richardgreen started this topic @ 13:17 on 28/11/2005
Dear All,
I wonder if anyone can shed any light on the following:
1. What is the difference between a Limited Company and a Holding Company?
2. Can one Limited Company buy\own another Limited Company (totally or a percentage)?
3. Can a Limited Company buy a Sole Trading Company?
4. Can a UK Limited Company trade overseas and open up bank accounts in the respective countries? This is because we have a internet based business that we would like to expand to other countries and would be reluctant to open up a Limited Company in each country that we trade in.
5. Can a Limited Company have brands that are in completely different industries?
6. Can a Limited Company have various brands within it and also own other Limited Companies?
7. Can a Limited Company buy stocks and shares, as an individual person could?
Sorry for all the questions. Some of them relate to our business as things currently stand, while the other questions are with future expansion in mind.
Many thanks
Richard
RE: Limited Company Questions
James Smith | 28/11/2005 01:32 PM
Richards,
Ref 1, a holding company is simply a company that "holds" other limited companies and doesn’t actively trade. Ie the company "holding" is 100% owned by you, holding may in turn owns 100% of the shares in its two trading subsidiaries "Trading1" and "Trading2". It isn’t often this is a sensible option for a small business.
Yes to 2-7, you can do what you like with it if it is your company as it is a legal entity in its own right. Quite whether it would be wise to do the things you list is quite another matter, as some of these will potentially damaging tax implications.
When ever you are dealing with companies do seek proper profession advice. From the type of questions you are asking it sounds as if you are trying to plan your company from base principles which is going to lead you down an awful lot of blind alleys – some of which will be rather costly to you.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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