8. Setting up business
8.1. Brochure about different business structures in the UK.
Working for yourself: if you work for yourself, you are self-employed and are
described as a sole trader. You do not have to register your business in order to
set it up: you simple start trading and manage the business on your own.
However, once your business makes a certain amount of money every year, you
must register with the task authority. As a sole trader, there is no limit to the
amount of capital you can take out of the business, but on the other hand, you
have unlimited liability for your debts.
Partnerships: there are two main types of partnership in the U.K. The oldest is the
general partnership. This business vehicle does not have a separate legal identity
from the people who form it. This means that the partners are personally liable
without limit for the debts of the firm. A written partnership agreement is
recommended but not required by law. A general partnership can keep its
partnership agreement and its financial information private. Partners do not have
to provide a minimum amount of equity by law but they usual agree to pay
capital into the firm when they join the partnership. The second type of
partnership is in the U.K. is the limited liability partnership (LLP). Unlike a general
partnership, the partners are called members. They are still the owners of the
business, but their liability for the debts of the firm is limited. However, every LLP
must publish regular financial information about itself.
Limited companies: these business structures must be registered on the Register
of Companies and have a separate legal identity. This means the members are
only liable to pay for their shareholding in the company. It is the company that is
liable ti its creditors. When a company is formed, its owners will normally put
capital into it. however, this company capital does not have to consist entirely of
cash. Limited companies must also have written agreement, called the articles of
association. The two main types of limited company are the private company
(which has limited Ltd in its name) and public company or plc. A plc is often (but
not always) a company whose shares are traded publicly i.e. anyone is allowed to
buy them. For these companies there is a minimum amount of capital and there
are different requirements regarding directors and accounting procedures.
on your own in je eentje
debts schulden
personally liable persoonlijk aansprakelijk
agreement overeenkomst
owners eigenaars
separate apart
shareholding aandeelhouderschap
cash geld
publicly openbaar
Equity (billijkheid): The law says that for limited companies a certain amount of
cash or assets must be paid in when the company is formed. The law does nog
require a minimum amount of equity for partnerships. This company capital must
1
, always be available so that there are at least some assets left to satisfy creditors
(schuldeisers) if the company goes bankrupt.
Unlimited liability (onbeperkte aansprakelijkheid): this problem exists for self-
employed people and for ordinary partnerships. In these cases the business is not
a separate legal entity. This means the liability rest with the owners of the
company. If the company has debts, the owner is liable for them and is not
allowed to limit this liability, even if it means him losing the roof over his head. In
a corporation the liability of a shareholder is limited to the value of the shares her
or she holds.
Sole trader (eenmanszaak): simplest form of business, an individual person who
owns all the assets of the business and is liable for all its debts.
Memorandum of Association (oprichtingsakte): a legal document setting up a
limited company and giving the details of its aims, capital, structure and
registered office.
Articles of association (statuten): the contents of a document which regulate the
way in which a company’s affairs are managed.
Tangible assets (materiële vaste activa): there are different categories of assets
and tangible assets are physical objects e.g. machines, buildings, vehicles, raw
materials.
Intangible assets: (immateriële vaste activa): these assets are not physical object
but they have value, e.g. goodwill, know-how, patents.
Register of Companies = companies House (KBO): all corporations must be
entered here. The register contains key information about the company, e.g. the
name of the company and the address of its head office, the name of its
directors, the date of formation, the kind of business it conducts and the size if its
share capital. This information can be inspected by any member of the public and
is increasingly available on the internet.
8.2. Different points of view
to balance het evenwicht bewaren
lawmaker wetgever
to strike toeslaan
mandatory verplicht
entrepreneurs ondernemers
8.3. Listening
office kantoor
profits winsten
share aandeel
directors bestuurders
investors investeerders
guarantee garantie
2
8.1. Brochure about different business structures in the UK.
Working for yourself: if you work for yourself, you are self-employed and are
described as a sole trader. You do not have to register your business in order to
set it up: you simple start trading and manage the business on your own.
However, once your business makes a certain amount of money every year, you
must register with the task authority. As a sole trader, there is no limit to the
amount of capital you can take out of the business, but on the other hand, you
have unlimited liability for your debts.
Partnerships: there are two main types of partnership in the U.K. The oldest is the
general partnership. This business vehicle does not have a separate legal identity
from the people who form it. This means that the partners are personally liable
without limit for the debts of the firm. A written partnership agreement is
recommended but not required by law. A general partnership can keep its
partnership agreement and its financial information private. Partners do not have
to provide a minimum amount of equity by law but they usual agree to pay
capital into the firm when they join the partnership. The second type of
partnership is in the U.K. is the limited liability partnership (LLP). Unlike a general
partnership, the partners are called members. They are still the owners of the
business, but their liability for the debts of the firm is limited. However, every LLP
must publish regular financial information about itself.
Limited companies: these business structures must be registered on the Register
of Companies and have a separate legal identity. This means the members are
only liable to pay for their shareholding in the company. It is the company that is
liable ti its creditors. When a company is formed, its owners will normally put
capital into it. however, this company capital does not have to consist entirely of
cash. Limited companies must also have written agreement, called the articles of
association. The two main types of limited company are the private company
(which has limited Ltd in its name) and public company or plc. A plc is often (but
not always) a company whose shares are traded publicly i.e. anyone is allowed to
buy them. For these companies there is a minimum amount of capital and there
are different requirements regarding directors and accounting procedures.
on your own in je eentje
debts schulden
personally liable persoonlijk aansprakelijk
agreement overeenkomst
owners eigenaars
separate apart
shareholding aandeelhouderschap
cash geld
publicly openbaar
Equity (billijkheid): The law says that for limited companies a certain amount of
cash or assets must be paid in when the company is formed. The law does nog
require a minimum amount of equity for partnerships. This company capital must
1
, always be available so that there are at least some assets left to satisfy creditors
(schuldeisers) if the company goes bankrupt.
Unlimited liability (onbeperkte aansprakelijkheid): this problem exists for self-
employed people and for ordinary partnerships. In these cases the business is not
a separate legal entity. This means the liability rest with the owners of the
company. If the company has debts, the owner is liable for them and is not
allowed to limit this liability, even if it means him losing the roof over his head. In
a corporation the liability of a shareholder is limited to the value of the shares her
or she holds.
Sole trader (eenmanszaak): simplest form of business, an individual person who
owns all the assets of the business and is liable for all its debts.
Memorandum of Association (oprichtingsakte): a legal document setting up a
limited company and giving the details of its aims, capital, structure and
registered office.
Articles of association (statuten): the contents of a document which regulate the
way in which a company’s affairs are managed.
Tangible assets (materiële vaste activa): there are different categories of assets
and tangible assets are physical objects e.g. machines, buildings, vehicles, raw
materials.
Intangible assets: (immateriële vaste activa): these assets are not physical object
but they have value, e.g. goodwill, know-how, patents.
Register of Companies = companies House (KBO): all corporations must be
entered here. The register contains key information about the company, e.g. the
name of the company and the address of its head office, the name of its
directors, the date of formation, the kind of business it conducts and the size if its
share capital. This information can be inspected by any member of the public and
is increasingly available on the internet.
8.2. Different points of view
to balance het evenwicht bewaren
lawmaker wetgever
to strike toeslaan
mandatory verplicht
entrepreneurs ondernemers
8.3. Listening
office kantoor
profits winsten
share aandeel
directors bestuurders
investors investeerders
guarantee garantie
2
