Setting up a new company
Discussion
Bit of an odd question.
I need to set up a new company and there is of course a fee to pay for registration. If my existing company pays the fee, does this give my existing company any rights over the new company? (it won't be listed as shareholders or anything.)
Can i just list the registration fee in the purchase ledger as being my pay? (and thereby pay tax on it of course).
I need to set up a new company and there is of course a fee to pay for registration. If my existing company pays the fee, does this give my existing company any rights over the new company? (it won't be listed as shareholders or anything.)
Can i just list the registration fee in the purchase ledger as being my pay? (and thereby pay tax on it of course).
There is no law stopping one Company A paying bills on behalf of Company B. In fact, when coompanies are "related" (share the same directors, shareholders etc) it is quite usual to see this.
If this happens, Company A ends up with a Debtor Asset in its balance sheet (monies owed to it by Company B) and Company B ends up witha Current Liability in its balance sheet (monies it OWES to Company A).
These balances disappear if and when the debt is cleared.
If the debts remain live at the financial year end of either companyy, then the nature and size of the debt needs to be disclosed separately in the notes to the formal accounts.
If this happens, Company A ends up with a Debtor Asset in its balance sheet (monies owed to it by Company B) and Company B ends up witha Current Liability in its balance sheet (monies it OWES to Company A).
These balances disappear if and when the debt is cleared.
If the debts remain live at the financial year end of either companyy, then the nature and size of the debt needs to be disclosed separately in the notes to the formal accounts.
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