Vision Business Starting a new business in the uk.docx

Vision Business Institute- Starting a new business in the uk
Create a business plan for E-learning institute………………….. Table of
contents…………………………………………………………………….page1.0
Introduction…….………………………………………………………….…….31.1
Objectives…………………………………………………………………….….31.2
Mission………………………………………………………………….…..…..42.0 Management structure and
ownership………………………………………42.1 Company
budget………………………………………………………………52.2 Company
products…………………………………………………………….52.3
Technology……………………………………………………………………..53.0 Market
analysis……………………………………………………………..….63.1 Analysis of UK legal
system……………………………………………….…63.2 Analysis of UK taxation
laws………………………..………….……..…..….93.3 Legal
implications…………………………………………….……………….113.4 Business
strategies……………………………………………..…..…………114.0 Financial
plan……………………………………………….…………………115.0
conclusions……………………………………………………………………..126.0
References…………………………………………………………………….14 IntroductionThis paper reviews laws
and regulations regarding establishment of anew company in the UK, Vision Business
Institute, (VBI). It will provide E- learning business trainings and consultancy services to
individuals, corporate entities, financial institutions and government agencies in the UK by
exploiting technological advancement to global demands. The office will be located in East
London and will consist of internet and infrastructures to be used by clients and the
public.Adequate funding has been provided for the infrastructure and technological
development in the new location. Trainings and consultancy services will be offered
through online via the internet and company websites, telephone conferencing and
seminars. The institute’ s programs are aimed to benefit companies, individuals and
government agencies seeking the e-learning services in business trainings. It will provide a
more flexible and efficient e- learning environment to its clients which will be accessed from
anywhere by mere PC connected to the internet. 1.1 Objectives>The institute undertakes to
offer quality trainings and consultancy services to the UK citizens, corporate bodies and
government agencies through e-learning programs.> The institute undertakes to comply

with all legal requirements of the United Kingdom and protect the rights of consumers. 1.2
Mission statementVision business institute undertakes to be the leading provider of quality
e-learning business trainings and consultancy services to its clients in the UK and other
parts of the world using high quality technology and comply with relevant laws and
regulations.2.0 Ownership and management structure >Approximately 50% of the shares
are owned by the institute founder,>20% of the shares are owned by London School>30% is
owned by the public.The company is will trade as VBI international in the London stock
exchange. Public ownership helps to enhance accountability of the business. The company
has plans to give some shares to its management as a way of motivating them. However
50% ownership by the founder is meant to give the founder controlling powers to influence
decision making process toward achieving the original vision and mission of VBI. The
management structure This being a technology intensive business has adopted the flat
management structure in line with the findings of Milana, (2010) which creates flexibility
between the business and its employees, (Stubbs, 2006). 2.1 Company
budget Significant expenditures will go to acquisition and marketing to help promote
the business and make it successful. There are further plans to invest in sales and marketing
in the next 12 months to help build the brand name to attain the sales and financial
objectives of the institute. The huge capital expenditure is meant to help develop new
technological systems for the institution and widen course products and services through
internet and e-learning. 2.2 Company productsVision business institute will offer a variety
of internet based educational products for individuals and corporate firms. It will offer
business trainings and consultancy services to corporations, government agencies and
community organizations as well as distance learning and certification.Institutes students
can access courseware online via the pc connected to the internet. On completion of the
course, the student will receive credit or certification. It will also offer training through the
media and classroom training, via diskette, CD-ROM and printed formats to the public and
its customers. The success will depend on the use of high technology in online and internet
infrastructure and continue to innovate and diversify its products and services away from
traditional form of class trainings, (Wan-Tzu et al, 2011).2.3 TechnologyVarious key
strategic technology partners have been identified and will be integrated to provide
customers with excellent quality and efficient education, (Tonci & Pero, 2011).The institute
will develop and install infrastructures such as hardware, software, content and technology
which can be accessed 24/7 by the clients from anywhere with a pc and internet
connection. Standard internet technologies such as Java and HTML have been incorporated
into the content delivery system to facilitate smooth delivery of content to customers via
the web browsers, (Orlikowski, 1992).There is a high degree of interaction and
collaboration among the peers, tutors and participants through the messaging software,
chat rooms, e-mail and discussion boards. Comprehensive testing and assessment will be
offered through the system by taking the form of multiple choice, multiple answer
questions, tutor scored and commented exercises (Dirckinck, 2004). The institute’ s
strategy is to remain with flexibility to quickly adapt to the changing technologies and
demands. The success of e-learning also depends on the perception as suggested by
McVeigh, (2009).3.0 Market analysisThe demand for business training has been on the rise

