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giles s

Setting up a ltd company

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Hi,

I’ve read lots about the pros and cons of investing through a ltd company, I’ve decided this is the right set up for my goals.

My question is about physically setting up the company (not benefits of). Do I literally just go onto companies house and fill in a form? Is there info I should have to hand in order to do this? What are the codes to use to make sure it’s seen as an SPV rather than a standard ltd company (if there is a difference)?

After this is set up, Will I need a business bank account or can I use an already existing personal one (specifically for this). 

Finally once I’ve set these up do I just transfer some money in, record it, tell the accountant then take it back at a later stage as a directors loan?

thanks in advance

Giles

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When we do mortgages at Bespoke Finance we set the companies up for our clients.

You will mainly need your personal information (and that of any other shareholder/director), an address to use for the Company and a name for the compamy.

At one point it will ask you about company activities or SIC Codes, you just need to use the following:

  • 68100 - Buying and selling of own real estate
  • 68209 - Other letting and operating of own or leased real estate

A common website for the ease of use for setting up companies is https://www.companiesmadesimple.com/

Hope this helps....

Yes you will want to set up a Bank Account as soon as possible, prior to a full mortgage application.. There are some great online banks such as Starling Bank, that you can set up within a few hours.


:wub: Get Mortgage Advice from my Team at Bespoke Finance on 08009202001 or email hello@bespokefinance.info 
:ph34r: 
Please don't take my messages on Property Hub as Personal Financial Advice, just a rambling guy passing time on a Coffee Break.
 

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On 1/8/2020 at 1:56 PM, Adam Hosker said:

When we do mortgages at Bespoke Finance we set the companies up for our clients.

You will mainly need your personal information (and that of any other shareholder/director), an address to use for the Company and a name for the compamy.

At one point it will ask you about company activities or SIC Codes, you just need to use the following:

  • 68100 - Buying and selling of own real estate
  • 68209 - Other letting and operating of own or leased real estate

A common website for the ease of use for setting up companies is https://www.companiesmadesimple.com/

Hope this helps....

Yes you will want to set up a Bank Account as soon as possible, prior to a full mortgage application.. There are some great online banks such as Starling Bank, that you can set up within a few hours.

Hi Adam/and all - 

I am intrigued as to other people's experiences setting up a Starling business account - as i have had nothing but nightmares with them the past couple weeks.  

Brief background - i have a new SVP setup in Jan and applied for Starling business account for said SPV, however after many back and forwards emails with Starling (focusing on them not understanding the concept of the SVP purpose - and having them tell me they see my application as a "money lending business" instead of a "BTL business"), they have now informed me my application is cancelled as the SPV company doesn't fit their T&Cs for appropriate businesses. 

Is there anyone who has had similar experience, and if so, have overcome it? 

thanks all,

Adrian 

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Hi Adrian,

I actually set up with them myself, found the set up quite easy. Proving your a business was slightly harder but luckily I managed on the third attempt.

Now it’s set up, it seems quite straight forward.

Thanks,

Giles

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On 1/8/2020 at 1:56 PM, Adam Hosker said:

When we do mortgages at Bespoke Finance we set the companies up for our clients.

You will mainly need your personal information (and that of any other shareholder/director), an address to use for the Company and a name for the compamy.

At one point it will ask you about company activities or SIC Codes, you just need to use the following:

  • 68100 - Buying and selling of own real estate
  • 68209 - Other letting and operating of own or leased real estate

A common website for the ease of use for setting up companies is https://www.companiesmadesimple.com/

Hope this helps....

Yes you will want to set up a Bank Account as soon as possible, prior to a full mortgage application.. There are some great online banks such as Starling Bank, that you can set up within a few hours.

Hello Adam,

Thanks for your response, it helps me too. I am also in a similar situation. 

once opened the LTD (SPV) company, do i need to transfer the money from my personal account to LTD company bank account to pay for the property deposit? consider this as a director loan.

also, can I use personal account to refurbishment the newly purchased property or I have to put money in LTD company account and then use the funds to refurb the property? does it makes any difference? 

 

Regards,

Nav 

  

 

 

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@naveedj it is better you have all your in/out related to the business to your business account so that it is easier to manage in terms of accounting, else it will be difficult to differentiate from your personal debits/credits. So, best to check with your accountant. Director's loan is the lending to the business. You can transfer the money, however this need to be documented and agreed in the minutes of the company board meetings. You should also put a note in the transfer that it is a director's loan so that it is trackable. Your accountant can provide you more details.

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