Establishing a Legitimate Business Enterprise in the UK - Assignment Example

Establishing a legitimate business enterprise in the UK Term Paper April 7, of Introduction Planning and organizing of large events such as wedding can be a challenge to the organizers. The organizers need to involve other parties to take care of issues such as the venue arrangement, entertainment, equipment and catering services. It would therefore be advisable to hire an events organizing company that handles all the plans for the event as well as offering consultancy services. Event organizing companies offer the services of handling all the activities related to the event to ensure the event is successful. A brief description of the type of venture to set up This is a proposal for forming wedding planning company that will be based in London. This company will be aimed at organizing wedding events. The aim of this company will be to ease the burden and hustles experienced by the couples while organizing a wedding event. Through this company, couples can go ahead with their daily activities as the company organizes the ceremony for them. With this wedding planning service that the company, the couple just has to specify their preference for the wedding and the company will provide all the other services before, during and after the wedding ceremony (New York: Cengage Learning, 2004), 37. The other aim of the company will be the need to introduce decorum in this industry that has not been taken seriously (New York: Cengage Learning, 2004), 25. The company will offer an extensive range of services as required by the clients. It will therefore act as a full service planner that handles all the requirements of the wedding from the beginning to the end according to the client’s preferences on color themes, scene, timeline and budget. From the beginning through advice and consultation, the company will assist the clients prepare a timeline schedule for the event to identify the dates and time. It will then assist the client in budgeting for the wedding by advising them. The company will also assist the clients organize the actual wedding ceremony, this will involve activities such as selecting the most appropriate date and venue for the wedding, finding people to officiate the wedding ceremony, choosing the music preference and obtaining all the legal requirements for the wedding to take place. Other services will include contracting other stake holders for the wedding such as florists, caterers, photographers, stationers and car hire companies among others. In addition, the company will also offer advertising services for the wedding through bridal fairs and media advertising. After the wedding ceremony, the company will offer the services of advising clients on an ideal destination for their honey moon and clearance of the wedding venue (New York: Cengage Learning, 2004), 64. The legal set up of the venture. The wedding planning company will be formed as a private limited company considering its liability protection, flexibility as well as favorable taxation policies. The company will be registered under the United Kingdom because it will be based there. Therefore, it will operate according to the UK policy governing private limited organizations. The company will be registered to the registrar of companies in the UK for the purpose of monitoring and taxation. In Private limited companies, the owner is not personally held responsible for the liabilities and legal accountability of the company. This factor will be an advantage because in case of liabilities, the most the proprietor of the proposed company will lose is the company and its assets. The company will be established in one of the cities of choice so as to serve clients from a wide range of regions and backgrounds. Furthermore, considering the high populations in the cities, there is likely to be more clients there. It will be situated in a presentable place where that will be facilitated with sample decorations, wedding gowns and other materials. After the success of the first establishment then venture into new regions to target larger markets will be the next target. Legal implications of setting up the business as a private limited company As stated, the proposed wedding planning company will be established as a Private limited Company. According to the UK private limited companies’ act of 2002, a private limited company must be a commercial venture that operates to get profits in return. The taxes charged to this type of companies are assessed from the amount of profit they realize over that period. Unlike other types of companies the taxes charged are not affected by charity activities or investment in stock or property market. However private limited companies have an advantage because the operations of the company don’t affect the personal life of the proprietor. Therefore, in case the company has debts and liabilities, the owner or any other member of the company is not liable and only the company assets will be affected. Another advantage of private limited companies is that they are governed by a private limited companies agreement that allow residents in the United Kingdom to carry out their business activities outside the UK boundaries without being accountable to the UK taxes. This factor is however dependent on the management and control of the company because it may result to double taxation. Due to these advantages, most of the companies established are registered as private limited companies. These factors will also apply to the proposed wedding company and will therefore be an advantage. One of the UK taxation policies for private limited company taxation states that; If private limited Company based in the UK is only comprised of non-UK residents and does not carry out business in the UK, it will not be taxed in the UK, this indicates that it is not compulsory for a private limited Company based in the UK to have UK residents. Another policy of the taxation of private limited companies states that if the company complies with the structure requirements and they do not carry out business in the UK, they are not entitled to taxation in the UK. The act on taxation of private limited companies states that if the company operates for the purpose of profits, they will be taxed on the basis of income tax, corporation tax and capital gains (London: Pluto Press, 1986), 77. In case of a situation where the company operates partially in the UK and partially abroad, the law restricts double taxation. The law authorizes