Startups are fantastic, exciting, disruptive places to work. However, by their very nature they’re often run by young and inexperienced people, especially within the legal area, which admittedly can be a minefield. They also deal with often complicated ideas where legal issues can be difficult, so if you’re in this situation here are some things to look out for.
In general – the best type of company to establish is a Private Limited Company. There are some basic requirements for this type of company, like needing at least one director. You also need to report to companies house details of shareholders, annual returns and such.
The problem with a LTD is the directors duties. These are owed to the company, not the shareholders. The main being: ‘to act in the best interest of the company’, ‘to act with care’ and ‘not to be under a conflict of interest’. …