- Original Poster
- #1
I wonder if anyone can tell me if some law has been broken here, im pretty sure this can't be done but let me explain what has happened.
Last year a family member set up a small business, they work from home and are a sole trader, as the business got a bit bigger her boyfriend and his mum kepts saying you should register as ltd, put your boyfriend down as a director too. She camt to me for advise as i have run a company for many years as said at the moment there is no real benefit to her doing this, small amount of profits, no real liabilities etc and added admin costs for a ltd. She agreed and said it wasn't something she felt comfortable with and was happy just to carry on as a simple sole trader and see if the business ot bigger.
Fast forward to this week, it was her birthday and he "suprised" her and gave her a gift, when she opened it it was a framed incorporation certificate with her name on a ltd company. I don't think she was happy about this but he said oh i registered the company for you. He's not that bright so i think he though that will be something to stick on the wall or that it was some nice gesture but i've said what he's actually done is give you a liability as you will have to submit dormant accounts etc as far as im aware (I have never actually owned a company that hasn't traded) Now she is worried because she doesn't know how ti will affect her trading as the same name as a sole trader, is there any issue here? Also looking at the incorporation documents he has put her down as the only shareholder and the companiss registered office to some account we have never heard of, I assume they helped him set up the company but my question is is this even legal to register someone as a company director without them knowing?
any help much appreciated.
Last year a family member set up a small business, they work from home and are a sole trader, as the business got a bit bigger her boyfriend and his mum kepts saying you should register as ltd, put your boyfriend down as a director too. She camt to me for advise as i have run a company for many years as said at the moment there is no real benefit to her doing this, small amount of profits, no real liabilities etc and added admin costs for a ltd. She agreed and said it wasn't something she felt comfortable with and was happy just to carry on as a simple sole trader and see if the business ot bigger.
Fast forward to this week, it was her birthday and he "suprised" her and gave her a gift, when she opened it it was a framed incorporation certificate with her name on a ltd company. I don't think she was happy about this but he said oh i registered the company for you. He's not that bright so i think he though that will be something to stick on the wall or that it was some nice gesture but i've said what he's actually done is give you a liability as you will have to submit dormant accounts etc as far as im aware (I have never actually owned a company that hasn't traded) Now she is worried because she doesn't know how ti will affect her trading as the same name as a sole trader, is there any issue here? Also looking at the incorporation documents he has put her down as the only shareholder and the companiss registered office to some account we have never heard of, I assume they helped him set up the company but my question is is this even legal to register someone as a company director without them knowing?
any help much appreciated.
