Floating Your Company

5. Preparation

5.1 You must ensure that your annual accounts and reports conform to UK generally accepted accounting principles, as accepted by the Stock Exchange.

Since 1 January 2005 they now have to conform to new International Accounting Standards (IAS).

• Young businesses that are floating will need to have a business plan.
• An accountant's report on the company's trading record is normally included in the prospectus.
• Before making an application to PLUS, you should get a copy of their rules and ensure you meet their admissions criteria. If you have no trading record, check with the applications department before going ahead.

5.2 Your company's legal structure needs to be in order. (See Forming a business.)

• If you are a sole trader, or in a partnership, you will need to form a company.

5.3 You must make key information available.

• Who the directors are and what service contracts they have with the company.
• Who the major shareholders are and what new or existing shares are for sale.
• Details of the company's key contracts.
• The memorandum and articles of association. Check there are no unusual restrictions.

5.4 You must appoint a CREST-compliant registrar to register the new shares.

5.5 Check the other requirements of the market you choose.