Starting a new business in the uk

Vision Business Institute- Starting a new business in the uk
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Word count: 2500
Table of contents…………………………………………………………………….page
1.0 Introduction…….………………………………………………………….…….3
1.1 Objectives…………………………………………………………………….….3
1.2 Mission………………………………………………………………….…..…..4
2.0 Management structure and ownership……………………………………...4
2.1 Company budget………………………………………………………………5
2.2 Company products…………………………………………………………….5
2.3 Technology……………………………………………………………………..5
3.0 Market analysis……………………………………………………………..….6
3.1 Analysis of UK legal system……………………………………………….…6
3.2 Analysis of UK taxation laws………………………..………….……..…..….9
3.3 Legal implications…………………………………………….……………….11
3.4 Business strategies……………………………………………..…..………...11
4.0 Financial plan……………………………………………….…………………11
5.0 conclusions……………………………………………………………...……..12
6.0 References…………………………………………………………………….14
Introduction
This paper reviews laws and regulations regarding establishment of anew company in the UK, Vision Business Institute, (VBI). It will provide E- learning business trainings and consultancy services to individuals, corporate entities, financial institutions and government agencies in the UK by exploiting technological advancement to global demands. The office will be located in East London and will consist of internet and infrastructures to be used by clients and the public.
Adequate funding has been provided for the infrastructure and technological development in the new location. Trainings and consultancy services will be offered through online via the internet and company websites, telephone conferencing and seminars. The institute’s programs are aimed to benefit companies, individuals and government agencies seeking the e-learning services in business trainings. It will provide a more flexible and efficient e- learning environment to its clients which will be accessed from anywhere by mere PC connected to the internet.
1.1 Objectives
>The institute undertakes to offer quality trainings and consultancy services to the UK citizens, corporate bodies and government agencies through e-learning programs.
> The institute undertakes to comply with all legal requirements of the United Kingdom and protect the rights of consumers.

1.2 Mission statement
Vision business institute undertakes to be the leading provider of quality e-learning business trainings and consultancy services to its clients in the UK and other parts of the world using high quality technology and comply with relevant laws and regulations.
2.0 Ownership and management structure
>Approximately 50% of the shares are owned by the institute founder,
>20% of the shares are owned by London School
>30% is owned by the public.
The company is will trade as VBI international in the London stock exchange. Public ownership helps to enhance accountability of the business. The company has plans to give some shares to its management as a way of motivating them. However 50% ownership by the founder is meant to give the founder controlling powers to influence decision making process toward achieving the original vision and mission of VBI.
The management structure
This being a technology intensive business has adopted the flat management structure in line with the findings of Milana, (2010) which creates flexibility between the business and its employees, (Stubbs, 2006).
2.1 Company budget
Significant expenditures will go to acquisition and marketing to help promote the business and make it successful. There are further plans to invest in sales and marketing in the next 12 months to help build the brand name to attain the sales and financial objectives of the institute. The huge capital expenditure is meant to help develop new technological systems for the institution and widen course products and services through internet and e-learning.
2.2 Company products
Vision business institute will offer a variety of internet based educational products for individuals and corporate firms. It will offer business trainings and consultancy services to corporations, government agencies and community organizations as well as distance learning and certification.
Institutes students can access courseware online via the pc connected to the internet. On completion of the course, the student will receive credit or certification. It will also offer training through the media and classroom training, via diskette, CD-ROM and printed formats to the public and its customers. The success will depend on the use of high technology in online and internet infrastructure and continue to innovate and diversify its products and services away from traditional form of class trainings, (Wan-Tzu et al, 2011).
2.3 Technology
Various key strategic technology partners have been identified and will be integrated to provide customers with excellent quality and efficient education, (Tonci & Pero, 2011).The institute will develop and install infrastructures such as hardware, software, content and technology which can be accessed 24/7 by the clients from anywhere with a pc and internet connection. Standard internet technologies such as Java and HTML have been incorporated into the content delivery system to facilitate smooth delivery of content to customers via the web browsers, (Orlikowski, 1992).
There is a high degree of interaction and collaboration among the peers, tutors and participants through the messaging software, chat rooms, e-mail and discussion boards. Comprehensive testing and assessment will be offered through the system by taking the form of multiple choice, multiple answer questions, tutor scored and commented exercises (Dirckinck, 2004). The institute’s strategy is to remain with flexibility to quickly adapt to the changing technologies and demands. The success of e-learning also depends on the perception as suggested by McVeigh, (2009).
3.0 Market analysis
The demand for business training has been on the rise in the global markets.The success of e-learning depends on four main factors:
Preparation for e-learning
Learning at work
Learning at home
Learner preferences, for instance conferences, print based learning materials, use of computer discs, telephone conference calls and online learning.
3.1 Analysis of UK legal system
Legal obligations and registration process
The company act 2006 of UK, the insolvency act of 1986, corporate governance code and European Union directives governs corporations formed and operating in the UK. According to this acts, company directors should abide by the powers invested upon them by the shareholders as stipulated in the memorandum and articles of associations.
Registration of Plc Company in the UK is handled by companies house. A plc company is required to have a minimum of two directors aged below seventy years or above sixteen years unless they are appointed or reappointed by the resolution of company general meeting. Director should not have been disqualified by a court of law from holding any office or declared bankrupt. The law also restricts the work of directors who are not citizens of UK which may exclude them from being directors. The law also stipulates the requirements for the appointments of company secretaries.
In terms of share capital, memorandum of association must clearly show the names of shareholders and their number of shares. The law sets minimum value of share capital allotment for a limited company at 50,000 British pounds of which 25% must be paid up before it can start business. in order to increase share capital, ordinary resolution must be passed or even extraordinary resolution if stated so in their articles of association. Companies may have different types of shares as it may wish, which are divided into five broad categories: redeemable, preference, ordinary, cumulative ...