Company registration

Thanks for that, it's going to be 3 or 4 months before I'm ready so don't know if it will make a difference?

As for tax I was more concerned about the change in status from mortal to director and whether the tax office treat your current non-directorship income differently?

Can understand you not needing a bank account, as some banks will ask for a cert. of incorp. before they hand over any cash etc.

Cheers

You are essentially setting up a dormant company at this stage so you don’t need to do very much at all. All it is is a "shell" with no activity within it.

There will be no impact on your current tax status - by definition a company is a separate legal entity to yourself. The only thing that may arise is that technically as a director or a limited company you are obliged to complete a self assessment tax return. However in practice HMRC don’t normally pursue this for dormant companies and can be quite easily resolved.

Would however suggest you chat to your accountant before you set this up. I have lost count of the number of companies I have had to advise clients to close and then re-open properly as its easier than trying to undo whatever they have done badly on creating the first one. (Silly number of shares, wrong participants etc etc) More generally are you use you need a limited company? It doesn’t sound as if you have any current activity and it may be far too early on. If the only motivation is to “bag a name” then this is rather illusionary as your limited company name doesn’t have to be the same as your trading name. Unlike domain names, only trading with the company brand will start to give it protection.

Hope this helps.

Regards,

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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

Thank you so much!

I appreciate the reply. Don't want to close and re-open for making a silly mistake althought I do believe my initial shares and members will be sensible.

I will be forming a family business initally with only myself as a shareholder. In time I plan to release shares to two family members but not exceeding 15% each.

Have decided to wait until were closer to begining to trade and after i've appointed an accountant.

Regards,