in the global markets.The success of e-learning depends on four main
factors:a) Preparation for e-learningb) Learning at workc) Learning at
homed) Learner preferences, for instance conferences, print based learning materials, use
of computer discs, telephone conference calls and online learning.3.1 Analysis of UK legal
systemLegal obligations and registration processThe company act 2006 of UK, the
insolvency act of 1986, corporate governance code and European Union directives governs
corporations formed and operating in the UK. According to this acts, company directors
should abide by the powers invested upon them by the shareholders as stipulated in the
memorandum and articles of associations.Registration of Plc Company in the UK is handled
by companies house. A plc company is required to have a minimum of two directors aged
below seventy years or above sixteen years unless they are appointed or reappointed by the
resolution of company general meeting. Director should not have been disqualified by a
court of law from holding any office or declared bankrupt. The law also restricts the work of
directors who are not citizens of UK which may exclude them from being directors. The law
also stipulates the requirements for the appointments of company secretaries.In terms of
share capital, memorandum of association must clearly show the names of shareholders
and their number of shares. The law sets minimum value of share capital allotment for a
limited company at 50,000 British pounds of which 25% must be paid up before it can start
business. in order to increase share capital, ordinary resolution must be passed or even
extraordinary resolution if stated so in their articles of association. Companies may have
different types of shares as it may wish, which are divided into five broad categories:
redeemable, preference, ordinary, cumulative preference and bearer shares.The formation
may be done electronically through company formation agents. Necessary documents
(memorandum of association, articles of association, form 1, and form 12) together with
registration are sent to the registrar of companies. Annual returns should be delivered to
companies house after every twelve months. The law provides for the conversion of private
limited company to plc for companies with share capital by passing a special resolution.
Likewise, the UK laws allows for conversion of plc to private limited company.Consumer
protection in the UKThe UK consumer laws aims to promote healthy competition and bans
anti competitive agreements between firms, which may fix prices and unfairly influence the
market.vbi company will engage in lawful agreements to avoid breaking theses laws and
become a victim of anti-competitive practices. Heavy penalties are imposed to companies
that infringe consumer laws, in form of fines, being disqualified from being a director and
even jail terms.In matters of advertising, the law requires that it should be clear and must
use language that can be easily understood. Consumer protection from unfair trading
regulations prohibits the use of false and misleading information to consumers. This will be
adhered to by Vbi Company in all its advertisements. The BPRS act of 2008 sets out
conditions for comparative advertising. a comparative advertising is one which explicitly or
implicitly identifies a competitor or good and services provided by the competitor. They are
allowed provided they do not mislead and meet conditions set out within the regulations,
(OFT, n.d).The laws protect consumers from unfair commercial practices. They give
consumers confidence to shop in the UK. Our business will endeavor to treat consumers
fairly by complying with stipulated laws and regulations in the CPRs. CPRs are all about how

you act in relation to consumers. VBI will act with professional diligence and in accordance
acceptable trading practice. All forms of prohibitive, misleading and aggressive practices
such as withholding material information from consumers which may influence their
decision making process will be avoided at al costs, (CPRs, n.d).Business contracts with
consumers will avoid the use of unfair terms to reduce complains. Online business laws in
the UK requires that you give information in advance about the business, products,
cancelling terms, prices and delivery arrangements. Seven day cooling – off period is
required for which cancellation may be made. Finally, our business will sign the code of
practice approved by OFT to enhance reputation in the UK market. This is a pledge to treat
consumers fairly whenever they encounter problems, (OFT, n.d). 3.2 Analysis of UK
business taxation lawsThe provides that a new company must inform HM revenue &
customs if the business is liable for corporate tax, pay any corporate tax that is due and file
company tax return in time. Limited companies and some organizations are liable to
corporate tax in the UK. VBI Company will strive to pay the correct amount of corporate tax.
However, some business activities are exempted from this tax, they include profits
generated from charities and related activities, agricultural exhibitions and health
insurance. Businesses liable to this tax are subject to tax deadlines and requirements and
file tax returns, (HM revenue & customs, n.d).Central government is the only body
mandated in the UK to levy corporate tax and companies with taxable profits of 15 million
and above paying at highest tax rate in quarterly installments starting in the seventh month
of their financial year. However, small and medium sized companies pay their corporate tax
in one installment nine months after their accounting year. Any income gained in the UK is
subject to taxation irrespective of the citizenship and the place of residence or registration
of the company. UK has historically been known as country with relatively low tax rates by
European standards. According to ‘ Corporate taxes’ (2010), VBI institute’ s profit will be
subjected to corporate tax in accordance with the UKs taxation policy.There are also
taxation on capital gains which applies to the companies and individuals. This applies to
disposal of capital asset. In any given tax year, the firm will be required to aggregate all
chargeable gains and losses and net gain is included in the company’ s taxable income.
However gains from disposal of substantial shareholdings are not treated as chargeable
gains subject to some conditions. Stamp duty is charged on the transfer of shares and
securities as well as real properties. 3.3 Legal implicationsThe setting of VBI institute and its
success will depend on its compliance with business laws and regulations. Registration of
plc in the UK is much easier compared to many European nations which is the reason for
choosing uk as the location of our business. The use of formation agents and electronic
formation has reduced time wasting and bureaucracy associated with company
registration.Consumer protection laws and their enforcement will provide a competitive
environment for the operation of our business in the UK. The business will comply will all
laws and regulations which promotes fair competition and level playing field. In order to
build reputation of the company, we intend to sign code of practice to assure as a
commitment to offer fair services to our clients. Provision of accurate and relevant
information to our customers will be done to enable them make informed choice of our
products in the market.Regarding taxation laws in the UK, VBI will abide by all taxation laws

