In these times of economic uncertainty, many business owners increasingly look to the internet to find free contract documents and templates that they can use to draft their own business and legal documents. However, many business owners who do this are in grave danger of slipping up and it is always wise to consult a qualified and experienced Solicitor.
Limited Company Registration
Setting up a Limited company has several benefits for a business owner:-
- Limited liability in the event of claims
- Separate tax entity
- Shared responsibility
Many people choose to do this by themselves and in the event of a single owner it is a fairly simple process. However, where there are several owners involved in the company, a shareholders agreement is advisable.
Shareholders Agreement
Where an individual owns the company then he is answerable only to himself. However, if there are two or more owners, it is wise to negotiate a Share Ownership Agreement / Shareholders Agreement in advance. This agreement governs the relationship of the Shareholders and it sets out their financial contribution, their roles and responsibilities and end goals. Once the Shareholders Agreement is finalised the company can be incorporated and the Certificate of Incorporation is issued by the Companies Registration Office (CRO). This document is required before a bank account can be opened in the company name.
Company Director Responsibilities
Company shareholders can appoint Directors of the Company (even themselves) and “the company” can then trade and grow. Directors responsibilities are set out on the CRO website and in information booklets available from the CRO.
