How to Set Up

There are two ways of setting up a business in the UK: as a partnership or as a company. If you want to set up a partnership, it is wise to consult a solicitor (lawyer), along with the other people that you are going into business with. There must be at least two people to start a partnership. If you are running a business with others without a partnership agreement, this will not prevent you from being construed as a partnership if you are acting as one would; and your business will be governed by the terms found in the Partnership Act. This is why it is best to consult a solicitor beforehand.

The other option is to set up (or take over) a company. Most companies in the UK are registered either as a listed Public Limited Company (plc) or as an unlisted Private Limited Company (Ltd.). The principal difference between the two is that a Public Limited Company invites the public to subscribe to shares or bonds, which are listed on the London Stock Exchange. UK law requires you to indicate the legal form of your company by adding the relevant suffix to your company name. In a Private Limited Company, shares are not offered to the general public. See the Companies section for further information. [Hyperlinked to “Companies” section.]