Is there a simple way to split up a Ltd Co?

Split of limited Company A into three small limited Companies?

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 Hello the Food wholeseller with big warehouse is running as ltd A and they have two shops in diffrent location but running everything as one ltd A and they would like to split those two shops in to ltd B and C so the shops are class as seperate limited companies? Is it a easy way to split ltd A into A, B and C?  all there ltd comapnies will be owned by same people  Many Thanks 

Replies (9)

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By Accountant A
07th Feb 2019 22:04

The Food wholeseller needs to consult their accountant who will take them through all the commercial, accounting and tax issues. Their solicitor will assist with legal matters.

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By Duggimon
08th Feb 2019 09:17

"There" is either a pronoun starting a sentence or clause, or an adverb indicating a place, for example "There is a competent firm of accountants somewhere out there, but I'm not it". "Their" indicates the possessive, such as "their limited companies are in trouble if they don't seek proper advice".

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By Justin Bryant
08th Feb 2019 10:02

A capital reduction demerger should work here.

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Replying to Justin Bryant:
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By Vile Nortin Naipaan
08th Feb 2019 11:00

Quote:

A capital reduction demerger should work here.

Demerger? You think that's the best solution, based on the plethora of information provided, do you?

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Replying to Vile Nortin Naipaan:
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By Justin Bryant
08th Feb 2019 11:22

I did not say it's the best solution. I merely said it should work here (it's not an expensive solution if you shop around).

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Replying to Justin Bryant:
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By Vile Nortin Naipaan
08th Feb 2019 11:38

You seem to have completely missed my question.

I wasn't asking "why a capital reduction demerger?", but if you're demerging, that's another question, given that a statutory demerger would be simpler and will work for trading operations.

My question was "why a demerger at all". The OP has just said that the requirement is to have different trades in different conpanies - although we know not why, perhaps to ringfence them - which can be achieved without a demerger.

If we demerge it all, we lose the potential benefits of group reliefs.

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By gbuckell
08th Feb 2019 11:14

There are a number of options. A capital reduction demerger is one as suggested by Justin but not cheap in professional fees. We need to know what the shareholders' objectives are as well as more information about the assets, etc. This is not a simple exercise and proper professional advice should be sought from the outset.

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By Duggimon
08th Feb 2019 15:40

Just set up some new companies and change the name over the door, it'll probably be fine, don't worry.

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Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
11th Feb 2019 11:57

A S110 Agreement might be applicable. I can recommend someone who can advise.

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