Yes, it is possible to run two or more separate businesses under a single limited company. This involves the use of trading names to compartmentalise the overall company into separate units, each of which can be run as a unique business.
What are trading names?
Trading names, also known as ‘business names’, essentially provide a way for limited companies to trade under a name that is not their registered company name. For example, if the registered company name is “Bristol Green Hammocks Ltd”, a trading name could be “Bristol Green Hammocks”, “Green Hammocks of Bristol” or even a completely unrelated name such as “Blue Tents of Newcastle”.
Furthermore, it is possible to use multiple trading names to run several different businesses, e.g. “Bristol Green Hammocks” and “Blue Tents of Newcastle”. But each of these businesses will be trading as a division of the limited company and this must be made clear in any company documentation, on websites, business stationery, etc.
Please note: Trading names are not just used by limited companies – other business structures such as sole traders and partnerships can also use trading names.
What are the rules for trading names?
There are certain rules pertaining to the use of business names, including:
- Trading names must not include ‘limited’, ‘Ltd’, ‘limited liability partnership, ‘LLP’, ‘public limited company’ or ‘plc’
- They cannot contain any ‘sensitive’ words or expressions – unless permission is obtained
- If it is too similar to the trading name of a similar business (e.g. a competitor), this could lead to accusations of ‘passing off’
- A trading name should not be too similar to a trademark
As mentioned previously, the name of the limited company should be included on all company documents in addition to the trading name. This includes business letters, order forms, and websites.
What are the benefits of running two or more businesses under one company?
Various different related goods and services can be provided by a single company. However, if a business decides to significantly diversify, it will often make more sense to trade the diversified component under a different name.
This can help with brand building so that the different product lines are associated with specific trading names. For example, Bristol Green Hammocks Ltd may find that its company name helps them to sell green hammocks to customers in Bristol, but it could put them at a disadvantage when trying to sell blue tents to customers in Newcastle.
Running multiple businesses under one company instead of incorporating new companies to run individual businesses will have the benefit of saving time and money on company secretarial work, such as maintaining statutory registers, and also annual filings such as Confirmation Statements and annual accounts.
Multiple limited companies
Another option, rather than running multiple businesses using trading names, is to register multiple companies which then become subsidiaries of the parent company. If the companies are genuinely different businesses, this may help to ring-fence certain liabilities if one company finds itself in financial difficulties.
It can also help to secure investment or sell a particular venture further down the line. However, maintaining multiple limited companies requires a lot more administration and accounting, which may outweigh any benefit for smaller businesses with relatively straightforward tax affairs.
So it means running all multiple businesses under one Limited and Liability companies together
Thank you for your comment, Will. Yes, you’re right – you would run two or more separate businesses under a single limited company.
Kind regards,
The QCF Team
Hi,
I run a online retail company selling Learning resources for young children which is a limited company. I now want to set up a business consultancy service. Is it wise to set the new consultancy service up as a sole trader income or combine it with the profits of the limited company. A key point to consider is that I will be remortgaging next year so i would like the profits from the new business to be considered and I am not sure how this will impact me. I want to ensure the set up will allow me the maximum borrowing when it comes to a mortgage review. thanks xx
Thank you for your kind enquiry, Jo.
Unfortunately we are unable to advise on this subject. We would recommend you contact a mortgage broker for advice, as they will be able to assist you in finding out the optimal method of receiving income to allow you to set up the maximum amount of borrowing for your mortgage, when the time comes.
We’re sorry we could not be of more assistance.
Kind regards,
The QCF Team
Hi, we have a Limited company, and want to run a trading name for a different division. Do we need to register that name on companies house to stop anyone getting it in the future, even though ours won’t be a limited company?
Also, would we need separate Public Liability insurance for the trading name or is it covered under the original company?
Thanks
Thank you for your kind enquiry, Ben.
Forming a limited company protects another limited company name of the same name being used. However, trading names are still open to being used by other businesses if they are not trade marked, as long as the other business cannot be accused of ‘passing off’ – that is, trying to mislead consumers into thinking their business is the same as your business – i.e. stealing goodwill.
If you are concerned about your trading name being used by others, we would recommend looking into registering it as a trade mark. You can read more about trade marks here: https://www.qualitycompanyformations.co.uk/blog/what-does-a-trade-mark-protect/
We trust this information is of use to you.
Kind regards,
The QCF Team
Hello. I am new to having a Limited Company. I recently started a healthcare-related limited company, with help of QCF. However, I am planning to start up another business here in the UK which has completely different nature of business. Can I use the same Ltd Co that I opened with QCF? Maybe under a different trading name? If yes, how do I setup a trading name? Thank you.
Thank you for your kind enquiry, Kay.
It is perfectly possible to have two separate businesses carrying out different activities under the same limited company name. We would recommend updating your company’s Standard Industrial Classification (SIC) codes via a confirmation to include the new business activity, if your SIC codes do not already include this.
With regards to setting up a trading name, we would recommend you check that the trading name you wish to use is not trade marked. If this is not the case, you should be able to use it without any other further set up required. Please remember that if creating a website, stationery etc – for your business under its trading name, you will still need to display the company’s registered office address as well.
We trust this information is of use. If you have any further questions, please do not hesitate to ask.
