New Company

stevem111

Hi I wonder if anyone who may have done this before can lend some advice.

I work for a smallish, ltd, construction firm and between myself and the director we are looking to set up another company. I say looking, we have everything in place we just have to click the buttons and make the phone calls to go live.

BUT...

The new firms yearly revenue will likely only be circa £50k which due to the design yields a high profit. However the accreditations needed are broadly the same as the construction firm of which it holds the majority anyway.

However the cost to obtain is roughly £6k all in and certain certificates can take over 12 months to obtain. Which obviously firstly hampers marketing and secondly cuts into profits - especially as it would mean as a whole we are paying out twice.

I know we can create a subsidiary or branch/arm etc but if we did so are we able to "piggyback" the accreditations?
By which I mean use the original construction companys accreditations legally for the new company acting as a subsidiary?

Many thanks in advance. :wave:


Just as a quick point I am not refering to the usual pay the money - get the t shirt type acreds such as guild of craftsmen or fairtrades these are namely health and safety and contractor certifications.

Wywth

stevem111 wrote: »

Hi I wonder if anyone who may have done this before can lend some advice.

I work for a smallish, ltd, construction firm and between myself and the director we are looking to set up another company. I say looking, we have everything in place we just have to click the buttons and make the phone calls to go live.

BUT...

The new firms yearly revenue will likely only be circa £50k which due to the design yields a high profit. However the accreditations needed are broadly the same as the construction firm of which it holds the majority anyway.

However the cost to obtain is roughly £6k all in and certain certificates can take over 12 months to obtain. Which obviously firstly hampers marketing and secondly cuts into profits - especially as it would mean as a whole we are paying out twice.

I know we can create a subsidiary or branch/arm etc but if we did so are we able to "piggyback" the accreditations?
By which I mean use the original construction companys accreditations legally for the new company acting as a subsidiary?

Many thanks in advance. :wave:


Just as a quick point I am not refering to the usual pay the money - get the t shirt type acreds such as guild of craftsmen or fairtrades these are namely health and safety and contractor certifications.

Unlikely. I would have thought the existing accreditations were given only to the specific legal entity to which was originally assessed, not to any other you may wish to pass it onto, or even attempt to duplicate it for.

I would suggest verifying this advice with whichever organisation originally gave the accreditation, but I'm not sure how a different company with presumably different operating processes & procedures relating to a different product or service would be be able to use the same accreditation.

(If the company is not offering any different products or services, it would beg the question why is it being set up at all)

stevem111

Its offering a very loosly related service to our original products that we felt would be better being seperate.