LTD Company Account Idea for Bad Credit Individuals.... Would this work?

mrjam

Hi All

I'm currently in the process of registering a small 1 man LTD company, although unfortunately due to redundancy a couple of years ago and financial difficulties my credit rating is what i would describe as "shot to pieces" - couple of CCJ's and a few defaults but unfortunately nothing can be done about that now other than what i'm doing and paying those off.

I've been told that with my current credit rating, if i was to go down as a director of the LTD company i may aswell not bother, as i will NOT be able to get a business account with any bank as they credit check the director of the company prior to opening or offering facilities, even though i would not be wanting any type of credit facilities, just a standard current LTD account with no borrowing.

I was then advised by my newly appointed accountant (family friend for many years) that this is the best course of action:

1.) Register the company with companies house, with my partner as the sole and only director (she has a perfect credit score of 999/1000).
2.) Once documents are received, have her open the business account with one of the high street banks.
3.) Operate the business for a good 3-6 months with her as the sole director/signatory and then write to companies house adding me onto the business as a joint director.

He says this solves the problem, i.e the business account is then open and theres nothing illegal involved at all.

Does this sound like 1. a feasable idea and 2. a legal idea?

Thank you.

97trophy

I agree with your accountant - go for it! And good luck with the new business.

Fiddlestick

mrjam wrote: »

Does this sound like 1. a feasable idea and 2. a legal idea?

Thank you.

Yes this is legal and yes this is feasable.

Just don't plan on taking any money out as dividend payments until you get the shareholdings sorted out.