Was talking to a prospective client (Ltd Co) today -- he does business coaching (as a franchisee), turnover is a little way short of the VAT threshold, but he is 'voluntarily' VAT registered (I say 'voluntarily' because his franchisor insists he registers).
He also lets student property. He has a completely separate Ltd Co for this, and said that his accountant had told him he was legally obliged to have two separate Companies.
Have to confess I had never heard this before -- I can see the logic in the arrangement, but wasn't aware of any statutory compulsion -- and have since scoured Companies House & HMRC websites (without success) to find chapter-and-verse.
Think it's to do with the fact that the two lines of business are not in anyway related. If say he was a business coach and also a business advisor then he could run the two businesses under the same company.
Is it still the case that as long as the companies objects clause in it's Articles describes it as a "general trading company" than it can pretty much trade in anything?
Is it still the case that as long as the companies objects clause in it's Articles describes it as a "general trading company" than it can pretty much trade in anything?
-- Edited by ADAS on Thursday 9th of September 2010 07:56:56 PM
The Articles of the Ltd Co for his coaching business do indeed contain the "general trading" clause. And I don't think Merlion's assertion about franchise laws is correct -- I should have perhaps added that the two-company set-up pre-dates the clients franchise purchase.
So thanks for the replies, but frankly I don't think I'm any further forward in my search for a definitive answer
