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A SIC code (standard industrial classification) is what details a company's chief business activity - every company chooses from the official SIC list, the role of their company and selects the appropriate code. It is to identify companies and to categorise them using an efficient system.SIC codes are sorted into a classification system. For example, "Forestry and Fisheries' have a group, and there are forty separate SIC codes within this section, right through to the “growth of citrus fruit”!

Where did the UK SIC code originate, and what do they do it for?

This code system began in 1937, in the United States. The UK system was founded in 1948, and known as the Standard Industrial Classification. The industry classification has had to keep ahead of changes in the UK employment and industry structure. From the start of the original list, there have been alterations made in almost every decade since 1958.The main difference in the recent changes is that now the UK codes run comparatively with the UN and EU standard systems. One obvious distinction is that there are now five digits to the code, whereas in 2003, there were only four. From October, 2011 this 'new' code list from 2007 is necessary for every company to use.In an attempt to classify the kinds of activities assumed by the nation`s businesses, there are now more than a hundred SIC codes. With other agencies, the National Statistics Office collects and publishes data formulated on the type of classification: for example, revenue figures to enable comparison between the multitude of other industries and jobs. The company SIC code and others are available to all.

When do I need a SIC code?

As you initially set up a company, you do not need to show a SIC code immediately. The first annual return is when most businesses need to have the code.One SIC code is needed from 28 days of your company submitting the annual return. If you include an invalid SIC code, Companies House will decline the form and you will be asked to submit it again.At all future annual tax returns, SIC codes have to still be incorporated, even if the code remains the same. Should the company expand its operations or change business type, then it would probably come under a new category and SIC code. The company does not need to explain this to Companies House at the time of change only when the annual return is to be submitted.Most companies feel that a single category best describes their business. Although, you can select to do this type with up to four codes, so that a variety of businesses, or an especially complex one can honestly describe the company.

What is my code?

The fact is, most company owners won`t be thinking about SIC codes every day. You probably won`t have heard of one, if your company is a new one. If your annual return is complete, the information that you need should be included on it, or contact Companies House to get the full details.Finally, don`t worry or lose sleep over how you choose to categorise your company. No action will be taken against you for this – sometimes there might just not be the ideal section, so simply opt for the nearest one you think is right for you.Your Virtual Office London have been providing virtual office services to clients throughout the globe. We also specialise in company formation services and have helped formed over 15,000 companies since we started trading back in the early 1970's. We have produced a range of services which are aimed at start ups and new businesses. Our services include mail forwarding address services, registered office service, directors address service, accounting and fast track banking.

Put simply like this, it is a modest enquiry. However, there are numerous mutual forms of ownership of shares in a new company, there`s no easy answer to the number of shares to be allocated.Given the amount of diverse issues to think about, you may reflect on the specific recommendations of the auditor or other expert consultant if you are unsure of the best way to proceed.When the company forms, one share at least must be distributed. This share is often allocated to someone, such as a sole director (also a shareholder). However, shares may be issued on behalf of the corporate body; you will always locate a company that owns shares in the business, for example. It is also likely that a solitary share can be allocated towards shareholders' equity - where two people or more hold shares equally.There are a lot of precise rules that relate to a PLC. They should have fifty thousand pounds in value of the issued investment. To highlight this, if the nominal value of the shares of a PLC is one pound, the business will be issuing fifty thousand shares for it to start to trade or borrow money. If the nominal value of one penny per share, then five million shares must be supplied so that a nominal fee of fifty thousand pounds to be allocated.For a lot of companies, there is no maximum amount of shares that they distribute. The Articles of Association state a maximum share capital that serves as the upper limit of shares that are allowed to be issued. If a certain number of shares would cause the company`s share capital to rise, then this limit can either be increased or taken away. Thereafter, the allotment can take place.Larger companies may need extra capital to invest in businesses that are willing to give more than small firms, although both shareholders and managers often create loans to companies that are of a similar level of investment.If you enjoyed this blog you can find out more in our insightful news section where we provide helpful posts on relevant business topics. Your Virtual Office London are leaders in virtual office and company formation services.

With over 2,700,000 companies incorporated in the UK, starting your own limited company is a great idea for one or more of the following reasons.

1. It is easy and quick to get going

It is very easy to start a company, and a lot of it can be done on the internet. There is no longer the hassle of waiting a long time for a company to send over and process a raft of documents: Now you can begin to form a company in a matter of hours.