the private limited companies to be used as investment businesses and property holding. In case a private limited company is used for investment business its structure is not considered as a private limited company therefore the taxation policy is different. This is considered to discourage private limited companies from being used for investment business because there is no clear policy set on how to charge taxes to such business enterprise. The proposed wedding company will be operational within the United Kingdom therefore it will not be affected by the cases of double taxation. According to the UK policy governing private limited companies, these companies are obliged to prepare and present financial reports. These reports are presented in the form of balance sheets and profit and loss accounts. The balance sheets and profit and loss accounts are obtained from the conduction of annual reports. To verify that the companies conduct the yearly audit and generate the reports, the law requires them to deliver the accounts attached with the auditor’s report to the registrar of companies which is essential in determining the taxes to be charged on the company. However if the company is considered small in size, it is exempted from the requirement for auditing (Texas: Press of Case Western Reserve University, 1960), 56. The proposed wedding company will comply with all the laws concerning private limited enterprises by registering the company, conducting audits and submitting the annual reports in accordance to the laws. Private limited companies registered in the UK benefit from being under the UK policies. Such benefits include; The annual house duties charged are lower, the reputation of having registered in the UK, highly advanced enterprise and general legislation, respectable and credible jurisdiction and transparency in taxation and governing. Another advantage of these types of ventures is that all their legal documents such as formation certificates and agreements are flexible thus they can be used in other regions. The proposed wedding company will therefore benefit from these factors. Additionally, the UK offers a wide range of alternatives to assist the residence form the companies faster and easily without hardships. How the venture will be run to ensure protection of the legal rights of the consumer once it starts trading. According to the UK law, the consumers and clients of the wedding planning company proposed in this essay have their legal rights. For instance, they have the right to buy goods and services, these goods and services must have met certain standards. In cases where the goods or services have not met the required standards, the consumers are legally permitted to get a refund from the product seller or service provider. Some of the illegal practices that are considered as violation of the consumer rights include damaged and counterfeit goods, poor services, and conflicts with contractors and rogue business persons (Texas: Press of Case Western Reserve University, 1960), 89. To ensure that all the legal consumer rights are met by the proposed wedding planning company, measures will be put in place to guarantee that all the products obtained from the suppliers are original. The products such as decorations, gowns and other clothing bakery products among others must have been passed by the bureau of standards. To ensure that the consumers are protected from the exploitation of their right to proper provision services, standards will be put in place to ensure that the clients are fully contented with the services provided to them (Texas: Press of Case Western Reserve University, 1960), 106. Other than protecting the consumers from violation of their rights, customer satisfaction will create a good reputation for the company and act as a method of advertising thus attracting more clients to the company. To ensure customer satisfaction the company personnel will practice listening to the customer’s feedback, attend to the clients on an individual level and taking the appropriate actions to resolve the problems being reported by the clients. Taking time to solve the issue and complaints of the clients will be essential in reducing cases of conflicts and misunderstanding with the clients therefore protecting them violation of the right to proper service provision (New York: Cengage Learning, 2010), 102. Consumers also have the right to access goods and services, to ensure this the proposed wedding planning company will avail all the goods and services that the clients require are made available to them. Consumers are also entitled to fair prices for the goods and service they purchase. The prices charged should be proportional to their capital and should be equal to all people irrespective of their race, gender or geographic location (Florida: Rourke Publishing Group, 1992), 116. Companies are also entitled to the social responsibility in the society. They are required to play a role in improving the well being of the society (Texas: Press of Case Western Reserve University, 1960), 39. The social practices for the proposed company will involve organizing and funding charity events that will be aimed at helping the needy in the society. The company will also offer promotional services to their clients with the aim of providing cheaper products and services. The other social responsibility that the company will have is to organize events such as concerts aimed at nurturing and grooving talents in the younger generation. Conclusion The formation and registration of the company under the registrar of companies will be the first step then it will be established in the specified location. The company will run in accordance to the set operating policies as well as the taxation policies. The market for event organizing services is readily available in the UK therefore with enough advertisement the company will obtain large number of clients and run efficiently with proper management in place. Bibliography Goldman, A. and Sigismond, D., Business Law: Principles and Practice (New York: Cengage Learning, 2010). Heald, M., The social responsibilities of business, company, and community (Texas: Press of Case Western Reserve University, 1960). Shore, A. and Parry, B., Successful event management: a practical (New York: Cengage Learning, 2004). Stanesby, A., Consumer Rights Handbook (London: Pluto Press, 1986). Taylor, B., Buyer Beware: Safeguarding Consumer Rights (Florida: Rourke Publishing Group, 1992). 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