Setting up a limited company question.

[bluenitsuj]

I am looking to set up a limited company for a business that I am setting up. One question though.

I will possibly branch into several things eventually so is it possible to set up an overall company in the name of - for example: Bluenitsuj sales ltd. ( not the real name just hypothetical ) and then have several different names under the main company name?

ie Bluenitsuj Sales Ltd - under that:
BN Import/Export
Nitsuj Collectables

Sorry if confusing but any good advice will be very welcome.

 

[beorhthelm]

as i understand it, you can use trading names for the Ltd company as much as you like, as long as its not deceptive. just make it noted somewhere that Nitsuj Collectable is a trading name of Bluenitsuj Sales. if you want to make the branches additional Ltd companies, you can do that too with the parent being one of the directors of the company. however this gives you more admin and may attract tax man, as it can be used to fiddle/shuffle money around.

 

[bluenitsuj]

as i understand it, you can use trading names for the Ltd company as much as you like, as long as its not deceptive. just make it noted somewhere that Nitsuj Collectable is a trading name of Bluenitsuj Sales. if you want to make the branches additional Ltd companies, you can do that too with the parent being one of the directors of the company. however this gives you more admin and may attract tax man, as it can be used to fiddle/shuffle money around.

Thankyou for the reply. I would set up so that the off shoot trading names would be under Bluenitsuj Sales, not seperate Ltd companies.

 

[warmleyseagull]

yes you can. two options:

1. set up company 1 as a holding company then establish a series of subsidiary companies beneath with the trading names you wish;

2. set up company then have a series of trading names along lines of "ABC Ltd t/a DEF".

The advantage of option 2 is that it is much easier and cheaper (avoids filing fees, stat accounts, corporation tax returns, VAT registration, possible PAYE reg etc) , slight disadvantage is that if you end up with several disparate sources of income, it is easier to account for them as separate stat entities (unless your book-keeping skills are very good).

 

[kc1]

I suggest you speak to an accountant.
Mine are amazing and are based in Brighton, their online software is well worth the fee alone. PM me if you want and I will give you their details.

 

[cliveh27]

As I understand it, and I am not an expert, you have three options, as people above have outlined.
a) set up a company and a number of subsidiary (separate) companies. although each of these companies will be limited in its own right, I think the high-level company will be liable for the debts of the subsidiary companies.
b) set up a number of separate companies. I think this is probably the better option if you are looking to set up separate businesses. Each of these companies would then have its own managing board, bank account and annual accounts. This may seem a little over-burdened. but it will give greater protection if one of the businesses fails financially - the other companies would not be liable for the debts of the failing company.
c) Set up a single company with a number of trading names. This will be a good option if you are really only operating a single business, but you want to present different names to the public.
As I say, I am not an expert, but I have run a couple of business in the past, and have always been advised to keep them separate.

 

[Pinkie Brown]

Give the guys down at Fratton Park a call. They'll have some tip top advice on all the in's & outs of setting up & running a new company. They usually do it every couple of years.

 

[Weststander]

More limited companies, and holding companies =

More admin, higher accountancy fees, a distraction to the aim of making profits, possibly higher tax if it all goes well and eventually you are making excellent profits in one of them (associated company HMRC rules).

Keep it simple with one ltd co, unless you have real concerns now that one riskier trade will bring down the overall entity.

You can always change your mind later.