Prometheus Report: Business Structures, Incorporation, and UK Law

This report, prepared for the Prometheus board of directors, explores various business structures including sole proprietorships, limited companies, partnerships, limited liability partnerships, public and private limited companies, and charities. It details the process of incorporating a company in the UK, highlighting the legal requirements and distinctions between incorporated and unincorporated entities. The report concludes by recommending a private limited company structure due to its balance of limited liability and reduced compliance requirements compared to public companies. It emphasizes the trustworthiness and perpetual existence of the company form, making it a suitable choice for the business. Desklib provides access to this and similar solved assignments for students.

Running Head: REPORT FOR BOARD OF DIRECTORS ADVISING ABOUT AREAS OF LAW
Table of Contents
Introduction................................................................................................................................3
Various Types of Business Structures........................................................................................3
Procedure of incorporating company.........................................................................................4
Incorporated and unincorporated company................................................................................4
Each type of company listed above............................................................................................4
Conclusion and recommendations.............................................................................................5
References..................................................................................................................................6

Introduction
There are various forms of business strictures which a person may chose to carry out
the business activity. However thee structures have to be chosen based on the business
requirements and the type of resources available with the person. The purpose of this report is
to identify the different types of business structures which can be used by a business. The
report also ensures highlight the Procedure of incorporating company. The report then goes to
explain the types of companies which are classified by law. The report finally provides
recommendations of the type of business structure which is best suited for the business
Various Types of Business Structures
Sole trader – this is a kind of business structure which is carried out by only one
person and does not have provisions for features like limited liability, perceptual existence of
separate legal entity. This structure is simple and easy to form.
Limited Company – this is a structure which is incorporated as an artificial legal person by
law. A company may be limited by shares or by guarantee. More information will be
discussed below
Partnerships – the business structure requires at least two or more people. The features of this
business structure also do not have provisions for features like limited liability, perceptual
existence of separate legal entity. This structure is simple and easy to form but makes the
partners jointly and severally liable (Talbot 2015).
Limited Liability Partnership – this is a form of partnership where partners can have their
liability limited to the amount which has been invested by them. There has to be a general
partner in this business with unlimited liability.

Public Limited Company - this is a kind of company which can raise funds from the public
but has to undergo compliance with various legal requirements. It has features like limited
liability, perceptual existence of separate legal entity.
Private limited companies - this is a kind of company which cannot raise funds from the
public but has to undergo less compliance with legal requirements as compared to public
companies . It has features like limited liability, perceptual existence of separate legal entity.
Charities – this is a form of company which is created for the purpose of charity only. Its
intention is not to make profit
Procedure of incorporating company
The process of creating a company varies from country to country and the type of
company which needs to be created. In UK the company can be registered by making in
application in the house for nominal fees. It comes to existence as soon as it has been
provided with a certificate of registration.
The most commonly used way to set up a company in UK is by creating a private
limited company. For this one must appoint people to run the company that is to appoint
people in the post of directors. The next step is to register such company by incorporating it
with the Companies House. One, who is the director of the company, is also its employee. It
means that the personal income and business income must be distinguished and kept
separated. The director must not use the business income for personal benefits and vice versa.
In order to set up a limited company, one have to select a name and address for the company,
then get it registered with the Companies House with those name and address. The newly
created company must have at least one director, one shareholder and set up the company for
Corporation Tax. The company must have the articles of association which will be having
rules, agreed upon by the members of the company, for running the company.

This is ridiculous, you just send me same file with no rework done, despite me paying
extra money for the rework, i have sent you the file highlighted where you should have
done the rework.
Write down the procedure for setting up a company IN UK
only(https://www.mygov.scot/start-business-uk/register-your-business-in-the-uk/)
Incorporated and unincorporated company
An incorporated company is a corporation such as a private company or a public
company. On the other hand unincorporated companies include business structures like sole
proprietorship, partnerships or joint ventures. The features of incorporated business include
limited liability, perceptual existence of separate legal entity.Howeveran unincorporated
business does not have these features. The formation of a incorporated business has several
legal requirements but n case of unincorporated business the requirements are fairly low and
simple
Each type of company listed above
Public Limited Company is a kind of company which can raise funds from the public
but has to undergo compliance with various legal requirements. It has features like limited
liability, perceptual existence of separate legal entity. Private limited companies is a kind of
company which cannot raise funds from the public but has to undergo less compliance with
legal requirements as compared to public companies . It has features like limited liability,
perceptual existence of separate legal entity. Charities are a form of company which is
created for the purpose of charity only. Its intention is not to make profit (Talbot 2015).
Conclusion and recommendations
It can be concludes that Private Limited Company is the best structure. This is
because although the company cannot raise funds from the public like a public company it

has to undergo less compliance with legal requirements as compared to public companies. In
addition a company form of business is more trustworthy for the public. The business has
limited liability which only makes owners liable to the investment made by them. In addition
it can only come to an end by the court and not when a member leaves. LLPs are not suitable
because there has to be a general partner.

References
Hannigan, B., 2018. Company law. Oxford University Press, USA.
Talbot, L., 2015. Critical company law. Routledge.