When setting up one’s own business, there are a plethora of laws that you must get your head around before you can even consider going it alone. It is all terribly confusing and this is especially true when you have a business partner. Do not despair, this guide will give you the lowdown on Company and Partnership Law within the UK.
What is a Partner?
If you have a business partner, then you need to remember that you are both self employed and you are both entitled to a share of the profits. This is, of course, dependent on how the divide is worked. So, if you own 60% of the company and your partner owns 40%, then you will split the profits in a 60:40 share. Each partner is responsible for decision making, debts and loan and employee rights. You split the workload, and the burden, to ensure that your company remains profitable. A partnership should be flexible for both parties who run the business together. However, if your business fails you are both responsible.
What is Covered Under Company and Partnership Law?
Company and Partnership Law cover a wide range of trades, business and industries to ensure that all professionals, irrespective of their trade, are protected under this law. What is more, if you have shareholders within your company, even if they are minority shareholders, Company and Partnership Law is applicable to them.
Irrespective of the size of your business, whether it is a start-up or a SME, you will have to seek the advice of professionals, for example Bournemouth Solicitors, to ensure that you can have any disputes resolved in a timely manner.
How Can Company and Partnership Law Work For Me?
You may want to include a partner into your existing set up, this includes managing partnerships, adding shareholders and so forth. This law will assist you with all the legalities of doing so, so that everyone has a fair understanding of what they can expect from an exciting new venture. This can range from organising the terms of a new partnership, purchase of shares, share sales agreements and reductions of capital and schemes of arrangement. There is a wide range of issues that can be sought under this law that is beneficial for you and your partners.
There may come a time where you and your partner are no longer business partners. As a result, you may want to dissolve the partnership. This can only be done under Company and Partnership Law and with the help of legal eagles.
Why it is Important
It is imperative that all businesses seek to research more about this law should they want to have a successful business relationship with their working partner. So many partners get caught short by not fully understanding laws that are there to help them build highly successful businesses and partnerships. By having a deeper understanding of the laws that are there to help them, they can see positive and substantial growth within their company as all parties will be aware of their rights.