Limited Company Questions

[richardgreen]

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

[Joyous]

Hi Richard

Answers to your questions in the order asked.

1. A holding company is simply a type of limited company. It's commonly the parent company in a group of companies. Rather than trade it's main function is to hold the shares of its subsidiary companies and channel the flow of funds and resources around the group as tax efficiently and cost efficiently as possible.

2. Yes one limited company can buy/own another. That's what company takeovers are and how groups are formed.

3. A limited company can buy out a sole trader. As a result the trade will have incorporated and no longer be a sole trade. It's very common for sole traders when deciding to incorporate their business to set up a limited company and then "sell" their business to it.

4. That depends on the country. Some countries will allow you to trade as a branch of an overseas/UK entity while others will insist that you form a company there. Generally once you've been permitted to trade in a country opening a bank account there sould be no problem.

5. Yes, provided the memorandum and articles allow it and these days they generally do.

6. Yes, once again subject to the memorandum and articles.

7. Yes

Regards

Joy

[Hayles]

Hope you don't mind me butting in on your thread but I've a similar question...

I have a limited company (food) and a bridal shop. Can I join the two? I know this would save on bank charges..... any other benefits?

Hayles

[Joyous]

Yes you can. Even if the two businesses have different trading names just ensure that each set of business stationery has a footnote that says something like "Blushing Brides is a trading name of Hayles Limited".

Regards

Joy

[Jphill49]

Have owned a small limited business for 30 years and have four employees. Work has all but disappeared over the last ten years but need to try to keep going until retirement in approx 5 years. Can't afford redundancies, have £40,000 overdraught, and the building is owned by the bank, not us. Own savings are going in to try and keep it going but not much left. What can we do about redundancies for our employees or is there an alternative. They sit there with nothing to do day after day because they know in the end they will get a pay -out, which of course they are entitled to. Is there an answer to this problem?

[minhasryk]

Hi Richard

Answers to your questions in the order asked.

1. A holding company is simply a type of limited company. It's commonly the parent company in a group of companies. Rather than trade it's main function is to hold the shares of its subsidiary companies and channel the flow of funds and resources around the group as tax efficiently and cost efficiently as possible.

2. Yes one limited company can buy/own another. That's what company takeovers are and how groups are formed.

3. A limited company can buy out a sole trader. As a result the trade will have incorporated and no longer be a sole trade. It's very common for sole traders when deciding to incorporate their business to set up a limited company and then "sell" their business to it.

4. That depends on the country. Some countries will allow you to trade as a branch of an overseas/UK entity while others will insist that you form a company there. Generally once you've been permitted to trade in a country opening a bank account there sould be no problem.

5. Yes, provided the memorandum and articles allow it and these days they generally do.

6. Yes, once again subject to the memorandum and articles.

7. Yes

Regards

Joy
Dear all,

I have my registered company in Baku, Azerbaijan and also want to open a trading company in UK, is there anybody who can advice me about the procedure and possibilities?

Thanks
Nadeem

[sprinkles]

Hi there can anyone shed some light on the precise meaning of an umbrella company and what happens to a child company if the parent company is in administration.

Can a dormant company that has made no significant transactions and not submitted its accounts and has no regsitered office still reatin a regsitered staus at companies house > thanks guys .

[dirtbikepartsuk]

Hello, we are down as
Nature of Business (SIC(03)):
7487 - Other business activities

We started doing just service and reapair to motocross bikes, now have expanded to other mechanical services. Gardening machinery, jetski's, go karts, scooters and now we need to do cars to help boost custom and cash flow. We are a small business just managing on local word of mouth.

What if any legal complications could their be, and would there have to be seperate accounts for any of them? advertising the differnt sectors could be eased by trading under a different name as i have seen in the previous comments and posts. We are running all of these from the same business premesis.

Many Thanks
Shelley