SVA Forum

[OfficeStuff]

Hi
Has anyone been asked by a client to set up a company, asap? I'm familiar with Companies House etc. and have done the preliminary search to make sure there are no existing or proposed companies with the same name. The next step is Mems and Arts, so I thought I'd do a google search. UKCorporator came up - they do company set ups on line for £69.95 to include mems and arts. You go through a question and answer session and Bingo. One new company registered.

Any thoughts? I'm a bit dubious, but the client seems keen...
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Carole Meyrick
Office Stuff
Perfectly Practical Office Support

[Sally@Stonetext]

You need to go through things with them, i.e:

Why do they want to set up a company?
Are they aware of the actual cost and legal implications of running a company?
Have they previously been disqualified from being a Director or are there other factors that would prevent them from being able to be a Director?

There are good reasons why some people would want to operate as a company but unless you have a good income to offset the costs of having your accounts fully audited each year - in my experience around £700-800 plus all the other hoops you need to go through and rules you have to adhere to - then it probaby isn't worth it.

I'd make sure they have done ALL their homework on what's involved before setting up. Make sure you get things down in writing because you personally could come seriously unstuck. Do NOT make any recommendations to proceed, just give them the pros and cons and let them make up their minds. You are not qualified (or insured) to give them legal or financial advice. I don't think you can set up a company on someone else's behalf - they have to do it themselves, otherwise the possibilities for mischief would be huge.

Companies House have leaflets available about the roles and responsibilities of being a Company Director which are quite useful.
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Sally
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[coxvos]

Hi Carole

A few years ago a friend and I set up a limited company and we used an online service called Quick Formations based in Northamptonshire. It was straightforward and simple.

However as VA I would be wary of doing this - the client should first of all seek the advice of an accountant as to whether or not a limited company is the right way to go for their cirumstances. I think I would be researching ways of doing it but asking the client to go through the actual process - to protect your interests.
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Regards

Lynn

[OfficeStuff]

Thanks both

Client and his wife have just come back from 10 years in Australia. He ran his own company over there and this has been sold. They have moved back to Wales because their families are here. He is the driving force and they have decided they want to take over a large unit on one of the industrial estates to set up a children's soft play centre. They will be putting nearly £100,000 of their own money into the venture, and the balance will be from a bank loan secured on their house (which is very nice, is probably worth quite a bit, and may very well be owned outright).

My advice to them was that for their own protection they should become a limited company asap - if things go pear-shaped and you're a sole trader you risk losing your house etc. far quicker. They have entered into an agreement with the company supplying the equipment, who have provided all sorts of very helpful background information and templates, and my first task has been to complete the business plan from one such template, which states that a limited company will be set up to run the new business. I have no doubt that the client is quite capable, having run an obviously successful company in Oz.

Any more thoughts on the subject?
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Carole Meyrick
Office Stuff
Perfectly Practical Office Support

[OfficeStuff]

Lynn
I appreciate what you're saying about the client doing it but this is why I've come on board... he's working long hours in South Wales during the week and only gets home late on Friday evening, departing early on Monday morning. He's not terribly computer savvy either. The way I'm operating is that I do the work, research or whatever, and email it to him, and then get his express written (via email) confirmation that it is OK...

I shan't be doing ANYTHING without his written confirmation, and without putting all the details in front of him first so that he knows exactly what I shall be doing on his behalf before he says yea or nay.
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Carole Meyrick
Office Stuff
Perfectly Practical Office Support