There are two ways of forming a company and we can advise you on which best suits your requirements.

The most cost effective means of forming a company is to buy a shelf company which is already in existence, having been incorporated and usually left 'on the shelf' as it has not traded. The existing directors resign and shareholders of the Company will transfer their shares. New directors and a secretary are then appointed. We can then tailor the existing company's constitution to suit your requirements.

Often it is more appropriate to form an entirely new company.

We can assist and advise you with all the books required to be kept under company law (the company registers of members, directors' interests), all Companies House formalities and documentation, the appointment of directors, shareholdings, and shareholders agreements, company finance and the company's memorandum and articles of association.

The main advantages of trading as a company are that the liability of members is limited to the extent of the value of their shares.

Directors are not normally personally liable for defaults of the company unless they have given personal guarantees or breached certain duties or statutes.

A company can also raise finance on certain assets which a partnership cannot do.

In a small family company, control can also be engineered by means of shareholders agreements between the members.

The disadvantage to operating as a company is the law procedure and other formalities which must be followed, the restrictions on certain financial activities, and the requirement to publish and file accounts. You should speak to an accountant regarding the tax effectiveness of incorporating the business.