A stupid question about Ltd companies

[Kerwin]

I've been recommended by a solicitor to register as a Ltd company. I've been meaning to do it for some time but one thing is holding me back. Due to past problems I have had I don't want my address to be the company-registered address so I would need a virtual office. But I'm not ready to start trading with the company yet.

So can my company stay dormant even though it is paying for a virtual office so they can use that as the registered office?

 

[Newchodge]

I've been recommended by a solicitor to register as a Ltd company. I've been meaning to do it for some time but one thing is holding me back. Due to past problems I have had I don't want my address to be the company-registered address so I would need a virtual office. But I'm not ready to start trading with the company yet.

So can my company stay dormant even though it is paying for a virtual office so they can use that as the registered office?

Why not wait until you are ready to start trading, then register?

 

[MRQ]

So can my company stay dormant even though it is paying for a virtual office so they can use that as the registered office?

It can stay dormant so long as YOU (personally) are paying for an accommodation address; which need not be a full-blown 'virtual office'. Many registration agents can help with this - though you should explain your intentions to keep the LTD dormant to them and have them invoice YOU.

 

[ctrlbrk]

But I'm not ready to start trading with the company yet.

So can my company stay dormant even though it is paying for a virtual office so they can use that as the registered office?

I'm not trading yet so I have communitcated to HMRC as such and they consider my company 'dormant' for tax purposes. However this is different from how Companies House treats its status, which is shown as 'Active'.

So I'd reply yes to your question.

 

[Onthebrightside]

Can't you just put your accountants address down as the registered address?

 

[Kerwin]

I think you are all right. I'll just wait till I'm ready to trade.

Sorry for the stupid question.

 

[DontAsk]

Your accountant will probably offer the service of acting as registered office.

 

[Lawson@CBF]

We have lots of individuals and established businesses that register no matter their business status.

As long as the invoice is settled your postbox and ability to use the virtual office address will still be valid.

 

[Mark T Jones]

I think you are all right. I'll just wait till I'm ready to trade.

Sorry for the stupid question.

No apology required - the beast time to ask is before you act!

Like others, I can't really see why you'd set up a company before it's needed.

 

[IanSuth]

No apology required - the beast time to ask is before you act!

Like others, I can't really see why you'd set up a company before it's needed.

Because it means when you do start you can put all the invoices for hosting etc through the ltd co rather than having to try and sort it later. Obv no point in doing it years in advance, but I can see a use in a few months

 

[Kerwin]

Like others, I can't really see why you'd set up a company before it's needed.

I'm talking to a lawyer about getting a couple of contracts written for some software that I am developing and they suggested that I register an Ltd and transfer the IP from myself to the company and then the contracts would be between the company and customers rather than me as a sole trader.

 

[MRQ]

I'm talking to a lawyer about getting a couple of contracts written for some software that I am developing and they suggested that I register an Ltd and transfer the IP from myself to the company and then the contracts would be between the company and customers rather than me as a sole trader.

That's a not-unwise strategy... 'ring fencing' IP inside an LTD is often done. - Get some advice too on registering the American Copyright; theoretically it shouldn't be necessary - but does have certain advantages, and doesn't cost much.

 

[Lisa Thomas]

I appreciate a solicitor has told you to register as a Limited Company, but I would expect you to reply on your accountants advice.

 

[numbersrule]

I'm talking to a lawyer about getting a couple of contracts written for some software that I am developing and they suggested that I register an Ltd and transfer the IP from myself to the company and then the contracts would be between the company and customers rather than me as a sole trader.

It sounds like you are preparing Contract wording in advance in relation to future business with future customers. So the solution to your original OP should involve considerations of how to time everything. It seems to me that you could advise your Lawyer that you will indeed be trading as a LTD by the time the Contracts are signed. At that point you will be trading. You don't need to Incorporate a LTD in order to prepare unsigned wordings.

However, in my experience, by the time you are in your position one tends to have a LTD Company name in mind and as soon as that enters your consciousness, the tendency is that you begin to worry that by delaying the Incorporation/Registration someone else might steal the name and register it before you. It is that thought that motivates the Registration in many cases I suspect.

 

[Russ Michaels]

there are loads of company registration services out there who will give you a registered address for the business and for directors, so you don;t have to use your home address.

I use companiesmadesimple.com both for myself and for my clients when I register companies for them as part of their small business setup package.