Setting up your company is like setting up a football team

Many elements of setting up a company are like those used in sport!

Who’s in control?

Each football team has a head coach. The head coach has overall responsibility for picking the team and dictating the tactics. Ultimately, they’re responsible for the way the team plays, and possibly its success or failure.

In a company there’s usually a person or people with significant control (PSCs). This is someone who has a controlling influence over the company. For example, anyone with voting rights or more than 25% of the shares.

A home ground

Each team will have a home ground. As a supporter, if you’re going to see a game, you know where to go. A company must have a registered office address which, like your Six Nations home ground, must be in the same country your company is registered, although it does not have to be where you live or train.

Rules and regulations

When starting a company there are laws you must follow. These are the memorandum and articles of association which you must include when you register your company. 

Replacements and new appointments

During the match each rugby team can use up to 7 replacements. This could be for tactical reasons, to take the place of injured players, or just to offer a fresh pair of legs.

In a company you can change the directors at any time. But these must be recorded in the company records and updated on the public register within 14 days of the change.

Being successful

Lastly, the aims. The aim of any rugby team and any company is to be successful, and not necessarily in financial terms. 

Some companies will be not for profit or to benefit the community. And some sports teams are there just for fun.