Business in Practice 1.0

docx

School

Cambridge *

*We aren’t endorsed by this school

Course

1079

Subject

Business

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by khuranaparas23

1 Business in Practice Student Name Student ID Professor Name Course Name December 10, 2022

2 Introduction Formerly known as GlaxoSmithKline plc, GSK plc is now a British multinational pharmaceutical and biotechnology business headquartered in London. In 2000, Glaxo Wellcome and SmithKline Beecham merged to become the current company. China Resources, Sinopharm, Johnson & Johnson, Pfizer, Roche, AbbVie, Novartis, Bayer, and Merck are all larger pharmaceutical businesses than GSK is (#294) on the 2022 Fortune Global 500. The FTSE 100 Index includes the corporation, which is also listed on the London Stock Exchange as its principal listing. It was the seventh biggest company by market valuation on the London Stock Exchange, with £70 billion as of August 2022. As a secondary listing, it may be found on the New York Stock Exchange. The first malaria vaccine, RTS, S, was produced by the business and announced for sale at a 5% premium above cost in 2014. Amoxicillin, mercaptopurine, pyrimethamine, and zidovudine are only few of GSK's legacy medications that made the WHO's List of Essential Medicines. This study was inspired by the business practises of a UK-based company. This paper will introduce the reader to the various local options for forming a business entity, their benefits and drawbacks, and the various taxation issues that arise for both individuals and corporations, and it will also provide an overview of the procedure for creating new forms of business incorporation. Different Business Vehicles Formation of a Partnership The partnership business structure is an evolution of the sole proprietorship. They result when two or more persons work together under one corporate name. The participants in a partnership have the same status as a lone proprietor. Their company income is assessed by

3 themselves. Partners are obligated to pay 9 percent in Class 2 and Class 4 NIC on earnings between $7,225 and $42,475, and 2 percent on earnings beyond that amount. The partnership agreement sets the rules for the relationship, and they should get legal counsel before drafting one. Partners, like sole owners, are personally responsible for any business obligations. Incorporation of a Limited Company A corporation formed by the issuance of shares is a distinct entity under the law. It may enter into contracts in its own name and must comply with directors' orders, although their claims might reduce its legal responsibility. A limited liability corporation (LLC) may be owned by a single person or a number of people, and the many shareholders of such an entity can each own a unique licence and set of rights. A business owner may incorporate a limited company by signing a Memorandum of Association and completing an IN01 form without seeking legal counsel. This structure allows for a more advantageous tax deduction than the single proprietorship. It is worth noting that small businesses may deduct 20% of their corporation tax payments if their annual earnings is less than £300,000. Profits are distributed to shareholders via dividends or salaries. Both the company and the employee must pay national insurance contributions (NICs) on salaries, and taxes are deducted at the recipient's marginal rate. In the absence of any other income, the director is permitted to take a remuneration of up to £7,225 free of taxation. Because NICS is no longer required, no payment is being made, and the business is eligible for tax relief. There is a 10% presumed tax credit attached to dividends, which is subtracted from taxable income once corporation tax has been withheld. Unless the beneficiary is in a higher tax bracket, he will not have any further tax responsibility. Limited liability corporations (LLCs) have a favourable tax system and structural flexibility. The ever-

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 present need of conformity is a significant drawback. Companies are required to submit statutory accounts and a return each year at Companies House, together with confirmation from the company's directors and shareholders. Incorporation of an LLP This hybrid entity combines the tax efficiency of a partnership with the liability protection of a limited company. An LLP, like a limited company, has its own legal personality and may sign contracts in its own name. The maximum number of participants is undefined, however there must be at least two people present. Members' liability is limited to the amount they invested, and they may divide any gains among themselves anyway they see suitable. Unlike limited liability firms, the profits of partnerships are taxable to each partner individually. Incorporating a limited liability partnership (LLP) requires filing form LL IN01 with the registrar of companies. Before forming a limited liability partnership (LLP), businesses should get legal guidance. Every limited liability partnership (LLP) needs a written agreement outlining the rules for running the business and dividing up earnings, with few exceptions. Both LLP and limited liability partnerships are required by Companies House to submit annual reports. New Venture Formation There are many things to think about before jumping into a collaboration with a theyng software company that has the potential to explode in popularity. They should start by refining the product or service offering and learning more about potential markets for the technology. Know the competition's technological infrastructure so they may undercut their prices while still providing excellent service. First, they need to figure out what technologies people may use, and then they need to think of novel solutions to existing issues. Seventy-seven percent of the UK

