Establishing a legitimate business enterprise in the UK

ESTABLISHING A RESTAURANT BUSINESS IN THE UNITED KINGDOM


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TABLE OF CONTENTS
TOPIC PAGE
INTRODUCTION......................................................3
SET UP.....................................................................3
LEGAL IMPLICATIONS..............................................4
BUSINESS PLAN........................................................7
TAXATION MATTERS...............................................9
CUSTOMER PROTECTION......................................10
CONCLUSION...........................................................12
REFERENCES............................................................13

INTRODUCTION
The catering industry is one of the fastest growing in the world. Most urban settings are full of fast food centres and restaurants because of the increasing number of people who are eating away from their homes. The UK enjoys good political stability, business friendly regulations and a very stable currency (Robert, n.d.). The establishment of the business in this country will require a lot of careful planning to comply with the various legal requirements. The business will be a fast food restaurant located in London, dealing with the provision of meals to the general public. London is a populous city with people of all ages residing there. There are more than 8 million people who reside in this city (Finner, n.d). It is therefore a good location because of the customers’ availability. The company we are starting will be a limited liability partnership. This means that the liability for its debts will be shared between the individual owners and the company. This will avoid the entire burden falling on me as a sole trader. It will also protect the owners from bankruptcy proceedings in case the venture doesn’t succeed, which can claim individual property for the case of a sole trader.
SET UP
The first step in setting up this business will be to clearly look into the legal requirements and their structure in the UK. According to Mathew (2001), there are two main types of law that is applicable here; there is the public law that deals with matters that concern citizens versus the state and there is private law that handles matters between individuals and private organizations. Most of the legislations are Acts of Parliament but there is also common law where decisions made by higher courts like the court of Appeal become binding to the lower courts. The first step will be to look for a partner with whom we shall operate the business.
There will be an agreement signed between the two of us and it will highlight the following: the particular share capital of each shareholder based on the amount of capital that each one of us will contribute. Secondly it will show the responsibilities of each shareholder in running the business. It will also show how we shall share the expenses, losses and profits that will accrue from the business. Finally it should give guidelines on the process to be followed in case the company decides to wind up. It is also important to seek the advice and input of a registered lawyer to advise us on the suitability and applicability of the agreement.
LEGAL IMPLICATIONS
There are various legal processes that shall be required to comply with in the process of undertaking this business venture:
Employment procedure
The company must use legally registered recruitment agencies to competitively source for employees who will discharge its various functions. According to Kheng (1988), Employment agencies are registered as per the Employment Agencies Act of 1973. The employment contracts should comply with the relevant laws like the National Minimum Wage Act 1998 which stipulates that the minimum wage should be 6.08 pounds. The employees will then be given a formally written agreement which will stipulate very clearly the terms and conditions of the employment contract. It must have details on the working hours, remuneration, holiday allowances, paternity or maternity leave, annual leave, dismissals and notices periods among others.
Liability Insurance
There should be a clear insurance policy that will cover the company’s areas of engagement with the different kinds of stakeholders like the general public who will form majority of the customers, the employees and other groups of customers like institutions. This is because the company will engage in providing good quality services and any omissions that will injure any of the stakeholders may result to heavy penalties. These penalties can be a very heavy burden to the victim and may cause irreparable harm. As Henry (1998) asserts, early liabilities can kill a business. There should also be covers for the machines and equipment operating being operated in the premises.
Contract terms
The terms and conditions of any contract entered into should be very clear to all the stakeholders i.e. the employer, suppliers employee. It should clearly stipulate the requisite remedies in case of breach. This will prevent the parties from seeking interventions of employment tribunals which according to Meyer (2012), last year they handled more than 200,000 claims. The company should specifically look out for implied terms of contract which are not written down.
Intellectual property
The company should have a protectionist policy over their business names, trademarks, production processes and other intangible assets of the company. Alexander (1992) further explains that as it does this it should also be on the lookout not to infringe on the same for others. What the business will consider intellectual property should be registered with the Intellectual Property Office so that they can have the legal backing when taking action on anyone infringing on their rights. Valerie (1993) says that a business must be able to jealously guard what they have invested a lot in achieving.
Health and Safety
The required standards in regard to safety in the premises, use of work equipment, manual handling of equipment and the use of protective clothing should be set in order to avoid accidents. According to Rickly (2000), regulations in a particular workplace should be written and available to all the stakeholders’ .The health of the workers should also be enhanced through regular medical checkups so that they do not endanger the customers as they can have a very negative impact on the business.
Real Estate Engagements
The process that the company engages in when seeking to lease the premises from where it will operate should be elaborate and transparent. It should enlist the services of competent real property dealers. This will be of great importance to the company even when it grows and seeks to acquire its own premises.
Environmental requirements
The company will need to contact the Environmental Agency to be informed whether the business it seeks to engage in will require registration or exemption for environmental safety. This is because environment...