Why Register Multiple Limited Companies

Why Register Multiple Limited Companies

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I have just completed a Credit Check on a customer who is a Limited Company that I have had a few concerns about.  This has revealed that the Sole Director has 1 dissolved appointment and 70 Resigned appointments between 2004 and 2009.  The majority of these companies have different company names of 3-4 jumbled alphabet letters.  The Companies are Dormant and have been active for  between 1 month and 3 years.  This Director has 2 active Directorships currently and the other is with a company that has a 2nd director (husband) who also has 51 Resigned appointments and 1 Dissolved appointment all with completely different company names but in the same jumbled format. 123 Companies in all - Not bad for two 30+ year olds! Needless to say we will not be doing business with this Company!! But, out of curiosity, why would someone register so many companies and make them dormant, what are the benefits and is it legal?  Any suggestions.

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By Steve Kesby
11th Jan 2012 15:25

One possibility

Is that they're simply selling off the shelf companies?

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By perry23
11th Jan 2012 19:44

paye?

With those dates could also be they were set up to gain paye incentive fees?

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By RussellD
12th Jan 2012 09:51

Property Development

Some of the bigger property developers seem to register one limited company per property. Buy and sell the property quickly and it could have a fairly short shelf life.

Just a thought.

Could you not ask the potential client?

 

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