5 population is online, making this a potentially large market for the digital company concept. Check in with theself and see whether they can devote enough time to starting and maintaining a company. It might take some time to start up and expand a software company, so it's important to think about whether or not they need staff. Creating a thorough strategy for the first five years of the tech startup is an important part of planning the firm. Learn how many people need to buy the technology, the prices, and the projected expansion rate of the tech startup. Consider include information about the intended clientele and sales channel in the strategy. Considering the ever-changing nature of market values, they should be flexible in the approach and look for opportunities to grow the technology company. Do the homework on the market, learning everything they can about the competition and the end users for the technology. They may gauge potential interest in the proposal by conducting interviews with the target demographic. Customers who could be interested in purchasing the technology should be visited in order to get this information. They'll be able to address an unmet need in the industry and learn what features the IT company's rivals are missing out on. Pick a legal structure, and then register the technology company. Role of Companies House If they're thinking of starting a tech firm, especially as a partnership, the location of the company's headquarters is crucial. This is the repository for data pertaining to all limited businesses and limited liability associations in the United Kingdom. There are a number of documents related to running a tech company that must be submitted to Companies House. These include annual returns detailing the company's owners and the location of its registration, as well as notifications of any changes in the addresses of the company's directors or the company itself.

6 A limited partnership must be registered with a company registry in England or Wales. The incorporation date, company name, company type, and registered office location are all necessary to register a technology startup. There is a service provided by Companies House called "Follow" that enables people to sign up for free email notifications about limited company filings. Using the internet and the Companies House mobile app, they may get whatever data they want. Using Companies House WebFiling, they may submit the company's paperwork and details electronically. Delivery of paperwork, confirmation statements, notifications of change to business data, and registration fees may all be sent safely using the service, which is accessible to any limited company in the United Kingdom. Business Planning Process and Nature of the Business Structure In order to launch a successful technology firm, they must be familiar with the steps involved in creating a business plan and the resources available to they. New enterprises need careful preparation through business plans. Business planning lessens the chance of venture disbandment and quickens product creation and venture organisation by assisting company founders in making judgments, balancing resources, supply, and demand, and turning abstract aims into tangible operational procedures. There are two audiences for whom business plans are created: the company and its outside stakeholders. When building a software company, an internal business plan is essential for putting everything together, whereas an external business plan is used mostly to get funding. The IT company's expansion efforts should be guided by the strategic plan they've drawn up. The method will be applied to internal stakeholders, resulting in a crystallised definition of the company's vision and established corporate strategy. With the help of a business plan, the

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7 Company may introduce itself to the people who could end up investing in it. Writers of business plans need to succeed to get trust. What the startup team need and what the investors can provide must be compatible. Sources of Business Finance Knowing where to get money is as important as knowing where to get petrol for the technology company. Of course they don't want to be stranded without petrol, but this isn't a tour of gas stations. To go from the concept stage to the point where the technology may be sold, a certain amount of funding is needed. They should think about employing bootstrap funding, which involves making do with as little as possible in order to get things started. Grants and startup prizes are forms of funding that often do not need to be returned and may be made available from a variety of sources. The use of debt to finance operations, When a business borrows money, they must also pay interest on the borrowed funds. They may utilise the money to invest in the company and repay the loans according to the agreed-upon conditions. Equity financing is issuing shares of stock to investors in exchange for a financial contribution. Especially for startups, loans from loved ones might be a lifesaver. Through angel investing, they may approach affluent, accomplished businesspeople in retirement for capital for the technology startup. Marketing and Sales Strategy Labor and Human Resources Issue Knowledge Workers Impact of Emerging Technologies on Future Trading

8 Legal, Regulatory and Compliance Issues

Business in Practice 1.0

Related Documents