Limited company with 2 different business functions

grahamor

Hi,

I am wondering if it would be possible to setup a single limited company that enables me to carry out the following work :

- IT Consulting
- Food Services

The end goal would most likely be just the food side of things but i intend on doing some small website jobs while getting the company setup and established.

Would this be possible ? (Excuse my ignorance on this matter )

pedroeibar1

Yes. No problems with doing that provided it is covered in the 'objects' of the newco.

You can have multiple trading names under the one limited company.

Just beware that if one business goes down it can drag the other with it.

I'd put your food business under a limited company, and just set up as a sole trader for the other.

dbran

Hi

Objects clauses are due to be consigned to the history books once the new company law comes in. So in theory no real problems with this.

I would probably keep them separate given that food could be potentially VAT exempt.

dbran

dbran

dbran wrote: »

Hi

Objects clauses are due to be consigned to the history books once the new company law comes in.
dbran

Whats their plan moving forward?

grahamor

dbran wrote: »

Hi

Objects clauses are due to be consigned to the history books once the new company law comes in. So in theory no real problems with this.

I would probably keep them separate given that food could be potentially VAT exempt.

dbran

Thank you. A work colleague mentioned something about limited companies only needing one director. Is this part of the new company law too ?

dbran

Deleted User wrote: »

Whats their plan moving forward?

The plan is that a normal limited company will henceforth have a new constitution which effectively roles the articles and memorandum into one document. This new company constitution will have no object clause. An existing limited company will convert to this new form of company either by electing to do so or if you do nothing, automatically after a transition period of 18 months.

If you want the company to remain constrained in what it can do you can choose to be a Designated Activity Company (DAC). That company will retain an objects clause as before.

Dbran

dbran

grahamor wrote: »

Thank you. A work colleague mentioned something about limited companies only needing one director. Is this part of the new company law too ?

Yes. But you will still need a company secretary and this must be a separate person to the director. You cannot sign as director and secretary. An existing company needs to convert to the new type before this can apply.

dbran

grahamor

Thanks for all the info.

One final question. If i setup a limited company for the food business could i expense a 3 month cooking course as it's company related ? Cost would be about 8k

Would i be better off waiting about 12 months after trading commences before attempting this?

Thanks.

pedroeibar1

dbran wrote: »

Hi

Objects clauses are due to be consigned to the history books once the new company law comes in. So in theory no real problems with this.

dbran

Agreed, but c'mon, dbran, we're talking the 'now', not 2016.
Enactment was anticipated for 2014, but looking at the ineptitude we see currently IMO this Bill will go well into 2015 and there is little chance the Act will commence until at least 6 months later again. Are you holding your breath?:):):)

dbran

Yeah

Its been coming and coming for so long now that I too am a bit fatigued with it now. Latest is that it has passed all stages of the Oireachtas and commencement date will be June 2015. So that will be the earliest you will start to see the new companies. Eight months is a very short horizon in reality. It should really have an affect on any advise that you give even now at this stage.

dbran

dbran

grahamor wrote: »

Thanks for all the info.

One final question. If i setup a limited company for the food business could i expense a 3 month cooking course as it's company related ? Cost would be about 8k

Would i be better off waiting about 12 months after trading commences before attempting this?

Thanks.

Depends on what sort of a course it is. If it is teaching you how to cook then no. You may be entitled to additional tax credits if it is a recognised course.

If it is maintaining existing knowledge then yes.

Dont see any reason why you would want to postpone it especially if you need it to set up the business.

Regards

dbran

pedroeibar1

dbran wrote: »

commencement date will be June 2015. dbran

If I'm around then I will remind you of this!:p I already feel I need to do a refresher course on it!