2. A separate identity

A limited company has its own legal identity. As a result, the company can endure the passing of the owner, and it is conceivable that both the directors and shareholders can change over time. The existence of the company can only to be stopped by orders of the court.

3. Owners' Liabilities are Restricted

The shareholders of a company have limited liability for the amount of company debt. The extent of their responsibility is the amount paid for their shares, plus if they have outstanding shares of nil or those that are partly paid.

4. Authority and dignity

The founding of a private company points to that business being durable and that they are committed to the effective management and of being responsible.

5. The possibility of tax benefits.

Where partnerships will usually have to pay income tax, sole traders have to pay corporation tax, which is actually lower than that of income tax.As well as the payment of salaries to employees, companies can pay dividends to its shareholders. The director is a shareholder, so frequently choose to take the tax on the most effective combination of salary and dividends.The director retains the right to receive certain benefits without any government employee or employer national insurance contributions being payable. The repayments will be received as dividends which are likely to suffer less than in taxes than national insurance contributions. However, dividends will be subject to tax within the company.A range of tax allowances and expenses can be offset against the profits of the company, so you should use a tax professional or financial advice in light of your particular circumstances, and this area is no exception.Your Virtual Office London are leaders in company formation, mail forwarding address service and registered office address services. We also provide other important services for Limited Companies such as banking and accounting. What ever your need please do get in contact with the team today, we are always happy to discuss your requirements and then provide suitable advice.

Factoring is to delegate the management of customer invoices to an external company (a factoring company, also called a factor) and to get an advance on its debts if the company would grant payment terms to its customers.The mechanism of factoring is very convenient, but it is not free! How much is factoring? What type of society uses these services? Here we analyse the typical profile of a client company.

Factoring in detail

The mechanism of factoring includes several additional benefits, and several distinct costs!First, the factor manages all or part of the business' client account. The service involves monitoring and charging regulations, customers and raises the risk of default. "The commission factoring" encompasses all of these benefits, including the unpaid guaranteed.FeesThe factoring fee to pay back the factor varies. Generally, the price to pay for peace of mind is based on the gross sales of the business, but also the volume of invoices to be processed or the reputation of debtors of the company.The factoring fee is indeed a commission rather than a fixed charge. This will be deducted directly from revenues collected by the company.Then, in the case of delayed payment, the factor provides an advance on debt, which can be up to 90% of the bill of the company. The latter then pays the factor, via a sort of "interest borrowing ", called "the funding fee”.Lastly, most factoring companies add various fees, such as fees or additional voluntary benefits (audit, consulting etc.)Factoring: summary of the costsSo with this cascade of costs, how much are the returns factoring? Some companies offer a factoring fee ranging from 0.5 to 2% of sales to manage.Others have a more ambiguous billing that includes a factoring fee and other charges (various commissions, overhead ...) of the total cost for all services, ranging from 7-15% of the amount plus VAT. It is advisable to make detailed specifications to control costs. In short, each factoring company uses a different method to calculate its price.

The benefits of factoring

Given the price tag, the benefits of factoring are many. The possibility to offload customer reminders and get cash advances are the primary benefits. If you look closer, factoring is a solution to outsource an entire department and the management of the account.

Factoring or discounting?

Discounting is a process that allows the company to sell its debt to its bank, which allows them a cash advance, with interest. The procedure involves the signing of a bill of exchange, subject to acceptance of the bank. Factoring is simpler, in terms of procedure and additional documents.

Factoring: Who is affected?

To benefit from economies of scale, we have to see its sales increase.Factoring is typically for high-growth companies that do not have the time to organise their customer service and are thrown in at the deep end. The same goes for companies with multiple activities, wishing to delegate some, especially when they are deployed overseas.Companies that perform substantial payment delays will have an incentive to seek a factoring company to better manage their cash flow and to discharge reminders. Traditionally, payment delays affect enterprises B to B (business to business) or activities for professionals (not individuals).Factoring is biased towards "large and medium-sized companies". To diversify their customer base and attract "small" companies, some factoring companies offer a flat-rate system, rated to the volume of invoices to process.For plenty of information and other accounting news, check out Your Virtual Office London today.

Both memorandum of association and related products are required for an established company in the United Kingdom under the Companies Act, 2006. The Memorandum of Association is a document establishing the company and the terms of association setting out how the company is run, managed and owned. Therefore, the terms of the association will include the responsibilities and powers of the directors and the means by which members promote the control of the board of directors.

