance, quality and transparency of evidence submitted by transnational tobacco
companies to the UK consultation on standardised packaging 2012. Tobacco
Control, 24(e2), pp.e168-e177.
Han, J., 2017. Social marketisation and policy influence of third sector organisations: Evidence
from the UK. VOLUNTAS: International Journal of Voluntary and Nonprofit
Organizations, 28(3), pp.1209-1225.
Mason, C. M. and Harrison, R. T., 2015. Business angel investment activity in the financial
crisis: UK evidence and policy implications. Environment and Planning C: Government
and Policy, 33(1), pp.43-60.
Pan and et.al., 2015, July. Managing value creation in knowledge intensive business services
organisations. In 2015 International Conference on Logistics, Informatics and Service
Sciences (LISS) (pp. 1-6). IEEE.
Singh and et.al., 2015. Making sense of corporate social responsibility strategies in construction
organisations in the UK.