to promote its public image and enhance sound working relationships with government
agencies and other stakeholders. Complying with legal requirements will help achieve the
success of our business.3.4 Business strategiesThe objective is to be the leading provider of
e-learning and e-training of business courses and management to corporations, government
agencies and academicians. The strategic elements to be used by the VBI are:Streamline
delivery: the institute will partner with other business firms and training institutions in the
UK to help streamline content delivery and integrate technological platform with the clients.
The company will outsource other services to cut down costs during initial years of
business operation in the UK markets.Boost and adapt courses menu: The institute will
regularly update its curriculum to enhance quality of its products and services and this will
be aided by research and development.Develop customer loyalty: this will be achieved by
using direct marketing and personal selling. The workers will visit selected clients in their
locations which will help build strong relationships. Aggressive marketing will help build
brand name, the institute will innovate products aligned with customers’ needs.4.0
Financial planThe institute, although is venturing in new business, it is basically an internet
and e-learning venture which depends on financial forecast of internet and e-learning
world. Additional capital will be required for the business venture to work successfully. The
financial forecast predicts that the institute will turn profit within the first year of
operations as shown the financial pro-forma summery below.5.0 conclusionsThe success of
our business will depend on how well we shall implement business strategies stipulated in
the plan. The legal requirements in the UK are favorable for the operation of e-learning
business and the company is prepared to comply with all the legal requirements. Taxation
laws are favorable compared to many other European countries and this is one of the
reasons for choosing this new location. Advanced technological development in the UK will
enable the VBI business to flourish and budgetary allocation is provided accordingly. The
success of our business will benefit people and businesses seeking online trainings and
consultancy in UK and other parts of the world.6.0 REFERENCESCPRs (n.d): consumer
protection rights. Retrieved on 20.05.2012 from www.oft.gov.uk‘ Corporate taxes’ 2010,
Country Commerce. United Kingdom, pp. 42-55, Business Source. Complete, EBSCOhost,
viewed 11 April 2012.Dirckinck-Holmfield, L, Sorensen, E. K, Ryberg, T. & Buus, L. (2004). A
theoretical framework for designing online master communities of practice. In S. Banks, P.
Goodyear, V. Hodgson.Economic intelligence unit www.eiu.com (accessed on 11th April
2012)HM revenue & customs, (n.d): Who is liable for Corporation Tax. Retrieved on
20.05.2012 from http://www.hmrc.gov.uk McVeigh II. 2009. “ Factors influencing the
utilization e-learning in post registration nursing students. Nurse education today, 29, 1, 91-
99 Milana, C 2010, ‘ Widening the scope of entrepreneurial finance with flexible
organization, e-working, and e-learning’ , Strategic Change, 19, 5/6, pp. 275-279, Business
Source Complete, EBSCOhost, viewed 12 April 2012. OFT (n.d): A quick guide to competition
and consumer protection laws that affect your business. retrieved on 20.05.2012 from
http://www.oft.gov.uk Onyeka K. Osuji. 2011. ‘ Business-to-Consumer Harassment, Unfair
Commercial Practices Directive and the UK—
A Distorted Picture of Uniform Harmonization
Retreived: 14 February 2011 Springer ScienceBusiness Media, LLC. 2011Orlikowski, W. J.
(1992). The duality of technology: rethinking the concept of technology in Organizations.

Organization Science, 3, 398– 427.Stubbs, M.,Martin, I. & Endlar, L. (2006). The structuration
of blended learning: putting holistic design principles into practice. British Journal of
Educational Technology, 37, 163– 175.Tonci Mikac, and Pero Lucin. 2011 ‘ Establishing an
Institutional Framework for an E-learning Implementation’ – Experiences from the
University of Rijeka, CroatiaJournal of Information Technology Education: Innovations in
Practice. Volume 10, 2011Wan-Tzu, W, & Neng-Tang Norman, H 2011, ‘ The Effects of E-
Learning System Service Quality and Users’ Acceptance on Organizational Learning’ ,
International Journal Of Business & Information, 6, 2, pp. 205-225, Business Source
Complete, EBSCOhost, viewed 12 April 2012. Place your order now………………….

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