Kind regards,
The QCF Team
Hello Everyone,
I need help
I have already running business and I would like to open up another store under the same company so do I need to register new store to company house / open new bank account or I don’t need to ??
If YES / NOT either way suggest me which is batter way to do it save time and money
Pls help me and reply me
Thank you for getting in touch.
In general terms, there is no reason why opening another store under the same name should mean you need to register with Companies House.
Indeed, we’re not aware of anything in the Companies Act 2006 which strictly limits the number of businesses that can be carried out under one company.
We would of course suggest you seek professional advice as regards structuring your business as there may be other considerations to account for (namely tax and accounting).
Kind regards,
The QCF Team
Does having different trade names protect each businesses’ assets of one company were to get in financial
or legal issues?
Thank you for your kind enquiry, Jose.
In general terms, the answer is no – if two different trading names are under one limited company, as trading names offer no legal distinction.
We trust this information is of use to you.
Kind regards,
Hi,
Thank you for a great article. As a doctor you can work through a limited compny if you are doing locum type shifts (self-employed). I want to have a property limited company also, but I hear that you pay tax if you transfer money between 2 limited companies. Could I use the same limited company to do locum doctor work as the one where I buy properties and also not pay any extra tax to do so? (I know I’ll pay the 19% corporation tax from working but I don’t want to pay any more tax before the money goes in to a property if that makes sense). So essentially would operating under 1 limited company for both these things prevent that transfering tax I mentioned earlier and would it be possible? Thanks
Thank you for the question.
From a company secretarial perspective, there is no limit to how many businesses/activities you operate from a single entity. We would take caution, however, as there may be restrictions imposed on you elsewhere – for example, perhaps your own regulatory bodies have certain requirements in regards to the entity through which you carry out your locum work (this is unfortunately not something we can assist on).
We would suggest you seek professional advice as to how you structure this.
We hope that helps!
Kind regards,
The QCF Team
I do have a limited company and I would like to open a new trading name under that company. how do I do it and how does the insurance that is all named on my main company covers my new business?
Thanks for the question!
To use a trading name we recommend checking the Companies House register and trade mark database to ensure that the name isn’t too similar to one already being used.
We also suggest telling HMRC and your bank about the trading name. This is to make sure you don’t experience any tax/payment issues.
Unfortunately, we can’t advise on the insurance aspect of this question.
We hope that helps!
Regards,
The QCF Team
Is it possible to run multiple businesses under one register name
Thank you for your kind enquiry, Teeh.
It is possible to run multiple businesses with different business activities under one registered limited company name. We recommend you ensure that your company has accurate Standard Industrial Classification (SIC) codes when doing this, so you do not compromise your ability to obtain insurance or credit.
For more information on SIC codes, please see this blog: https://www.qualitycompanyformations.co.uk/blog/choosing-sic-code-limited-company/
We trust this information is of use to you.
Kind regards,
The QCF Team
Hello, I have a limited company which is registered under retail online sales in health and beauty. I just need a little clarification so i would like to open another business under this same ltd company but its a totally different business it will be a forex trading business. can i still register my forex trading business under my current limited company or do i have to get another ltd company for this business? if i can how do i go about the procedure with companies house moving forward ?
Thank you
Thank you for your kind enquiry, Sharon.
Two independent businesses can run under one limited company name – there is no limitation regarding this.
We would recommend you ensure the Standard Industrial Classification (SIC) codes for the company correctly represent the business activities of the limited company, as incorrect SIC codes may prevent your limited company from obtaining credit, etc. For more information relating to SIC codes, please see our blog on this subject here: https://www.qualitycompanyformations.co.uk/blog/choosing-sic-code-limited-company/
To update your SIC codes, you will need to file a Confirmation Statement. We can do this for you if you wish, at the cost of £34.99 + VAT. See here for more information: https://www.qualitycompanyformations.co.uk/services/confirmation-statement/
We would recommend considering you are doing Forex trading, that you ensure you have the correct authorisations from any relevant body to be able to do so, if relevant – as this may prevent you from using a limited company which has a separate business activity to Forex trading.
We trust this information is of use to you.
Regards,
The QCF Team
I would like to open a business part of of an existing limited company with 50% shared ownership in different city under the same trading name which provides smilers service. The remaining 50 % shares will be owned by the owner of the existing company. However, I would like all affaires, eg : bank account, profits and lose, account etc of our business to be separated from the existing company. I would appreciate your advice about any possible way( ie opening our business as a branch, franchise or subsidiary) to achieve this. Thank you
Thank you for your kind enquiry, Christine.
There are a number of ways that this business could be structured.
Whilst we couldn’t advise on the best structure for you, one option may be to set up a new company. The company might then be owned 50% of your existing limited company and 50% by the owner of the existing company in the new city. This company could then have its own bank account, as well as its own contracts and assets.
Given the nature of this sort of set up, we would of course highly recommend you seek specific legal, tax and accounting advice with respect to this.
We trust this information is of use to you.
Regards,
The QCF Team
Hi,
We have a limited company and we are currently developing two independent online stores that will focus on different niches. Both stores will operate under our single LTD company, which will be invoiced by our suppliers. I understand that both stores/websites will have to include our LTD name, registered address etc.
However, my questions is, whether we need to provide our trading names to suppliers from each niche, as they will be different for different products.
