Company as subsidiary of a company

L

LEDLIGHT

Guest
When I set up a company, and if I wish to create a subsidiary company can anyone tell me the procedure for going about it?
I want to set up a services company, but with a wide range of company objects, might diversify into another area and would be anxious not to tip off my competitors.
Any suggestions appreciated. Thanks
 
Hi

You simply form a new company and make the shareholders of newco Ltd be the existing company.

You should note that a company that becomes part of a group loses audit exemption.

You will need to specify the type of business that the company intends to trade in on incorporation of the company. However most standard objects of a company are usually widely drafted so as to allow most things to be done by the company. You can always change the objects of the company at a later stage.


Regards

capnhand
 
You should take professional advice from your accountant before doing this.

It seems like a messy structure. There are advantages and disadvantages.

It might be simler for the shareholders in company A to simply set up a new company B.
 
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