Memorandum of Association

The Memorandum confirms that subscribers want a company under the Companies Act and agree to become members of the company. In the case where a company is to have a capital stake, they are committed to getting at least one share each.The Memorandum of Association must have a prescribed form and must be authenticated by each subscriber. The MOU, which include a compliance statement, must be sent to the company along with the company's application and the product of the company's new association.

Articles of association

The articles of association set out how the company is run, managed and owned. Articles may place restrictions on the powers of the company - which may be useful if the shareholders want to be assured that the manager would not pursue a certain course of action, at least not with the approved by shareholders. By default, however, the Companies Act 2006 a company has unlimited power.In addition to the articles, which is a public document, shareholders may participate in a shareholders agreement to additional articles related to the operation, management and ownership of the company that they want to keep out of the public domain.

Articles of association – what needs to be included?

There is no prescribed form for the post although there are certain rules that need to be included in it. To support this, model articles for three of the most common types of company (private company limited by shares, private companies limited by guarantee and public companies) are defined in the company regulations 2008 and have been amended. The most up to date version is available on the companies House website. In addition, for the company's charities Charity Commission, a set of model articles can be used and firms adjust interest community has a version for companies interested in community contract.

The article should include the following:

• Responsibilities of the members;
• Directors' powers and duties;
• Directors meetings, voting, and other delegates;
• Keep records of the directors;
• Appoint and dismiss directors;
• Issuing shares;
• The different class sections;
• Shares;
• Share transfers;
• Dividends and other distributions to its members;
• The decision of the members of Congress and participants;
• Media and communications;
• Compensation insurance for directors.

Articles may be amended by a special resolution of the members. If a company changes its article other than to the pattern post a copy of the article must be submitted to the Company within 15 days of the change to consider. A copy of the resolution on the amendment must be submitted within 15 days after adoption. You do not need to tell the company why you are changing the terms of the association.Director and company secretary (if indicated) of a company should have a good working knowledge of the constitutional documents of the company, especially in terms of the association.As business manager of the company, they need to be comfortable that they are acting within the scope of the powers conferred by the article and following the processes and procedures or other reasonably well laid out there. It`s for the board to review the articles on a regular basis. As the company and its circumstances change, some existing provisions may no longer be useful or new regulations may be desirable. By reviewing and, where appropriate, update the articles of association the company can achieve the most appropriate balance between the needs of the directors and shareholders, the rights and powers of the former company executives while protecting the interests of its members.If you are looking to form a new company Your Virtual Office London can help. We have formed many thousands of companies and are experts in our field. Please call us today and we will be happy to discuss your individual requirements. We also provide other services for new Limited companies such as registered office address, mail forwarding service and directors service address.

Are you one of those that wake up every day wondering what to do to create a business with little capital investment? Despite what many may think, starting a business with low investment is more than possible; in fact it has become a reality. The dream of every entrepreneur is to create a profitable business from scratch with minimal investment, and this article shows that it is possible, but it is important first to know some basic secrets.Many successful businesses with little investment have managed to grow with little capital investment and achieved success. It is vital to bear in mind that to successfully launch a business, it is essential to have good advice at all times to avoid loss of time and money. No one can start a business completely blind, so it is essential to be fully informed in order to create the business of your dreams with a very low investment.

Successful businesses with little investment - Steps to follow:

Find the perfect idea, that is profitable and with a low investment. This is the challenge facing anyone interested in starting a business. To run a good business that generates some steady income and requires low investment is the dream of every entrepreneur.It should be emphasised that the priority in successful businesses with little investment is that there is more than satisfying economic needs and to have a steady economic growth. Before starting any type of profitable business or success, it is important to consider some aspects that should not be overlooked. But, what are the fundamental secrets you must know?Secret 1: Create a business plan: creating a business plan where you display and transmit to clients what market you're going into. Also, an estimated time of return on investment, what would be the investment, quality of products, staff, value proposition, as well as any other information about your business idea that may become a necessary step.Secret 2: Small Business: When starting a business, it is important to start with a small business or you'll never know how it will work. So avoid starting big and focus on what is necessary to get you started work. Do not forget to promote your business through discounts or offers of interest, as well as planning an effective advertising strategy.Secret 3: Self confidence is important to have a winning mentality, since an entrepreneur that is pessimistic, will not get the success they dreamed of when creating their business. The creation of any company involves vision, work, effort and enthusiasm, so if all these ingredients do not meet, your business is doomed to failure. It is important not to give up and not think about leaving early, and to remember that raising any business takes work and time.Taking these three points in will mean you can enjoy creating a successful business with a low investment. With these tips you can enhance and boost your business idea. Creating a successful business with little investment is certainly possible, but to be successful you have to do things right from the start, as well as maintaining the right kind of mindset. For business services an accountancy solutions, be sure to check out Your Virtual Office London today.

