Setting up LTD company with 50/50 share..

bowlingo

Hi all,

Me and a freind are looking to set up a LTD company of which will be on a 50/50 share basis.

I set the company up online 3 months ago in my own name and put myself as the only director and said it was worth £1.00 (didnt know what to say here as its currently worthless)

We need to somehow set it up so we both own a 50% stake in the company and have no idea how to do it......

Also when we set up the Barclays business account what would the procedure be here so the account is in both of our names and not in one of our names more than the other (not sure if they need a single persons name who is solely reponsible for the account)

Thanks in advance

Funky_Bold_Ribena

IIRC you just add a director and you can amend the share values on the Companies House website.

The account is set up in the company's name, with one named person the main one and the other as an additional cardholder.

bowlingo

Funky_Bold_Ribena wrote: »

IIRC you just add a director and you can amend the share values on the Companies House website.

The account is set up in the company's name, with one named person the main one and the other as an additional cardholder.

Thanks for the reply....so basically you can have a true 50/50 split company and it dosent have to be a 51/49% thing of which gives one person control of it i.e if you had 1 director at 40% and 2 at 30% etc?

Also as far as the bank account goes there allways has to be a main account holder....this is the person whos credit file is checked? So really its similar to having a bank account and having the wife etc as an additional card holder but the main cardholder is 100% responsible for it in every way?

Thanks

bowlingo

Also when you say you simply go onto the companies house website and put the other director on who gets the letters for the returns etc if both 50/50? I assume there is allways an overall person who is reponsible etc?

Funky_Bold_Ribena

bowlingo wrote: »

Also when you say you simply go onto the companies house website and put the other director on who gets the letters for the returns etc if both 50/50? I assume there is allways an overall person who is reponsible etc?

The company gets the post at the registered address. You can have whatever share distribution you want as long as it adds up to 100%.

bowlingo

Funky_Bold_Ribena wrote: »

The company gets the post at the registered address. You can have whatever share distribution you want as long as it adds up to 100%.

The Registered address is an address in London as I didnt want my home address down as the companies address...they forward the HMRC letters only to my home address...

So in effect my home address is going to be tied into it more than my partners? I am trying to get it truly 50/50 liable etc.....

Funky_Bold_Ribena

Look - go onto the Companies House website and look at the rules, regulations and liabilities.

bowlingo

This is the official companies house website?

http://www.companieshouse.gov.uk/

Atidi

bowlingo wrote: »

Hi all,

Me and a freind are looking to set up a LTD company of which will be on a 50/50 share basis.

I set the company up online 3 months ago in my own name and put myself as the only director and said it was worth £1.00 (didnt know what to say here as its currently worthless)

We need to somehow set it up so we both own a 50% stake in the company and have no idea how to do it......

Also when we set up the Barclays business account what would the procedure be here so the account is in both of our names and not in one of our names more than the other (not sure if they need a single persons name who is solely reponsible for the account)

Thanks in advance

Usually when you set up a ltd co online it has 100 shares (unless it lets you specify otherwise)

It sounds like you took 1 of those 100 shares on incorpration, so there should be 99 left, unalloted.

Let your friend buy one from the company, then you will be 50/50 shareholders each owning 1 share each.

Simples! :cool:

You don't need to advise Companies House of the new share issue to your friend - that can be updated on your AR when due.

If you wish to appoint your friend as an officer of the company (director or secretary) then you will need to advise CH of this fact.

In regards the bank account, that should be in the name of the limited company (which is a different legal entity to any officer or shareholder).
If you already have one set up in the name of the company, contact the bank and ask them how to add an additional/alternative authorised signatory to the account.

bowlingo

Atidi wrote: »

Usually when you set up a ltd co online it has 100 shares (unless it lets you specify otherwise)

It sounds like you took 1 of those 100 shares on incorpration, so there should be 99 left, unalloted.

Let your friend buy one from the company, then you will be 50/50 shareholders each owning 1 share each.

Simples! :cool:

You don't need to advise Companies House of the new share issue to your friend - that can be updated on your AR when due.

If you wish to appoint your friend as an officer of the company (director or secretary) then you will need to advise CH of this fact.

In regards the bank account, that should be in the name of the limited company (which is a different legal entity to any officer or shareholder).
If you already have one set up in the name of the company, contact the bank and ask them how to add an additional/alternative authorised signatory to the account.

Thanks for the reply....

Whose address does the bank account info go to and whos name? Whose address does the HMRC paperwork go to etc and who is legally liable for paying the tax etc?

Here is the scenario I am trying to establish...Say a £1000 tax does not get paid does this mean they come after me for £500 and my partner for £500?

Or say we get in trouble with the bank and cannot repay them (not that we would even attempt getting credit) would they go after me for 50% of it and my partner for 50% of it?

I have no issues whatsover in setting it so my partner has 50% as long as I am completely sure he is 50% liable for anything that takes place otherwise I am putting myself on the line more than he is and as far as im concerned thats not 50%.....

Thanks

Funky_Bold_Ribena

bowlingo wrote: »

Thanks for the reply....

Whose address does the bank account info go to and whos name? Whose address does the HMRC paperwork go to etc and who is legally liable for paying the tax etc?

Here is the scenario I am trying to establish...Say a £1000 tax does not get paid does this mean they come after me for £500 and my partner for £500?

Or say we get in trouble with the bank and cannot repay them (not that we would even attempt getting credit) would they go after me for 50% of it and my partner for 50% of it?

I have no issues whatsover in setting it so my partner has 50% as long as I am completely sure he is 50% liable for anything that takes place otherwise I am putting myself on the line more than he is and as far as im concerned thats not 50%.....

Thanks

As per the previous answers, the address is the company's addresses. If you don't understand what a company is, as opposed to a partnership, you need to find out. Try looking on the companies house website!

Deja Vu....