So, as an example:
We order Product 1 for Store A from a supplier ABC.
We also order Product 2 for Store B from a supplier XYZ.
Can we just use our LTD company name for invoice purposes or is it mandatory to include each respective trading name (Store A or Store B), depending which one will be selling the product?
Thank you in advance.
Thank you for your kind enquiry.
There is no legislation forcing a company to cite a ‘trading name’ for the purposes of invoices. The limited company name can be the only name cited on invoices given the scenario you have described, if you wish.
We trust this information is useful.
Regards,
The QCF Team
I’ve plans to set up 4 different businesses covering different industries and although they will have their own names can I still trade up one main company?
Is it started to have all the companies as Limited or just the main one?
If the main company is not directly selling or providing services would there be any financial responsibility there. Would the company’s under it be responsibility for their own financial books
Thank you for your kind enquiry, Ray.
It is quite possible to set up 4 different businesses in different industries under one limited company. We would recommend having one SIC code for each of the 4 different business activities.
An alternative structure would be 4 different limited companies (one for each different business) and a 5th holding company which owns 100% of shares in each of the 4 limited companies. The downside of this will be that you would have to prepare four sets of annual accounts and 5 confirmation statements, instead of one.
Directors of a limited company are legally responsible for ensuring annual accounts are filed correctly. It will not matter which of the four businesses within the company is dominant – the limited company will have to file one set of annual accounts as a whole.
We trust this information is of use to you.
Regards,
The QCF Team
Thank you for an extremely informative article.
Similar to the previous poster, I’m running a limited company in the education industry, and am also planning to do business in another industry (furniture making) using skills I’ve acquired during the pandemic.
My education business is currently making a profit. The furniture business would require some investment in equipment and training before turning a profit, and would likely make a loss in its first year or two.
If both are run under the same limited company, could the loss from setting up the furniture business be offset against the profits from the education business for corporation tax, for example by claiming capital allowance for equipment or training expenses?
Many thanks!
Thank you for your kind enquiry, Steve.
In general terms – what you have proposed is perfectly acceptable, as for all intents and purposes, you are operating one limited company. There is no restriction on the number of activities one limited company can take part in, and the revenue and costs of the two business activities within the one limited company will be deemed as the same.
As a result, you can offset the profits from the education business activity against the losses of the other business activity.
We trust this information is of use to you.
Regards,
The QCF Team
Hi.
I have several Ltd. Companies products linked separately under Art .subjects.
I would like to group them together as Trading As under my name ongoing.
Please clarify how to go about this they are all start ups in the first year of trading.
Do I keep registered addresses and trading address separate for each Ltd. Company or do they become 1 Combined address set for all Ltd. Companies concerned.
Please advise.
Thank you for your kind enquiry, Jeannette.
Whilst there is no definition under the Companies Act 2006 as to what a “group” of companies is, the Act does define what a “parent company” is. A parent company is, among other possible criteria, a company which holds more than 50% of the voting rights in another company (oftentimes this will simply mean holding more than 50% of the shares in the). That ‘other company’ would be considered the subsidiary of the parent company.
From a company secretarial perspective, you might then look for a company (be it one of the existing limited companies you have formed, or a new dedicated holding company) to become the parent of your other limited companies. The various companies, now with a common owner, would then also trade under the same name as each other.
For the avoidance of doubt, the various companies do not necessarily need to have the same registered office address or even the same trading address. This is because a limited company’s ownership is not dictated to the address they are registered at or trade at.
As always, when considering company structures, we would recommend you seek professional advice, as there will be legal, tax, and accounting considerations to take into account.
We trust this information is of use to you.
Regards,
The QCF Team
I currently am a director of a limited company for events organising. Due to the pandemic I have picked up new skills and would now like to use my limited company for a courier business.
I have a new trading name I would like to trademark also.
Would it be possible to transfer the type of business the company trades and also trademark a new trading name if it is similar to the name of the ltd company?
Thank you for your kind enquiry, Ayo.
Limited companies are required to provide between one and four Standard Industrial Classification (SIC) codes to Companies House at all times, which cite the business activities of the company. However, these codes mainly affect government reporting and the company’s ability to obtain credit, and are not legal restrictions on the type of business the company trades in.
Therefore it is perfectly possible for a limited company to have two trading names and carry out two completely separate business activities.
With regards to your question about trademarks, the scenario you describe should not have any impact on whether you are able to obtain a trademark.
We trust this information is of use to you. Should you require further assistance, please do not hesitate to leave a follow up comment.
Regards,
The QCF Team
Thank you for this really straightforward and informative breakdown. It has made it really easy for me to understand what I have so often found confusing.
I was wondering wether it matters that I aim to have two of my trade names under one limited company and eventually have one of those trading names convert from a profit based to non profit based. Are there any implication or obstacles I should be aware of in doing this?
Thank you for your kind enquiry, Tisha.
In general terms, it is not possible to convert a limited by shares company (usually used for ‘for profit’ companies) to a limited by guarantee company (usually used for ‘not for profit’ companies) directly, as there is no legal mechanism in the Companies Act 2006 to allow this. To effect this change, you will need to close your limited by shares for profit company and open a new limited by guarantee company.
Your other option is to open another limited by shares company; however, you will need to ensure the articles of association enable the restriction of profit distribution, and shareholder agreements also prohibiting profit distribution will also need to be in place.
