58. The main disadvantage
revolves around the compliance with the legal
aspects of the Companies Act that the directors
of the company must adhere to. This includes
the filing of accounts in strict timescales.
59. Note that for new businesses
banks will often ask for director’s personal
guarantees against loans and overdrafts, thereby
making you as director personally liable for
those debts in the case of liquidation. The
limited liability would not then apply.
Compliance Requirements
60. There are certain requirements
under law that you need to do depending upon
the type of business you are starting. Make
sure you do know what you have to do.
Sole Trader/Partnerships:-
Register as self-employed with the Inland Revenue
and Contributions Agency.
Check that if you are not using your own name
that the name is not going to give problems
because someone else uses it. After all you
do not want someone else benefiting from your
hard work in getting established. The places
to check to be sure are:
Local telephone directory
Trade Associations
And if you are going to be in other areas or
trade nationally then
the Business Names Register
This would be the usual
checks, however to be certain you should also
check with Companies House and the Trademark
registry.<<
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