New Company or name change?

[lyndonw]

Just under a year ago my partner formed a ltd company for her clothing business. The business didn't take off and before things got drastic all of the assets were sold to pay creditors, so essentially the company is now sat at ground zero and not trading.

Im about to start a small local IT support business and on the advice of my local business advice centre am looking for a ltd company.

What would be the implications of changing the name of the company and me carrying on business under this entity?

There are no outstanding liabilities and about £13 in the bank account. It seems that it would be a lot less hastle to file the accounts for this year (which needs to be done anyway AFAIK), change the name at co. house and the bank etc.... than start again from scratch. Also the company would be a year older...

Any opinions/advice greatly welcome.....

[BMS]

Hi Lyndon

There are pros and cons for doing this, as I see it.

Firstly there is no problem with changing the name of the company. You nees to pass a special resolution which must be signed by all members (of the former company) and this must be copied and sent to companies house with the relevant fee. You should then receive a certificate of incorpoartion -name change.

That having been said I'm not sure that a bank would change the name on a business account - you may have to start form scratch in that regard, which may be in your favour as most banks offer 18 months free banking to new businesses and I believe either Abbey National or Alliance and Leicester offer free banking with no time restrictrions.

You will also have to contact Customs & Excise if VAT registered and discuss the issue with them and also Inland Revenue as a new employer.

Hope this helps, any more questions, post them or send me a PM.

[Ozzy]

Hi Lyndon,
The time and costs involved in changing the company name compared to starting a fresh would lend me towards advising starting a fresh company.
The fact the company will be a year old really shouldn't make a difference, but if it did then just buy a shelf company...but then if you done that you might aswell stick with the company you have. Personally, start a fresh, clean slate so to speak.

Banks will change the name of the bank account, as a friend of mine did this about 6 months ago without any problems. That was with LloydsTSB for the record.

[MikeH]

I have to agree that a new company may be a better option. A year of history is not a massive benefit. Is there any adverse history associated with the previous company?

Also look into the costs of winding the previous company. Final accounts will need to be prepared.

[Alpha]

I would agree with Ozzy that it would be more beneficial to start a new company which will not cost a great deal. if you strike of the old company it will cost £10 which should be covered by the amount in the bank account.(make sure that there are no assets inc the remaining £3 left in the company when it gets struck off as this then reverts to the crown).

Depending on whether there have been any movements in the accounts or not you may have to file accounts or dormant accounts with companies house if you keep the company on (If you strike it off there will be no requirements to file accounts).

You may however still have to complete a corporation tax return (CT600) if HMRC have issued a notice (CT630), however if you have struck off the company you would only have to provide them with at most, basic management accounts.

Finally if the company ran into difficulties you may as well ditch the history.

[lyndonw]

Thanks all for the advice. I think that you all made good sense and as such will be forming a new company shortly and striking off the old one shortly after that.

Thanks

Lyndon