The easiest way to do this will be to have a limited by guarantee company as these are mainly designed for not for profit purposes. We can assist you in the formation of this company if you so wish.
We trust this information is of use to you.
Regards,
The QCF Team
My colleague and I are two separate businesses looking to take on a business lease together. The landlord has requested the lease be in one business not both. My colleague is a sole trader within a ltd company. Could I join her ltd company as a sole trader and the ltd company be the name on the lease? So we are both under the ltd company? If so, would we both still be responsible for the lease etc or just her as she is the ltd company?
Thank you for your kind enquiry, Emma.
In general terms, unless the lease has requested collateral outside of the scope of the limited company, then it is the limited company which is responsible for the lease. This means that the directors of the limited company, who are legally responsible for the running of the company, are technically responsible for the lease. It does appear from the scenario you describe that you could join the limited company – however, it should be noted that at the point you ‘join’ a limited company in the form of employment, that you are no longer a sole trader, and this may change how you need to be paid (i.e. you may need to be paid via PAYE).
It does appear from the scenario you describe that your solution would satisfy the landlord, however.
I hope this is of use to you. Should you require any further assistance, please do not hesitate to leave a follow up comment.
Regards,
The QCF Team
Hi
I really find your post useful.
I currently creating two separate trading names, which according to your post would fit into under one limited company, I have registered and currently run. My plan is that, in the future, this company would be a Group or Holding, under which the two trading names are subsidiary entities rather than trading names.
How can I go about this? Should I create now entity names under the trading name and the currently limited company a Holding? This will make me have to register 3 companies with the Company House. It will become unmanageable for me and will require efforts for statements and fillings.
Is it possible for me to transform the trading names into separate entities in the future once I have the resources and make the current limited company the Holding Group?
My question is can I make a trading name into an entity subsidiary in the future?
Thank you for your kind enquiry, Mike.
In general terms, it is entirely possible to transform one limited company with two trading names into two limited companies or three limited companies with one being the holding company.
You would need to create the second limited company, identify the assets relating to the trading name within the first limited company, then sell these to the second limited company. You would then need to create the third limited company (‘the holding company’) and then transfer ownership of over 50% of the shares to that holding company.
There are other ways to achieve this, but you would need to speak to an accountant or solicitor to explore other options which may be more tax efficient, based on the size of the first limited company when it was being split up.
Should you require any further assistance, please do not hesitate to leave another comment.
Regards,
The QCF Team
Good Morning Graeme,
We own a business in one town (the town is named in the limited company name along with the product we sell), we are wanting to open another business in another town and have that town name in the new business with the product that is a totally unrelated product, can this be done under the one company? Would the signage for the new business have to state the ltd company name with t/a and the new company name, and would the new company be able to be limited?? eg (bob the builder ltd T/A billy the butcher ltd) Thank you
Thank you for your kind enquiry, Kim.
It is not possible to have two businesses with the name ‘limited’ in the one company. This is because each limited company is its own separate legal entity, and it is illegal to put ‘limited’ in a business name if the company is not a limited company.
From the scenario you have provided, you have two options.
1. You can create two separate limited companies – one for each town. This will enable you to list on your website, stationery etc, the correct limited company name for the correct town. It should be noted that it is mandatory for a limited company to display its limited company name on websites, stationery, etc. If you create two separate limited companies in this manner, it may be difficult for you to show outsiders that the business group is larger than each entity on its own. Many companies choose to create a ‘holding’ company which sits above the other two limited companies and is a limited company in its own right, to enable outside investors etc to make sense of the business group swiftly.
2. Another option is to only have one limited company, and have the two businesses running under that one limited company. Given they are in two geographical locations, you may wish to change the limited company name to a more generic name so it is not linked to a specific location. Within this limited company you could then have two independent ‘trading names/trading styles’, which would be the business names linked to each location. You could then report the revenue and costs for both businesses together in the same annual return, therefore reducing administration time and eliminating the need to operate 3 limited companies with a holding company. The only stipulation, as mentioned above, is that the limited company name must be displayed on stationery and on websites, etc. It is not mandatory for a limited company name to be displayed on ‘signage’ per se, and you could just have your trading names on the signage, for marketing purposes.
I trust this information is of use to you.
If you require any further clarification, please do not hesitate to leave a follow up comment.
Kind regards,
Nicholas
Hi,
Can a parent limited company have different company directors to the company’s that fall below them? I run a kitchen installation company and I’m the sole director. We are soon to open a showroom and the existing company will subcontract to the new company to install them. We want to keep the company’s separate as there will be 3 new directors for the company we set up to supply them and keep the fitting side separate as the original director owns that side. We need to work togeather tho so we hit the turn over target to supply 0% finance. What is the best way to have 2 company’s run under one but with different directors? Is it possible? Would there be two separate tax returns?
If you could advise please.
Thank you
Thank you for your kind enquiry, Jack.
In general terms, the only way to have two companies run under one with different directors is to have two separate entities. The best way to do this is for one to be a parent company and one to be a subsidiary. The example you have cited as fine; there are no issues with having different directors in a parent company and a subsidiary company and this is indeed fairly common.
Each separate legal entity (i.e. limited company) would be required to complete a Corporation Tax return.
I trust this information is of use to you.
