UK Business Formation Law

1. Companies Act 2006:
   • The Companies Act 2006 is the primary legislation that regulates corporations formed in the UK. It covers various aspects of company formation, management, and governance
   • The Act provides guidelines on company structure, formation procedures, and constitutional matters.
2. Types of Companies:
   • Under UK law, there are different types of companies:
     • Private Limited Company (Ltd): A common choice for small businesses. It limits liability and restricts share transferability.
     • Limited Liability Partnership (LLP): Suitable for professional services firms. Members have limited liability.
     • Public Limited Company (PLC): Allows public trading of shares on stock exchanges.
   • Each type has specific legal requirements and implications.
3. Company Formation Process:
   • Method of Forming a Company: The process involves submitting necessary documents to the Companies House.
   • Memorandum of Association: This document outlines the company’s purpose and initial details.
   • Registration Documents: These include information about subscribers, capital, officers, and significant control.
   • Certificate of Incorporation: Issued upon successful registration.
   • Effect of Registration: The company becomes a legal entity upon registration.
4. Company Constitution:
   • The constitution defines how a company operates. It includes:
     • Articles of Association: Governing rules for internal management.
     • Model Articles: Prescribed default rules.
     • Alteration of Articles: Procedures for changing rules.
     • Resolutions and Agreements: Impacting the company’s constitution.
5. Supplementary Provisions:
   • Statement of Company’s Objects: Describes the company’s purpose.
   • Providing Constitutional Documents to Members: Ensures transparency.
   • Effect of Company’s Constitution: Determines rights and obligations.
   • Notice to Registrar: Required for constitution changes.
   • Right to Participate in Profits: Void if not a member

In summary, UK business formation law establishes the legal framework for organizing and operating companies, ensuring transparency, accountability, and compliance with regulations.