Incorporating a Company

I've been to loads of yoga/wellness festivals and seen many different start ups all selling different products or experiences and while some of the ideas are great, the execution of them, especially in relation to the legal side is not so well thought out. I recently, incorporate my own company Ohana Life, it was daunting at first but with some help from my law friends we managed it.

This article will focus on the issue of incorporating your own company- the benefits/ considerations and a step by step guide of how to do it.

I've been to many yoga/wellness festivals and seen many different start ups all selling different products or experiences. While some of the ideas are great, the execution of them, especially in relation to the legal side is not so well thought out. I recently, incorporated my own company Ohana Life, it was daunting at first but with some help from my law friends we managed it.

This article will focus on the issue of incorporating your own company- the benefits/ considerations and a step by step guide of how to do it.

Should you incorporate a company?

There are many different ways that you can do business. There are 2 main types of business structures in the wellness industry.

  1. Sole Trader- this is someone who is self employed, running their own business. If you have a very small business with little risk then there's probably no need to incorporate your own company.
  2. Limited Company- this means that there is a separation between you as an individual and your business.

Benefits of starting a company

  1. Limited liability- this means your personal assets are protected if things go wrong against any creditors or claims made against you. People can only make claims against the assets that your company has rather than your own personal bank account etc. I decided to incorporate a company for my yoga and surf retreat business Ohana Life because of this.
  2. Credibility- some bigger companies or other potential customers might view a company as more legitimate. However, this really depends on what your business is. If you ever wanted to raise capital (money) as well it is easier to do this as a company.
  3. Deductible expenses- yoga retreat in Bali? you mean research and networking?
  4. It can protect your brand- once you incorporate, no one else can take your company name.

Disadvantages to incorporation

  1. More regulations- you have to be more organised, especially in terms of your accounting you have to file company accounts/tax returns but there are exceptions to this for smaller businesses such as you get to file simplified accounts. Keeping a note of money going in and out of the company account.
  2. Less privacy- if you are the Director your address has to be public etc.
  3. A little more expense- incorporating a company does have a one off fee which is minimal if you apply online (£12) and (£40) for a postal application.

How to do it

The process is actually relatively straightforward and the government website takes you through a step by step process with yes and no answers.

You just have to answer a few questions about the name of the company, what type of shares you want your company to have (usually just ordinary shares), how many directors and then details of directors.

You also need to have the standard Articles of Association to register your company online. The Articles of Association are basically just a document which will set out the duties of the members of the company and the purpose of the company.

The you pay the fee again all simple, you can even pay with paypal!

That's it in a very short and sweet nutshell!

So whether you're a yoga teacher or thinking of starting a company in the wellness industry, I hope this article has given you a few tips/been helpful! Good luck!

 https://jonespg.com/paint-colors-to-help-you-achieve-your-goals-in-2017/

https://jonespg.com/paint-colors-to-help-you-achieve-your-goals-in-2017/