Regards,
Nicholas
Hi there,
I have a question about my case.
I’m opening the store in the building where two other companies are selling different goods. We want to avoid paying additional business rates and for the local authorities we still want to appear as a one company but we want have our signs and logos since we meet different clients and have various branding campaigns.
How we can do that technically, would you min advising me on that?
Many thanks!
Thank you for your kind enquiry, Blazej.
In general terms, it is perfectly legal to operate two separate ‘businesses’ doing different things and with different branding logos and trading names, as long as you make clear on websites, stationery etc the name of the limited company they come under.
This should enable you to only pay one set of business rates, as long as you only have one location.
I trust this information is of use to you.
Kind regards,
Nicholas
Hi we are a Ltd company over the vat tax threshold, would it be prudent for us to
Create a side line company, not Ltd to bring both companies under the threshold?
the non Ltd company would use our materials and labour, which I assume we can
Invoice the cost over.
Is this allowed and more importantly, legal?
Thank you
Thank you for your kind enquiry, Jackie.
The scenario you described may be described as tax evasion for the purpose of avoiding your VAT tax obligations. We would suggest you seek advice from a professional such as an accountant.
With regards to avoiding VAT, we would suggest you may wish to read our blog relating to the benefits of VAT registration: https://www.qualitycompanyformations.co.uk/blog/the-benefits-of-vat-registration/
In general terms, we recommend most limited companies register for VAT as it shows suppliers, customers and business partners that the company is of a substantial size, and therefore makes dealing with all three parties smoother and makes your company look larger and more attractive to them.
I trust this information is of use to you.
Regards,
Nicholas
I was employed by a company which was infact a trading name of a limited company. I have had to issue (and won) court proceedings for non payment of wages and the limited company has subsequently been liquidated. I am now left with a useless court order as the limited company has been liquidated…
My first question is -is it even Legal to liquidate a company when there is an outstanding court order. And secondly if I was working for the separate company -with the trading name – is that just the director ‘trading as’ and I can therefore go to her directly for my payment ?
There is no mention on companies house of the trading company been linked to the limited company
Thank you for your enquiry Lily.
In the first instance, we cannot give legal advice on specific matters and I would recommend you seek assistance from a solicitor.
In general terms, liquidation for insolvent companies who are unable to pay their outstanding liabilities is common practice. All creditors are usually sent a notice of liquidation proceedings commencing. There is usually a strict order of priority as to who gets paid with the available funds.
With regards to your second question – trading names are normally used for marketing purposes only and they do not employ people or enter into contracts. I do not feel I am in a position to comment further on this point, as this is a matter of employment law. With regards Companies House, it is not a statutory requirement to register trading names and so you will no record of a trading name on the public register.
I am sorry I cannot assist you further.
Kind regards,
Nicholas
Hi there,
I’ve been looking for an answer to my situation but it’s quite specific so I’ve found it hard to find relevant information. I was wondering if you could help me answer my question. I have a registered food business. It’s a home bakery. And I am looking to source and sell baking products on Amazon. Since my current business is registered as a food business can I still sell non food items with this business? Or should I register a new business? Many thanks.
Thank you for your kind enquiry.
In relation to whether your limited company is allowed to carry out more activities than have been designated for that limited company, the answer in general terms is yes, you can sell non food items within your limited company, even if you have designated your limited company’s business activities as a food business. There is no legal stipulation blocking you from doing this.
I trust this information is of use to you.
Regards,
Nicholas
Looking at Advance Northumberland it’s supposed to be owned by Northumberland county council. Who also apparently own ascent homes who is also under the same address as advance in ashington. But there is no filling for a ascent homes. So no break down of how to stands financially.
Advance have filings which seem to be on a loss. There also seems to be a lot of resignations lots of new directors and money loss but money paid to the directors. Online it says they are owned by Northumberland county council
But are limited companies.what are they doing with the tax payers money.
Can you make sense of what’s going on?
https://find-and-update.company-information.service.gov.uk/company/07497567
Thank you for your kind enquiry, Mrs Wilkinson.
From first glance it does not appear that anything illegal is going on with regards these companies – they are perfectly entitled to operate the businesses in this way. Whether they should be doing it from an ethical or political standpoint is something we unfortunately cannot comment.
I am sorry we cannot be of more help in this instance.
Regards,
Nicholas
Hi if a local council wholly ownes a branch off company which is in a different name and is limited, then also owns another branch off company under diff name and isnalso ltd should they all have separate tax returns!
Looking at tax returns at company’s house the council first branch off Company has tax returns that mentions the 3rd company vaguely in its returns but break down. When they have been on a loss over 4m over the last 3/4 years should the directors be giving themselves dividends of £170k when it’s th tax payers money that’s been used to fund the whole thing?
It’s strange councils are running private limited companies
Thank you for your kind comment, Elise.
In general terms, it is legally possible to own limited companies and therefore have separate tax returns. In relation to the ethics or politics of whether this is right or whether there is something underhand going on in this situation, unfortunately we are unable to comment.
Regards,
Nicholas
Hello,
My wife and I are currently established as sole traders. Small background, I work in security consultant she is a make up artist. We work from largely and also visit clients at their locations. From my understanding we could trade under a ltd company for example using our initials (eg T&J ltd) but keep our trading names?
