Hi all, thanks for taking the time to read my question.
I own three separate Limited Companies operating as independent franchised outlets in different regions of the UK. They are identical in terms of their brand identity, product offer etc.
- Each has their own business bank account
- Each has their own premises which are held on leaseholds under each separate Ltd Company
- Each has their own manager, team and runs their own payroll
- Each is owned by the same franchisee who is the sole director with 100% shareholding in each
- The franchisee is independent of the franchisor
- Companies are independently registered for VAT
- Two are on 20% VAT as turnover is in excess of £230k, one remains on the Flat Rate Scheme (turnover now approx £150k)
- Companies file separate accounts
- Companies founded at staggered times across a 5 year period as the franchisee purchased new terrirory rights / franchise agreements for new areas.
- Companies have been trading for between 5-10 years
- Director intends to sell off the companies individually as part of a staged retirement in the future.
- Two of the companies had a second Director when founded who has now resigned leaving the current director as the sole shareholder.
- The third company was founded by the current director.
Given that associated businesses cannot join the flat-rate scheme, I just want to check that the remaining business on the flat-rate scheme has the right to be on it.
- None of the three Ltds are under the main influence of the other
- There are no financial links between the Companies and no financial support has been given by one party to the other (e.g. no loans etc)
- Economic links are minimal/absent (one pays a small consultancy fee for HR advice that all benefit from)
- Organisational links are limited to the Director, and one area manager, who are on the payroll of one of the companies but all companies have the benefit of their employment.