The Office of National Statistics (ONS) has recently reported, perhaps unsurprisingly, that the number of new business incorporations were lower in the Quarter 2 period of April - June 2020 than they were in the same period last year. However, the ONS also reported that difference was slight, and commented that the decline was “not that pronounced”. Happily, this shows that there has still been significant new business activity during the pandemic.
The Lawyer Monthly magazine warns, however, that as a result of such activity in our unprecedented times, some of those new businesses being set up in haste, without proper advice being taken from professional advisers such as solicitors and accountants.
It is vital when setting up a business to consider not just the here and now, but the future. For example, entering into a Shareholder’s Agreement at an early stage when setting up a new business makes sense for you, and for your business. These documents govern the relationship between the parties involved, and set out clear boundaries for an array of possible future scenarios, such as a breakdown in the business relationship, or a sale of the company.
It is beneficial for your accountant and your solicitor to work together at the company incorporation stage, to bring your business vision to life on paper. In fact, greater co-operation between your two advisers is advantageous not just at company inception, but throughout the life of your business.
If you’d like more information on Shareholders Agreements, or any other aspects of the life of your business, we can help in the Corporate Team at mfg Solicitors LLP.