Commercial & Business Law
What it is: Business formation is the process of establishing a legal structure for a new venture in England and Wales, whether as a sole trader, partnership, limited liability partnership, or private limited company. The chosen structure affects liability, tax, governance, and reporting obligations. When it applies: This service is relevant when starting a new business, restructuring an existing one, or bringing in investors or new partners. Incorporating a company involves registration at Companies House and putting in place governing documents such as articles of association and, for companies with more than one owner, a shareholders' agreement. How a solicitor helps: A commercial solicitor advises on the most suitable structure for your goals, prepares and files the necessary documents, and drafts tailored articles of association, shareholders' or partnership agreements, and directors' service agreements. They help you understand directors' duties and ongoing compliance obligations, reducing the risk of disputes later. First steps: Clarify your ownership split, funding plans, and how key decisions will be made, then seek advice on structure before you register. Having a shareholders' or partnership agreement in place from the outset can prevent costly conflict. The Companies Act 2006 applies across the UK, with Scotland having some distinct partnership and property rules.
