Electronic Company Formation Solutions Sam Lloyd Managing Director

1. Electronic Company Formation SolutionsSam LloydManaging Director

2. Paper Based Company Incorporation • Live signatures required for all officers • Personal attendance required to swear Declaration • Swearing fee • Incorporations taking 5 – 7 working days for standard service • Cost • £20 standard • £50 same day • Payment required on application • Documents must be delivered to Companies House • Certificate of Incorporation either collected from Companies House or posted

3. Electronic Company Incorporation • No live signatures required • No sworn Declaration required • No swearing fee • Incorporated within 24 hours on standard service • Cost • £15 standard (£5 less than paper based incorporation) • £30 same day (£20 less than paper based incorporation) • No payment required on application • Companies House credit account • No delivery of paper documents to Companies House • Certificate of Incorporation sent by e-mail

4. Other considerations • Traditionally ‘nominee’ officers are generally used for incorporation purposes • Electronic filing makes it easy to appoint the ‘true’ officers from the outset resulting in • no requirement to appointment new officers • no requirement to resign ‘nominee’ officers • no requirement to prepare stock transfer forms (or pay duty) • Companies can be incorporated and completed on the same day

5. The success of Electronic Company Registration • 85% of all incorporations are now filed electronically since inception in 2001 • Less than 30% of all other documents are filed electronically since 1998

6. Impact of the Company Law Reform Bill • What are the considerations? • It will not be feasible to use ‘nominee’ corporate officers for the purposes of incorporation • Natural persons could be used as ‘nominee’ officers providing service addresses are used • Placing natural persons as officers of new companies will mean (until their removal) that they will remain liable for any mismanagement by the client (inadvertent though this may be)

7. Major consideration for organisations filing paper based company incorporations ! • Government e-filing targets are actively driving organisations down the electronic filing route • Targets • 40% by March 2007 • 55% by 2008 • 75% by 2009

8. Company Formation Software Solutions • A selection of software providers • ICSA (Blueprint) • Datacare (Secretariat) • 7side (7side Company Suite) • Link with Secretarial Software – Jordans (PC Sec)

9. Issues surrounding the use of electronic incorporation software • E-mail based software can prove to be problematic • Staff or fee earner training • Incorporating company names that contain sensitive words • Criteria justifying sensitive word • Third Party letter • Incorporating different company types • Limited by Guarantee • Section 30 Registrations (drop the word “limited”) • Public Limited Companies • Non standard Memorandum and Articles of Association • Adoption of new Memorandum and Articles • Adding or changing clauses in the Articles of Association • Multiple share classes

10. Is there an alternative? • 7side Bolt-on bespoke company formation service • Using 7side as your bolt-on company formation department will overcome all the issues surrounding the use of electronic formation software • Improve the perception of your business in your clients eyes and adding value • Fully integrated Bolt-on service designed for you • Pull on 26 years of expertise • No software purchase necessary • Pay as you go service enables you to recover total cost from your client • No complex IT involvement • £5 million indemnity for added assurance

11. Bolt-on company formation service • The Basic Solution Package • Electronic incorporation of any type of company that Companies House will accept • Use you own memorandum and articles (or 7side’s) with the ability to adapt for each individual formation • You can be shown as the presenter • You can incorporate using the ‘true’ officers or with ‘nominee officers • You receive the Certificate of Incorporation and one copy of the memorandum and articles as filed at Companies House via email • There is no difference in formation costs between private companies, limited by guarantee or plc

12. Bespoke Bolt-on company formation service • The Bespoke Solution Package • All the elements of the Bolt-on Service plus • As many sets of the memorandum and articles as required • Memorandum and Articles, Statutory Registers and any other documents can bear your branding • Loose leaf, hard bound or box style Statutory Registers • Bespoke minutes and other documentation • Additional elements such as writing up of statutory registers can be included • Training for fee earners (where appropriate) can be arranged

13. How does it work? • Deploy the service to a single point or across your business through a bespoke website with easy to use screens and advice, designed for you free of charge • If you want a more traditional method of contact you can use paper, email, telephone or fax

26. 7side Limited - Background • 26 years experience in providing company formation services • Pioneers in creating electronic company registration software • Our software is widely used by electronic presenters • Current providers of wide range of company formation solutions • Specialist providers of bespoke formation solutions to: • Large Law Practices • Large Accountancy Practices

27. Electronic Company Formation SolutionsContact: Kathryn Hopkins029 2045 1444www.7side.co.uk