One of the side effects of the recession and recovery has been increases in, or high figures for, start ups. There are many types of start up but whatever their funding position they must put certain foundations in place otherwise they will face extremely serious problems or costly disputes later.
The problems are particularly likely to arise in the case of start ups by family or friends.
The basic foundations are terms and conditions of business and how to get them incorporated in your contracts with customers, a shareholders' agreement, consultant contract and employment contracts for directors and employees.
For start ups from abroad the same matters will be relevant because English law is different and far more friendly to business than in other countries. However, issues of practicality must be addressed so that, for example, a local director can be removed from office by simple voting by fellow directors or the shareholders, without breaking the employment contract. Also business immigration issues may arise.
The number of new businesses opening in October 2014 was the third highest since the recession started, with 51,460 new businesses incorporated with Companies House, according to statistics released today