Discussion in 'Army Pay, Claims & JPA' started by Brandt, Oct 5, 2009.
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I cannot speak for the army side but as for registering a company, we can presume (unless what you are leaving is the cadets ) that you are over 16 and have not got a legal restriction/judgement against you holding a directorship (i.e. you were previously bankrupt, found guilty of fraud etc. failure to comply with companies regulations or failure to pay taxes) in which case companies house will not have an issue.
However, you need to think carefully of the type of registration you go for. e.g. the days of Limited company status protecting your house and personal assets are much diminshed and the protection a lot weaker these days. It may just be inviting more ongoing annual paperwork requirements. Speaking from personal experience on that one.
From a civvy standpoint it was not an issue in the past - probably you are meant to get military permissions etc, but if getting out you probably don't care.
Its worth getting good legal advice when setting out, see it as an investment, but look for a recommendation/reputation - they can best give latest advice and point you at laws you should be aware of.
There's nothing to stop you setting up a ltd company before you leave. Nothing from a legal point of view either.
Agreed. I don't know the circumstances in which you find yourself, but there are a few drawbacks to running a limited liability company. Having run one myself, I would suggest that it helps if you are uncertain of other directors' integrity, but is a drawback in terms of tax and administration. I'd recommend some professional advice.
I'm afraid I cannot help with the 'still serving' bit.
Just do it.
Get cracking. Tax etc lags anyhow
I'd knocked up a Ltd company prior to leaving (and started collecting receipts left right and chelsea)
I kept it while it was profitable from a tax and expenses offset (ie first year) then shelved it a few years later when my tax situation changed
Having said that I was a one man band.
Get a decent accountant and have a chat, not difficult
There's nothing to stop you but there are a couple of points to ponder.
1. Company Office
Your company needs to have a registered office, this is often your solicitor's or accountant's office (you'll have to pay for that) or it can be your house. You are required by law to have a metal plate stating that this is the registered office of ....... and it must be displayed outside your office or building. The Services may not let you register a company at an MQ address.
2. Available Help
There will be plenty of help setting up your business in the area you intend to work. The Government provide plenty of training in how to set up, operate a business as well as stuff like marketing etc. Contact your local Chamber of Commerce or look up Business Link who will advise you on start up courses in your area.
The RBL offer a business loan at exceptionally good rates to ex-servicemen who have been unemployed for a certain amount of time. This isn't means tested and can be in addition to any extra funding you may find. Again Business Link can put you onto grants and loans available to start-up businesses in your area.
You need to thoroughly research your market including opposition and have a good idea of your pros and cons. Make a business plan, it is essential for running your business and without a good business plan you wont be able to raise any funding. Chat to your local banks and find out who offers the best overall deal, banks charge businesses for everything including paying in!
Once you have formed a company there are a lot of legal duties you have to perform including making statutory returns and paying fees. Unless you really need to start a limited company straight away I should wait until you leave. If you are worried about the name you have chosen being taken then you'll have to register or run the risk someone else will think of the name as well and get in first. In that case register it as a non-trading company and change the registration when you start to trade. With domain names it's a good idea to act sooner rather than later but there is nothing to stop you registering a domain before you have formed the company.
Good luck with your enterprise, I really hope it works for you. I run my own business and know just how hard it can be!
A limited company is a separate legal entity, so nothing to stop you creating one.
Whether you need permission to hold shares in it/be a director whilst still in, is another matter. If you have a wife etc then could put all the shares in her name to begin with and then have her 'gift' you them all/part of them after you leave.
Finally it depends on what you intend doing with the company. Tax efficiency wise people draw down dividends from them, however, there is no rule that you have to and the dividend/payments could be deferred until you leave.
Nothing to stop you creating a company, but QRs say that approval is required from MoD PS2a (Army) through the chain of command before accepting a business appointment, including accepting office as a company director. There should be no difficulty at all in obtaining approval for accepting a directorship in a company formed by you with the intention of trading after leaving the service. In fact it would be outrageous if there was any difficulty in those circumstances, but I am accurately summarising the provision in QRs. Alternatively you could arrange things so that you do not yourself become a director until you leave the service; this will depend on your own plans and circumstances. There are additional rules about joining a defence-related business.
You lot are good!
This was exactly what I needed- many thanks.
I have already done quite a bit. Domain names are bought, market research conducted, first year and startup costs predicted, first year turnover predicted, legal agreements being drafted, and the business plan printed. Oh, and absolutely nothing to do with the Army.
I know it is a bit sad, but the business plan was the product of a full estimate, and I now have a plan over time complete with decision points, CONPLANS etc. All I now need is about 6 months full- on effort before the launch, and a bit of luck. Once I set up, you lot will be the first to know.
I have run ahem a few Ltds and never put a brass plate outside my gaffe!
HMRC and Companies House are seperate, rarely talk to each other and find it difficult to communicate in any way!
Our PASO runs his own H&S company so it can't be not allowed as long as it's not interfering with your day to day work
There is really no problem, as long you inform the hierachy (as a matter of courtesy). In addition, as you will be in your last year, it can be considered as pre-release / resettlement.
Separate names with a comma.