What is the Form 88(2) for?

What is the Form 88(2) for?

Didn't find your answer?

Why don't the details from the 88(2) appear on the Annual Return?
I set up limited companies for clients and send in the 288a and 88(2). The first Annual Return arrives - directors and secretaries details completed but no shareholders details.
I've spoken to Companies House but couldn't get a sensible answer. Is there any point sending in an 88(2) on incorporation?
Andrew

Replies (6)

Please login or register to join the discussion.

avatar
By User deleted
26th Oct 2006 13:30

A legal requirement ?
I think notifying Co's House of share capital being issued is a Legal requirement, so completion of form 88(2) [and PUC2 before it many years ago] is a long established procedure.

Turning to Co's House not logging the data into the paper 363s Annual Return, I speculate that this is to encourage people to file online (or put another way - discourage people from using the paper 363s).

Regarding paper 363s form, I've got to 'phone Co's House to get one for a client as the original not received. I wonder if this is another attempt by Co's House to increase work for those who don't file online - don't send a paper 363s in some cases anymore ?

Thanks (0)
avatar
By frauke
26th Oct 2006 14:27

I don't know anymore!
Its not just on incorporation - I've have had every Form 88(2) submitted over the internet rejected. The reasons given is they seem to treat them as if I increasing the share capital, (isn't that form 123?) not just allotting issued share capital.

And yes, I can't get a clear answer from Companies house either.

The only time I have sucessfully updated the shareholder information is during the filing process of the annual return.

Thanks (0)
avatar
By steveoneill
27th Oct 2006 15:09

Nominees are the problem
The main reason why shareholders are not shown are the 1st annual return is because historically companies were formed by the off shelf "nominee" method. That is were the original subscriber shares are issued to the formation agents nominee company(ies) and then transfered to the real owner on the sale of the comapny. These transfers are not filable at Companies House, so therfore thay have no idea who the real shareholders are, for the initial subscriber shares. So they cannot know all the shareholders.

If you are still filing 288a's and an 88(2) for the incorporation of your clients, you are still forming companies in that old fashioned way, which does not do your clients any good. The processing time for this paper at companies house is anything upto 15 days. You still have potential problems with nominees still remaining as officers. Basically once you have ordered the off shelf company, gone through all the messing afterwards, it can be anywhere from 3 weeks or longer before your client could open a bank account and trade.

This practice will hopefully have an end put to it by the implimentation of the new Companies Bill going through Parliament at present, were at least one officer has to be a real person, not a corporate entity.

We form companies for over 1,000 accountancy firms around the UK, we form the company in around 3 hours with your client as the officers, the full required share holding, reg. office etc. No nominees, no further forms and time. Your client can open a bank account within 24 hours. It is a simpler and safer method for your client. This costs less to do than any nominee companies we occassionally form as there is no stamp duty on the stock transfer forms.

For your next incorporation visit our website www.btc-nw.co.uk and for all new accounts we give a £20 discount off your first order.


Steve O'Neill
Business Tax Centre Limited

Thanks (0)
avatar
By User deleted
28th Oct 2006 01:47

For free then
£20 discount. Good deal as many online formation companies only charge £19.99!

Thanks (0)
avatar
By User deleted
01st Nov 2006 19:32

Cheapskates united
To Andy - yes you can get companies for this but in my (long) experience you get what you pay for and those clients that came to us with a ready formed company that they had proudly formed for next to nothing always ended up paying more in the end for us to sort it out than those which we set up properly from day 1.

Regarding forms 88(2), the chap who gets them constantly rejected must be doing something wrong. I have personally submitted hundreds of these forms and never had one rejected. Recently though as you say, the information has stopped being updated on the Annual Return whereas if you submit an 88(2) electronically then the next AR you receive will be correct.

Thanks (0)
avatar
By frauke
02nd Nov 2006 13:44

rejected forms
I agree I may be filling the forms in incorrectly over the internet - I tried doing it different ways - all rejected.

Spoke to the help line, who talked me through completing the forms - they also were rejected.......

Its a bit difficult to establish what I'm doing wrong, (if anything) when I cannot find out the correct way from the helpline.

The only time I have no problems is when I update it through the annual returns

Thanks (0)