Ltd Company Q's
Discussion
I currently am a director of a Ltd Company.
XXX XXX XXXX Ltd T/A XXX XXX XXX don't want to break the advertising rules
I set up a second business last year XXX XXX XXX ( the first part of both business's names is the same but the second part is different (hugely different).
Confused?
Okay as an example;
If I am director of ABC building Services Ltd T/A ABC Building Services
I then set up a second business nothing to do with the first
ABC Car Sales I now am in the process of setting up a third business which is nothing to do with the first two and again want to use the ABC name - for the main reason that by using the ABC name I can use the same telephone numbers for all 3 businesses by simply answering the phone as "Good Morning ABC"
What I want to know is can ABC Building Services Ltd in effect be the parent company of all 3 businesses neither of which offer any services/do any work similar to the others. Or have I got to set up additional Ltd companies
>>> Edited by marcos maniac on Tuesday 1st March 19:16
2 Smokin Barrels said:
You can structure it as you want. Ensure the memorandum & articles allow for all the trades (they usually have a "catch all".
Don't forget, to enjoy limited liability all documents need to have the correct legal entity name, including the word Ltd, registered office & company registration number.
2 Smokin Barrels said:
Don't forget, to enjoy limited liability all documents need to have the correct legal entity name, including the word Ltd, registered office & company registration number.
No problem with that!
All are run from the same address and it would assit me to be able to show that the 2nd & 3rd companies are actually owned by a XXXXX Company.
marcos maniac said:
Don't forget, to enjoy limited liability all documents need to have the correct legal entity name, including the word Ltd, registered office & company registration number.
No problem with that!
All are run from the same address and it would assit me to be able to show that the 2nd & 3rd companies are actually owned by a XXXXX Company.
..or trading divisions of the same company? There is a difference.
marcos maniac said:
..or trading divisions of the same company? There is a difference.
So would each business/trading division each have its own set of accounts?
What about VAT? would I need 3 seperate VAT numbers?
If it is one company it is exactly that. One VAT no, one registered number etc. You submit one set of accounts to companies house etc. For your own info, however, you can obviously keep separate management accounts.
There are all the usual pros/cons of sole trader/one company with trade divisions/one parent with limited subsidiaries
2 Smokin Barrels said:
If it is one company it is exactly that. One VAT no, one registered number etc. You submit one set of accounts to companies house etc. For your own info, however, you can obviously keep separate management accounts.
There are all the usual pros/cons of sole trader/one company with trade divisions/one parent with limited subsidiaries
This I like the sound of - simplicity (I hope)- I assume that would I require 3 seperate bank accounts (would probably make keeping track of each business/divisions finances one heck of a lot easier)
The company I work for has a wierd structure.
They are The ABC Group, made up of 5 or 6 different companies.
On any letters we get, at the bottom it says
The ABC Group, a Divsion of X Y ABC LTD.
I always thought that X Y ABC LTD would have to be part of The ABC Group, but it would appear not
They are The ABC Group, made up of 5 or 6 different companies.
On any letters we get, at the bottom it says
The ABC Group, a Divsion of X Y ABC LTD.
I always thought that X Y ABC LTD would have to be part of The ABC Group, but it would appear not
There are lots of ramifications of the various ways multiple trades can be run through a company or group of companies.
If you have three separate limited companies all carrying out seprarate trades, it would be OK to leave them operating as three separate companies, with no formal links between them apart from sharing common directors. If the separate companies buy and sell from each other, the quantity/value of the trade between the companies should be declared in the notes of the respective sets of accounts.
If the companies trade separately, they would probably be best having separate VAT registrations.
Alternatively, all three trades could be run through the one company - providing the company's Memoranmdum and Articles allow the various trades to be carried out. However, you would probably have to prepare three separate profit and loss accounts covering the different trades. If one of the trades shows a loss, you may find that there are restrictions in the way that loss can be utilised to reduce overall Corporation Tax liabilities.
Finally, a group could be set up i.e one company becoming a holding company and owning the shares in the other companies. Once a group is set up, you still have to prepare separate accounts for each company, including a set for the holding company. Larger groups also have to prepare a set of accounts combining all the group activities - called Consolidated Accounts. With a group, one VAT registration number can cover all the companies and there may be better flexibility in the use of trading losses through the avenue of group relief.
These are quite technical and complex areas and should not be entered into without guidance from a good Corporate Tax specialist.
>> Edited by Eric Mc on Tuesday 1st March 23:07
If you have three separate limited companies all carrying out seprarate trades, it would be OK to leave them operating as three separate companies, with no formal links between them apart from sharing common directors. If the separate companies buy and sell from each other, the quantity/value of the trade between the companies should be declared in the notes of the respective sets of accounts.
If the companies trade separately, they would probably be best having separate VAT registrations.
Alternatively, all three trades could be run through the one company - providing the company's Memoranmdum and Articles allow the various trades to be carried out. However, you would probably have to prepare three separate profit and loss accounts covering the different trades. If one of the trades shows a loss, you may find that there are restrictions in the way that loss can be utilised to reduce overall Corporation Tax liabilities.
Finally, a group could be set up i.e one company becoming a holding company and owning the shares in the other companies. Once a group is set up, you still have to prepare separate accounts for each company, including a set for the holding company. Larger groups also have to prepare a set of accounts combining all the group activities - called Consolidated Accounts. With a group, one VAT registration number can cover all the companies and there may be better flexibility in the use of trading losses through the avenue of group relief.
These are quite technical and complex areas and should not be entered into without guidance from a good Corporate Tax specialist.
>> Edited by Eric Mc on Tuesday 1st March 23:07
Gassing Station | Business | Top of Page | What's New | My Stuff