Ordinary Shares advice

[Tearz]

Hello,

Someone who is willing to invest a lot of money into my company but one of them is not a "Limited" Co.

Do I have to make the company a "limited" co and declare the shares to companies house if the investor is willing to invest £100K into my non-limited company ?

Advice anyone?

Thanks

[Eric Mc]

No.

I presume you are talking about a sole tradership?

[Tearz]

Eric Mc said:

No.

I presume you are talking about a sole tradership?

Yes, I was talking about sole trader....Sorry.

Thanks

[Eric Mc]

Companies House normally only confine their interest to Limited Companies or Limited Liability Partnerships (not ordinary "old fashioned" partnerships).

If you have an individual willing to put so much investment into an operation YOU are running as a sole trader, THEY may want the business structure to be reconfigured to reflect their commitment to YOUR business. If this is the case, maybe restructuring your business as a Limited Company might be appropriate.
Alternatively, the business could be restructered as a formal partnership. The partnership does not have to be "limited". Indeed, the vast bulk of trading partnerships are not "limited".

At this level of outside investment, if you have not done so already, I would strongly advise hiring the service of a qualified accountant and, regarding formal partnership agreements (highly recommended if going down the partnership roiute), a solicitor's services might also be a good idea.

[Tearz]

Eric

Thanks for your time to write up - very useful advice.

Thanks once again.

Cheers

A

(I'm in the car hire business)