Thank you for your kind enquiry, Ryan.
You are correct that in general terms, based on the information you have provided, you can both keep your trading name and trade under the one limited company name. It is important that you ensure stationery, websites, invoices etc state the limited company name and what your trading style is.
I trust this information is of use to you.
Kind regards,
Nicholas
Just found your site and finding some really helpful info and answers already.
My question if you can help is, If you do set up two individual T/A business’s under your Ltd Company name should you then run two separate bank accounts to keep good financial records for each individual business?
Thank you for your kind enquiry, Neil.
In general terms, there is no legal requirement to maintain two separate bank accounts to keep each trading style’s finances in good order. However, if you are attempting to work out the costs or revenue of each trading style for a particular reason (e.g. for management accounts purposes), then two separate bank accounts would be a good idea.
I trust this information is of use to you.
Regards,
Nicholas
Hi.
Happy new year and I hope you are all safe!
I own a limited construction company that is registered on company house etc etc.
I also have a go daddy account that sells a product online but isn’t “registered”
I sell online and it has the option for the public to pay into a stripe account which is then transferred to my construction bank account. is that ok to do?
Thank you for your kind enquiry, Dan.
In general terms, there is no legal restriction in pushing money from one unregistered business into the bank account of a legal entity, such as your limited company. However, if you have any webpages, email signatures or stationery associated with your Go Daddy account (business), you should state that this company is a trading style of your limited company name in the footer of your webpages, email signatures or stationery, as this is a legal requirement.
I trust this information is of use to you.
Kind regards,
Nicholas
Hi, If I had a 3 limited companies and had the same trading name with it all notified in contracts, websites etc. Would that be possible?
Hi Vivian,
Thank you for your kind enquiry. There are no restrictions on a trading name being used by multiple entities (limited companies), if the companies are owned by the same person/persons. Therefore you can do what you have described without any negative ramifications.
Regards,
Nicholas
If a owner of a company has 2 businesses, do the staff of company a) have to work for company b) when they work on site at company a) ? And if they refuse the work, is it possible to receive disciplinary? No contract for the company b) and no extra payments.
Thank you for your kind enquiry, Ruby.
If I understand the question correctly, you are asking if the employees of your company can be forced to work for either of the two businesses. This will be dependent on their employment contract and what is cited therein – if they are breaching what is specifically written in them – and you have outlined a disciplinary procedure within your employment contract or Company Handbook, then you will be able to action a disciplinary against them if they refuse to work as per their contract, and as long as their contract does not contradict employment law in the UK.
I trust this information is of use to you. If you require any further clarification, just leave another comment and we’ll be glad to help further.
Regards,
Nicholas
Hi really good post and good comments would just like to confirm my understanding of the post/comments.
I already have a private limited company trading and want to add on another division to the existing company.
I would obviously like the business names to be similar but am i right in think the name can be similar as long as theres no Ltd or limited in the name ie
Mark Smith Limited is the current registered company and I would like to add the division Mark Smith Makes so this can be done as long as all documentation used relates to the registered company.
if the above is correct im completing an SSP application and the question asks whats the relationship details to my current company
Immediate parent company
ultimate parent company
company i currently own
company i have common director or partner
what would be the answer?
Thank you for your kind enquiry, Mark.
In general terms, there are no restrictions using business names (trading names) which are not incorporated as limited companies at Companies House. The only thing to be mindful of is that you are not using the company name to carry out something which could be considered ‘Passing Off’ – that is, that there isn’t another company called Mark Smith Makes doing the same thing in the same location and that you could not be accused of passing yourself off as that other business and stealing their goodwill.
With regards to the question relating to the company ownership for the SSP application, as the new business is part of a limited company you own, the answer would be ‘company I currently own’.
The top two answers relating to parent companies are only relevant if both businesses were limited companies and one company owned the other company.
I trust this information is of use to you.
Regards,
Nicholas
Hi Graeme,
Thanks for the interesting article. How about expenses and statements in the case when we have two or three separate businesses under one LTD?
Can we use money generated by company X to finance company Z?
Do we need to prepare different accounts for each?
Finally, one of our companies provides automotive consulting (reports, intelligence, research) while the other one treasury consulting. Since both are consulting businesses is acceptable to treat them as one company without any divisions?
Thanks,
Mariola
Thank you for your kind enquiry, Mariola.
In general terms, only one set of accounts is required for a single limited company, even if two completely different business types run inside this limited company. Therefore, money for business X can be used to finance business Z if they are both under the same limited company. This is also the case when reporting the company as one company without any divisions, even if the two businesses within this limited company run in completely different spheres.
I trust this information is of use to you.
Regards,
Nicholas
Hello Graeme / Nicholas,
I wonder if you may kindly assist me.
I have Company “X” which has been trading for 3 or so years which I own 50% shares with Mr A.
I am soon to register a new Company “Y” which I own 65% shares in with a Mr B. I would like Company “Y” to trade under Company “X” name. Mr A & Mr B have agreed to this. However does this affect any shares / liabilities etc given they will be ultimately two different companies just trading names will be the same.
Is this possible in anyway?
Many thanks in advance.
Thank you for your kind enquiry, Mr Whyte.