Make yourself different from the competition

The goal of marketing is to create difference in the eyes of your prospects. In today's world of business, in each market segment and any line of business, there are multiple vendors (i.e, several companies offering the same thing). The real goal of marketing therefore, is to make a difference in our favour. Marketing must not only project our image and let us know about the prospects that interest us, but clearly communicate why prospects would place us in the forefront of their mind. Also, it`s key to understand how we are different from the competition.Competitive advantage is the real difference, but must be sustainable. We must provide a real value to our customers, but do this realistically and within budget. Though we identify points of added value that differentiate us from the competition, we must be careful in two respects: Are they elements of differentiation relevant to my customers? Which elements of differentiation are sustainable in the long term?Once we identify and / or develop a true competitive advantage, it becomes the backbone of our scheme of persuasive communication: our marketing will refer to it, our sales arguments and the way we sell will mention it; our customer service systems will focus towards nurturing that advantage. Moreover, we can guarantee it in writing, and that trust of our prospects will allow us to get more sales.If we do not yet have a competitive advantage for real, it's time to ask yourself some necessary questions. Another differentiating factor is therefore security writing. A written guarantee for any returns or defective products will give greater confidence to our prospects and customers, as they will have evidence that we stand behind the product or service you sell. If we offer a written guarantee, written on clear and objective terms, determining the scope and restrictions (it's a good idea to review this with an accountant), it becomes a good tool to attract prospects and convert customers.Another key to successful marketing is to identify the appropriate target market for our product or service. Even if all persons or companies could buy what you offer, you need to focus your marketing to be successful toward that target group that is in need of the goods or service that you sell. Who can afford it? Who can give you the volume and profitability?If you properly identify the market, then you should focus on developing the competitive advantages that the market appreciates. Look into the values and then communicate them effectively, knowing the ways to sell successfully, without having to be the cheapest.For example, consider a laundry and dry cleaning business operating in an area with a high incidence of young households with working parents on adequate incomes. If you can offer ample parking, along with a fast delivery service treatment and care, you can have a successful business. Furthermore, your customers will value the features of your service and your attention, looking beyond the price, and you will have created a competitive advantage. Which actions can you make in your business and in your life, to get ahead of the rest?Are you starting a new business, Your Virtual Office London has helped many business become successful with help from our professional services. We provide virtual office, business support, company formation and banking solutions for all our clients. If you would like more advice please do get in touch with our team, we are always happy to help.

In this article we will solve some common scenarios with share certificates, which often cause confusion.

Which share certificates are required to be issued after the transfer of shares?

Firstly, it is a basic requirement that the transfer form (form J30) be completed by the current and, if necessary, the new owner, and then certified by HM Revenue and Customs. The document fee must be paid to HMRC buyer of the shares.Upon completion, the company will receive a stamped transfer form and the original share certificate. Then you must check that the details of the holding company are the same as those in the register of members of the company. If all goes well there, registered members can be updated to reflect the transfer of shares.It is good practice to eradicate or write "Cancelled" to clear the old certificate with the date. If the transfer is only part of the owner`s shareholding, then they will need a new certificate representing the decreased holding.The new certificate with a unique number must be given to the person receiving the shares within two months of delivery. If the shares are divided between two or more different new media (e.g., half are sold to one person and the rest to another), each of them will seek confirmation of their participation. But, as mentioned earlier, there is no reason to send multiple certificates for common interest.If the company does not issue shares within the above notice, the new shareholder of the company has not fulfilled its obligation by law to do so.

Replacement share certificates?

If a share certificate is destroyed, lost, stolen or damaged, the shareholder's have the right to seek and obtain a replacement certificate of shares in respect of the shares covered by this certificate.The process to be followed depends on whether the person is still certified. If the certificate is still owned by members, then it must be returned to the Company. The old certificate will be cancelled and the new one issued as described above.If you do not have a certificate, it is common for a company to inquire about the circumstances of their loss. It is common practice to issue the certificate, only if the shareholder has a complete form of indemnity.If it is found subsequently, then the old certificate must be returned to the company. This condition will be included in the form of compensation to shareholders.

