Private Limited Company question

[amaftau]

I do not know enough about the running of Businesses to understand this properly. But I paid the companies’ house some money to find out information about a company.

The main document I got initially was the certificate of incorporation of this particular plc. This company was founded on the 10th of March 08. Just some things about the information I got didn’t seem too normal.
The companies office is based in Scotland but the director when it was started was named to be in Bristol under duport director limited (this is all public information). This person/firm is obviously an agent. The companies office is based >400 miles away from the agents address.

Page 5 of the document says ‘private company limited by shares’ says that the object of the company is to carry out business as a general commercial basis and as an investment company. It then goes on to say that they have the power to do a number of the following things which I won’t list as it will bore the hell out of everyone.

It says the liability of the members is limited. Also says the company’s share capital is £1000 divided into shares of one pound each. Next it says that the agents name and the agent’s secretary has taken shares of one pound each.

Almost one month later 8/4/08 a new director has been appointed and new company secretary. This is under the names who own the company and who would of set this up from the start.
What I am wondering is: Is there anything unusual about what I’ve described? I mean why would you bother to appoint the agent and the agent secretary as director, each with one share each, then point a new director (yourself) and new secretary (sibling)

I apologise in advance if you think these are stupid questions etc, I just want to get an opinion on this way of doing things. I may even find out something that could help me in the future.

Thanks,

M.

Friend just told me its worth doing only if you are making alot of money and want to pay yourself as a dividend and thus not much tax. Only good for high turnover as you have to pay company co-orporation tax.

Edited by amaftau on Wednesday 21st January 19:12

[amaftau]

thanks. Is it only worth having a private limited company if you are making a lot of money?

[amaftau]

UpTheIron said:

amaftau said:

thanks. Is it only worth having a private limited company if you are making a lot of money?

No.

Ok, so why would you bother? It seems to be set up to me as a ways and means for people doing a number of things (inc laundering) through one buiness and not having any questions asked if paying for things etc.