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Time to set up LTD company to buy property


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Hello All

 

I am currently buying my first UK BTL property and I have decided to buy in a LTD company.

 

I have a deadline to meet as the property is a new build so I need to know if I have time to set this up.

 

I do already have another UK LTD company I use for work purposes, so I have an accountant etc in place.

 

So the question is, in general from start to finish how long will it take to set up a new LTD company to buy the property with?

 

(The mortgage offer is in place already, to buy through a LTD company - so its just the company side to do)

 

Thanks

Matt

 

 

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Hi Matt

 

It can take up to 48 hours to register the company, depending on which formation service you decide to choose and when it's processed. Costs are ~ £20.

 

You should be able to ask your existing accountant to set it up for you as part of your monthly fee if you provide them with the details like company name, directors, shareholding type/split.

 

Make sure you select the relevant SIC code as it could affect the mortgability of the company.

Personal Blog: https://abcdad.co.uk
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Looking to read some Property books? https://abcdad.co.uk/books/property-books
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I found setting up a company with companies house to be a fast and efficient process. The real pain is applying and waiting for the company bank account to be setup and functioning. HSBC took about 5 weeks from start to finish (May 2017).

Hope this helps

Paul 

 

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If you have a Metro Bank close to you, they can set one up on the spot if you pass all their address and credit checks. 

 

The wife and I opened one in 2 days as the Mrs had to have her check referred to head office. But once passed, they just take about an hour to collect details of your business (e.g. purpose, estimated income), get you to review the application, then refer it to their manager/head office for approval. This takes about 20 mins.

 

Once approved you receive your debit card and online banking details on the same day.

 

Have to say it was very efficient. Standard business account is free if you have over £5k balance at the end of each day, otherwise it's a £5 fee for that month.

 

This was compared to Santander for my other limited company account where it took about 3 weeks to set up and receive all the docs and card.

 

 

Personal Blog: https://abcdad.co.uk
Property Spreadsheet and Deal Analyser: https://abcdad.co.uk/property-spreadsheet
Looking to read some Property books? https://abcdad.co.uk/books/property-books
Follow on Instagram: @abc.dad

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  • 2 weeks later...

Hi Matt

 

Before you set up your company there are a number of considerations you should take into account. 

 

Here is an article that my tax team wrote on this subject

 

http://www.optimiseaccountants.co.uk/limited-company-the-best-structure-for-tax-and-wealth-planning/#.V2gsN1dh2Rs

 

Hope it helps

 

Simon

Warm regards

 

Simon Misiewicz| Business Development Manager

Optimise Property Tax Specialists

 

See our blogs & articles: http://www.optimiseaccountants.co.uk/category/blog/

 
Need an accountant?
Book a call at a time that is convenient for you here.
 
Need a tax question answering?

 

Book a time that is convenient for you here.
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