Inter-business loans/transfers

C

Compodude

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I have a existing LTD that has been trading for 9 years it has approx 60K in the accounts with no fixed assets. The directorships held by myself and spouse. No debts, no employees. I want to move into a new line of business and have several options but am not sure how to best achieve what I want.

If I start-up up a new company (B) and keep company A in place for the time being. Can i transfer the 60K in company A to set-up the new business venture via an "inter-business loan" to company B?
 
What J Ryan is saying is that you can't lend money from one company to the other unless they are a group. Groups can't avail of the audit exemption for some stupid reason!

As the only asset in the Current company is the €60k in cash, you could register a business name and set up a new bank account and trade under the current company.

Looking longer term if either business was to become successful and there was potential of one trade dragging the other down then 2 companies would be better. For now work under one company.
 
Change the memorandum of association to allow you to conduct new trade.

A loan to a connected person which is over 10% of (relevant) assets is a problem.

Look at this
[broken link removed]
 
Thanks all for the answers!

If I trade under a business name to what extent do I need to show the company name? Does this need to be on product labels and invoices?
 
Compodude said:
Thanks all for the answers!

If I trade under a business name to what extent do I need to show the company name? Does this need to be on product labels and invoices?
Click to expand...

There's a good summary of the requirements here: [broken link removed]
 
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