The question of Indemnity

This confirms that the shareholder is the beneficial owner of the shares covered by the certificate and disclaims any responsibility to the public which may arise in connection with this. By signing the application fees, the shareholder, even if it is dependent on the original certificate to ask the company to replace another, and the company suffers financial loss, will cover the losses. If the amounts are large, the fee should be signed by a bank or insurance company.

What happens if you change the name or address of shareholders?

If you vow to change their name, they are often looking for new share certificates. Prior to the issuance of a replacement, companies must seek evidence of any name change. This usually takes the form of a marriage certificate or deed poll equivalent. When you have evidence, and the release of a replacement share certificate with details of the changes is given, it is also important to update the member`s register with new details.It is not usually necessary to replace share certificates if the registered shareholders change their address. However, the membership register can again be updated with the new address.Your Virtual Office London can help your business become a Limited Company, if you need help or advice our team can provide the expertise your business needs. We are based in London and are happy to arrange a face to face meeting where we can discuss your specific needs and requirements.

If you are a small business owner and operator, especially if you are what some people call a solopreneur (where you are the sole owner and sole employee of the company), then you are bound to have a lot on your plate every day. Time is always of importance; there are not enough days in the week for everything you have planned. To spend even a lunch or a few hours in the evening with friends and family becomes increasingly difficult and the idea of having the time to sort out the taxes of the company is something like a pipe dream (or even nightmare for many of us!) Technology is something that can be given to small business accounting as a fresh concept.However, the sheer volume of numbers and percentages is not in the interests of your professional life, even with the support of computer software and smartphone applications that can be used. All you can find yourself surrounded by is often unclear instructions and the sense of being overwhelmed by all the efforts it takes.

Going Solo

For some people, small business accounting, can take a long time to adjust to. It may take technology or expert advice from friends or family, or previous experience in this field in general, but some entrepreneurs have managed to make it work more than others. Is this is a good thing? This is a difficult question, as the time these small business owners spend on record keeping, accounting and tax filing can very well be used for the expansion of business networks and personal growth.

Hire an accountant

Whether your business is ready or not, you might consider hiring a professional small business accountant. It frees up more time for the important and urgent issues – after all, you are an owner who has to work! But at the same time, hiring a full time in-house accountant can also be a serious drain on your budget. Are you ready? Do you really need someone to be there forever, even when there is little or no work for them to do?

Workforce

Perhaps the logical answer for effective growth and stability comes from outsourcing your small business accounting. Now, this used to be too difficult to design and was an arena filled with doubt and stigma. However, it is the way that more and more business owners choose nowadays when considering the needs of its accounting.An accountant using outside resources will not be used for the time when there is little or no accountability to speak of- at the same time, they will be priceless when the tax issue permits, or needs modifications or other complex structures. Knowing that your accounting matters are in the hands of an expert, you can finally focus on doing what you love, which is to work towards greater prosperity and the growth of your company. Your small business accounting and fact-based decisions will help you achieve your goals faster.Your Virtual Office London help many small businesses get up and running, from virtual office &mail forwarding address, too accounting and banking services and introductions. What ever the need we can help your business, get in touch with us today to see what we can do for you and your company.

Paying tax is mandatory for everyone, whether you are an employer or an employee of any company or establishment. This is not only because it is a law, but it is also your duty. In fact, you are helping yourself and the citizens of the nation by paying taxes on time. The total sum that is received by the government in terms of a tax amount is to be used for the welfare of the country. Everything that is done in favour of the public revenue is matched with the tax amount. So in order to make your life and the life of the citizen more comfortable means you have to pay tax to the Government in time. But if you're facing tax issues?Contacting or consulting accountants is always great for better assistance on paying taxes. These consultants help on tax issues related to you and always provide the best solution. They have efficient knowledge of your field and look for the best way of taxation for their customers. In addressing these professionals, you will get to know the exact amount that must be paid by you and become clean of all types of information. This will also help to make your business stronger and free of legal problems for a long time.In addition to the best knowledge and assistance, these services are chosen to keep the cash flow easier and investing in them for maximum benefits. Such services are provided by professionals who have years of experience in their field and sufficient knowledge of the exchange rate policies. They will also inform you about the benefits and tax amount without confusing you unnecessarily.Therefore, it is recommended that you always look for the best company to get assistance for different types of problems related to taxes and issues. These consultants will also help you manage your foreign currencies and in keeping your investments safe and secure. But, before approaching these companies, you should check out the previous work done by the company, and the company's reputation in the market. These things will help you to approach the best companies to get the best solutions.Your Virtual Office London are leaders in virtual office and company formation services. We have helped many small business and start ups become successful through the use of our services.