In general terms – trading names are only affected in law when it comes to passing off action – whereby one company uses the trading name of another and effectively pretends to be that company, thereby trading off the other company’s goodwill. As you have a controlling interest in Company Y, and have 50% of shares in Company X and the consent of the only other shareholder, it would appear the chances of passing off action being taken by Company X over Company Y using its trading name are virtually nil, and so it is fine to proceed.
With regards to your query regarding any effect on shares or liabilities – there should not be any.
I trust this information is of use to you.
Kind regards,
Nicholas
Hi Nicholas
My question is do I need to have a company for all my businesses because I own and running all the businesses I need to say as a businessman do I need a limited company or just a business as a limited company I need to buy 4 different contracts to controlling all more business assets I got to till you on would you advice me to print me 4 different takeovers agreements I’m now employing and hiring into businesses I got within the company permission
Thank you for your kind enquiry, Colin.
You are legally allowed to have all 4 businesses under one limited company; however, it is not a legal requirement to do so. If you are based in the Republic of Ireland as you have stated in previous correspondence, unfortunately we would be unable to advise on this jurisdiction as we can only advise on United Kingdom company law.
I hope this information is of use to you.
Kind regards,
Nicholas
Hi Nicholas
Thank you for your message I have
Emailed the company house and we come up with business ideas I can operate all the business upcoming employments
I can take on my own employees
to join the groups I have already started I own and run everything in
The limited company business and fall ownership in the assets in getting from is one of my
Employee in Ireland
Thank you for your update Colin.
We wish you the best of luck with your new business.
Kind regards,
Nicholas
Good morning Nicholas
My enquiring is if I am doing all businesses under one company can I choose or do you have to choice for me what company I should have I was wondering to startup two different companies like Limited liability company or Limited company taking on employees for the company employment I own and run a employment group I want fall ownership within all businesses I want to buy all the leases and properties in Ireland
Hi Colin,
The choice you should make is based on a commercial decision as opposed to a legal one. It is perfectly possible to have two businesses doing completely different activities running under one limited company – the benefits of this include a decrease in administration costs and accountancy fees for the filing requirements of the company, as well as the projection of size of two companies being grouped into one.
However, if the incorporation of two businesses into one limited company will cause confusion for investors, business partners or potential customers due to the differing nature of these activities, you may wish to form two limited companies instead (one for each business), and then form a third limited company which would own a controlling number of shares in the other two businesses, therefore making it a holding company. This would provide you with the benefit of size for outside viewing without the confusion caused by the differing activities.
I trust this information is of use to you.
Kind regards,
Nicholas
Hi Guys
Thank you fir a great site.
My quesrion is this.
I’m a limited company, my work is railway contracting. I have no other employees or directors etc.
I have been offered the chance to take over my local pub.
Which I would employ staff can I use my limited company for both and the sane business account
Thank you for your kind enquiry, James.
There is nothing legally stopping you from running both your railway contracting business and your local public house business through one limited company and using the same business bank account for both.
However, you should be aware that you may find it difficult to allocate costs and revenue to either of these businesses should you require to do so for any reason in future – for instance, if the public house was to receive outside investment and an investor was auditing this. It should also be noted that banks may look less well on a company with two disparate business activities when it comes to lending money to the limited company in future – they are likely to perceive this as more risky as the more logical thing to do is to have two separate limited companies, one for each business venture.
I trust this information is of use to you.
Kind regards,
Nicholas
Kind regards,
Hi
Regarding to my massage I would like to know if am I in the Limited Liability company so I made my decision what I’m going to do
I want 4 DBAs and two LLCs I love to be very very busy for all my businesses interests
On Christmas Day I’m having a new phone for business
As well I want 100 percent fall ownership of all the businesses and other business interests I got two different properties in Ireland
Please can Nicholas to get the purpose of the takeover agreement if it’s allowed to your permission please
Thank you for your query, Colin.
Please contact our Company Secretarial Team on 020 3984 5389, and they will be happy to assist you with a request of this nature. Unfortunately due to privacy, we would not want to discuss this with you on a public forum in case any private information about yourself was exposed to the public.
Kind regards,
Nicholas
Hi Team,
Hope you are fine.
I have question regarding add two more business under one company which I opened last year (Sep-2019).
Current Company: XXXX Limited (Profession: Cab services) (Expected turn over £20000 to £40000)
I want to sell on ebay/amazon via company and I want to provide bookkeeping services.
Can I add this two businesses under one current company?
Could you please advise?
Thanks
Y Gohar
Thank you for your kind enquiry. There is no limit to the activities of the two businesses you have described operating under one limited company.
I hope this information is of use to you.
Kind regards,
Nicholas
Can you use a trading name that is similar to a Limited company that already exists if it is for a totally different sector/service?
Hi Emily,
Thank you for your kind enquiry. You should be able to use a trading name which is similar to a ltd company which already exists, as long as it cannot be seen that you are passing off your business as the other limited company. However, this could be problematic if the other company is particularly large – such as a ‘household name’ company – as ordinarily very large companies may threaten any company using their company name as a trading name with passing off action civil law action via their solicitors. Passing off is can be subjective and often a judge is required to decide in contentious examples.
I hope this is of use to you.
Kind regards,
Nicholas
Hi Nicolas
To let you know that I have changed my mind about having a holding company so I changed it to Limited and Liabilities Company as my own business I need you to get me the ownership of the company business to start this if you can help me
Thank you for your kind enquiry, Colin.
