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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9580
Experience:  I have been practising for 30 years.
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I have two question 1. I would like to set up a business

Resolved Question:

hi,
I have two question
1. I would like to set up a business with my mother. I have put in all the money and my mum will be running the day to day business. Ant idea how we should split the shares.
2. The second question is about the structure of the business, we will start off by launching a e commence business, then into property. How would we combine the two? For example BMI is the main business and then they have other companies under BMI with a different name/branding. How can a limited company be set up to incorporate the other companies under the main company.I hope that makes sense.
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

There are a variety of ways of doing this.

However you do it, it needs to be documented and you need to have an agreement of some sorts.

It can be done as a partnership which means that the partners have financial liability but, as you are putting different amounts of money in, you would need a partnership agreement stating exactly who does what and who puts what in and who gets what out.

In a partnership, you can do whatever you like you can have different riding styles, BMI Internet, BMI property, BMI computers, BMI motors etc.

Financially, they would all come under the same banner.

You can set it up as a limited company and you would then need direct service agreements/employment contracts which do what employment contracts normally do and the shareholders agreement stating who can sell what shares to who.

Each limited company would be able to do whatever it was able to do under the terms of its Memorandum & Articles. That could be everything that you want to do in the business or it could be narrow. Hence, you could have several limited companies all owned by you both each doing something different. You could have one limited company owned by you both and then a whole load of other limited companies underneath that owned by the one company which is subsequently owned by both of you.

Until you get bigger, easiest way is probably to set up one limited company with directors service agreements and shareholders agreements and then, when you want to branch out set up another limited company to deal with a completely different type of business.

Probably the most important thing is the agreement that you have with regard to what each of you are going to put in, what each of you are going to do, and what each of you are going to get out.

Can I clarify anything for you?

Customer: replied 1 year ago.
brilliant. Thank you so much!!
Just to clarify as the ecommence side is a bit complicated. We have the rights for a domain name I.e domain in beauty range and we have and will have brands under that name. E.g BLAZE is the domain and the brand is shine. But they all belong to BMI
How should I link it to BMI. Do I set up the limited company as BMI then another limited company as BLAZE but how can I link them ? Would I register as BMI -BLAZE.
How do big companies like Marks and Spencer do it ?
we all know there finest range belongs to Marks Spencer's how do they structure/link them together ?I appreciate your time this is excellent. thanks!
Expert:  F E Smith replied 1 year ago.

You can set up BMI as a limited company.

And then you could have different trading styles, Blaze, Extinguish, Fire, Burn and suchlike all under the limited company banner.

You could set up BMI as a partnership and still have different trading styles.

If you look at the companies house web check page you will see dozens of Marks & Spencers

http://wck2.companieshouse.gov.uk/012f3e9e0b94889e58911ec90b753b00/companysearch?disp=1&frfsh=1472372140&#result

British Gas for example has a whole load of different companies all which trade is just “British Gas”

https://www.britishgas.co.uk/legal-information.html

Please don’t forget to rate the service positive. Best wishes.

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