Giving a limited company away for free

[SoupDragon]

Is this a good idea? It would save me the costs of winding it up and save someone else the cost of starting one up.

It would go something like this:
- I take out what I'm owed, leaving money for outstanding VAT, corp tax and PAYE.
- I pass the accounts spreadsheet to the other party
- If they are happy, I fill in the forms to transfer directorship, secretary and registered address to them
- I inform the bank and accountants (SJD) of the new director

I am going permie (gasp) at a startup company (stock options - yay?)

[Flat Eric]

Why would anyone want to do that when the likes of Nixon Williams will set up a company for you for free if you use them for your accountant...

[malvolio]

Is this a good idea? It would save me the costs of winding it up and save someone else the cost of starting one up.

It would go something like this:
- I take out what I'm owed, leaving money for outstanding VAT, corp tax and PAYE.
- I pass the accounts spreadsheet to the other party
- If they are happy, I fill in the forms to transfer directorship, secretary and registered address to them
- I inform the bank and accountants (SJD) of the new director

I am going permie (gasp) at a startup company (stock options - yay?)

The company has a notional value simply by existing as a trading entity with a credit history and some goodwill as well as its actual assets. Probably far safer, legally, to sell them the company at an agreed nominal value of say a pound a share - but I would get professioanl advice to be certain.

[NotAllThere]

The key phrase there is:

if you use them for your accountant...

The cost of setting up your company is factored into your accountancy fees. It isn't free.

tbh, I'd want at least for an accountant to review all the accounts, and possibly a legal check. Which would certainly cost more than the £50 or so for setting up a new company myself.

[FiveTimes]

The key phrase there is:



The cost of setting up your company is factored into your accountancy fees. It isn't free.

tbh, I'd want at least for an accountant to review all the accounts, and possibly a legal check. Which would certainly cost more than the £50 or so for setting up a new company myself.

At least when you form your own company, you will have a say in the naming of it... I would rather just set one up and save the hassle.
Plus its a valid expense ?

[Crossroads]

How would you indemnify the purchaser against any activities carried out by the previous owner that could lead to any claim against the current board?

When you buy a business you are buying the risks as well.

[SoupDragon]

It was just an idea.

I think that I'll just close it down. Thanks anyway

[dude69]

you can set up a company for £20, or £50 same-day. Passing on your accounts and complexity is not worth it to save £20.

Obviously there's VAT and PAYE registration to consider as well, but if you know what forms to fill in, it won't take long.

[Crossroads]

Of course, if your company has significant genuine trading losses, it could be handy for someone looking to offset CT.