We can certainly help you with creating a company with full ownership rights for yourself. Please call 020 3908 0044 and our team of company experts will be able to assist you. Alternatively, please use the live chat function on our website to speak to our team.
Kind regards,
Nicholas
Hi Nicolas
My require is I’m starting to do cash in hand for all the businesses for my Limited Liability company on all business vulnerable businesses to support my businesses
I’m choosing 2 LLCs with 4 DBAS
Doing all other businesses owning and running all my business interests and business assets
Thank you for your kind enquiry, Colin.
Please call us on 020 3908 0044, send us a live chat message, or send an email to [email protected], and we will be happy to assist you with your requirements. We would suggest this topic is better discussed with us in private, rather than on a public forum.
Kind regards,
Nicholas
Hi
I want to change to Limited company for all my businesses and I want to know if you could do help me with this company business as a Limited company
Thank you for your kind enquiry, Colin.
If you call 020 3908 0044, our team of company experts will be able to assist you. Alternatively, please use the live chat function on our website to speak to our team.
Kind regards,
Nicholas
Hi
My Require is do I still have dat holding company I own and run my own is it Classed as limited company
My require is
As a businessman does it mean it’s my own and run by myself
Hi Colin,
Thank you for your follow up enquiry.
A holding company is classed as a limited company. You can see more information relating to holding companies in our blog here: https://www.qualitycompanyformations.co.uk/blog/benefits-holding-company/
If this blog does not answer your question, please let us know and we will endeavour to assist you.
Kind regards,
Nicholas
Hi Nicholas
Am I now in a Limited and Liabilities company or a holding company because I need to understand on i want to understand does a businessman or an employer of my own and run a company business
Thank you for your kind enquiry, Colin.
Two businesses can run under one limited company without a holding company being required. If one limited company has one or two businesses within it which are fully trading, this company is not a holding company. A holding company would be used if you had two businesses running under two limited companies and you had a holding company with controlling ownership in each of these two limited liability companies. If you are a businessman or employ yourself and you have two businesses under one limited company, this limited company is simply an active trading limited company, not a holding company.
I trust this information clears this up for you.
Kind regards,
Nicholas
I am looking to have couple of business which deal with different things. Would it be best to have the different trading companies under on registered company or register different companies for each business? What are the financial benefits if any for both? Aside from registering the different companies are there additional costs?
Thank you for your kind enquiry, Shane.
It is perfectly legal to have one limited company which carries out two totally different business activities. Ordinarily, at least one of the businesses would have a ‘trading name’ which would differ from the legal name of the company. Any businesses which use a trading name would need to put the trading name and registered company name on letterheads, website etc. Unfortunately we cannot answer what is the best idea for your business, as each case is unique.
Regarding the financial benefits, the main financial benefit will be that you will only need to prepare one set of financial accounts instead of two (an accountant usually costs between £750 to £1,000 per annum) and file one confirmation statement per year instead of two. The other major benefit is that one limited company with both business activities would be easier to understand and show greater size than two independent companies which are not linked; this could make it easier to attract business partners or investors.
I trust this information is of use to you.
Kind regards,
Nicholas
Can I ask – if I have a parent limited company with 3 subsidiaries (limited companies), all registered in England and with the same registered address but with their own respective company numbers, can they appear on one letterhead? Obviously, with any communication being signed off by the respective company? Something like:
The Holding Company Ltd., The Development Company Ltd., The Energy Company Ltd., The Tenant Company Ltd.
Registered in England. Holding company number: 123456789, Development company number: 912345678, Energy company number: 891234567, Housing company number: 789123456,
Registered Office: The House, Along Road, Town, County, United Kingdom, CA12 0SB
Rob
Thank you for your kind enquiry, Robert.
There is nothing within the Companies Act 2006 (the relevant piece of legislation in this instance) preventing you from placing multiple registered company names (i.e. the subsidiary companies as well as the parent company) on the same letterhead.
I trust this information is of use to you.
Regards,
Nicholas
So it means running all multiple businesses under one Limited and Liability companies together
Hi Colin,
Yes, this is a possibility. You may also wish to consider forming a holding company for the same purpose if you wish to run more than two companies within the same group. You can find out more information about holding companies here: https://www.qualitycompanyformations.co.uk/blog/benefits-holding-company/
I hope this information is of assistance.
Regards,
Nicholas
Hi Graeme. I will start a ltd business to sell wedding and event stationery on Etsy marketplace. Thinking in long term, It could have possibility to expand the range of products, like wood engraving, etc. So with just one LTD company can I open new stores on Etsy marketplace with other names to produce and sell different things and use the same bank account, same address for production, etc? And also, do I need to report all this new company names to HRMC as I create new webstores or I just have to do the anual account for the main LTD company with all together as one considering that all the money will be in the same bank account? Thank you.
Thank you for your kind enquiry.
In general terms, it is possible to have many different business activities within the one limited company, and legally speaking, there is no limit for most types of business activity. We would suggest you should research the Terms and Conditions of the Etsy website prior to proceeding, to ensure that you would not be falling foul of any of their rules using your proposed route to market.
With regards to HMRC, you would only need to report to them once as the limited company.
We trust this information is of use to you.
Regards,
The QCF Team