Change T/A to Ltd

S

simplyP&L

Guest
Hi ! Enjoy this site seems to be very informative, so we are hoping someone can advise: we are changing from T/A to Ltd company, initially we introduced 25k each as funds to start business 2years ago. Our business is profitable and we have been advised to make this change, however the funds we introduced apparently are not there anymore as we had relevant drawings (wages) and apparently can not be transfered as share capital ....is this the case?
 
When you set up the company you will need to put in actual share capital (paid up share capital). This can be a small amount, but must be real.

Your accountant will advise you about this.
 
could be as low a 1€ each if you want it to be. What happened the 25K you put in did you take it back out tax free as drawings?
 
Hi thanks for the replies. We are now in the process of changing to the ltd company and as in our first post we started with an investment of 25k each, so our question is can this money be transferred to the ltd company as shareholder funds, apart from the value of the t/a buisness itself ?
It just seems unfair that we`ve put this money into the business to start it and cant take it out tax free, any ideas ?
 
If you did not take out the 25K as drawings tax free why can't you take them out now from T/A and if you wish reinvest them in the Ltd Company as share cap
 
thank you for your reply, as our initial investment of 50k total was used to start the t/a business, mainly stock, we have been advised that we can not reinvest it in the ltd company as it is constantly being reused to purchase new stock, therefore it is not physically in the bank to take.
However surely this does not mean it cant be transferred to the Ltd company as share capital till the day comes when it is in the bank! Perhaps we need a second opinion?

maybe this question is too complicated for this forum, thanks anyway
 
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