Just bought a ready made company

Things you must do when you just bought a ready made company from a company formation agent. A ready made company is a limited company incorporated by company formation agents for sale. Generally, people buy a ready made company because they either like the company name or the age of the company.

Preliminary check

Go to Companies House website to check the filing history of the ready-made company you would like to buy. To ensure that the company’s filing is up to date with Companies House and it has never traded since it’s incorporation.

Transfer company ownership and control

Usually, after you bought your ready made company, the company formation agent will transfer the company’s ownership and control to you. They would carry out the following to transfer the company’s ownership and control to you.

Appoint your director and company secretary

Generally, the company formation agent would ask you to provide details of at least one company director to them for your ready made company. They would submit the form AP01 to add a new director to your company. If the new director is you, after the appointment, you would be legally responsible for the company.

Thereafter, you can add more directors or a company secretary if you wish.

Terminate the existing director and company secretary

Subsequently, the company formation agent would terminate the existing director by submitting the form TM01 with Companies House. If there is a company secretary appointed, the appointment will be terminated too using the form TM02.

Shareholders information

Concurrently, you would also be required to give details of the person who will be holding your ready made company shares. Your director can also be the shareholder in this instance. The company formation agent would transfer the ownership of the existing shares to your shareholder. This would be done by filing a confirmation statement.

Company’s principal activity

Normally, a ready-made company’s is registered with a dormant company SIC code. You may let your company formation agent know what would be your company’s principal business activity so that they can update the SIC code for you. Alternatively, If the company formation agent did not change the SIC code, you can change it yourself afterwards. It is very easy to add and remove SIC code when completing your confirmation statement later on.

Registered office address

Let the company formation agent know if you are not going to use their registered office address and you have your own address. They would update the registered office address with Companies House for you.

The person with Significant Control (PSC)

You would be required to provide details of the person with significant control (PSC) of your ready-made company. The agent would submit the form PSC01 to register your PSC details with Companies House. At the same time, they would submit the form PSC07 to remove their PSC from your ready-made company.

Your Company authentication code

Do not forget to ask for your company authentication code from your agent. This code is important when comes to using Companies House web filing service to submit your confirmation statement, company accounts, appoint directors and so on.

Your Unique Tax Reference (UTR) number

Also, ask your agent for the UTR number issued by HM Revenue and Customs (HMRC) for your ready-made company. You need this UTR number when corresponding with HMRC every time.

Why update your company details then submit your confirmation statement

Why update your company details then submit your confirmation statement is to avoid Companies House reject your confirmation statement submission.

Generally, you must check and update the following company information registered with Companies House before you submit your confirmation statement.

  • Ensure that your directors’ personal information is up to date. If there are any new appointment and termination during the last 12 months, relevant companies house forms must be filed.
  • If you have a company secretary, perform a similar check as your company director.
  • Likewise, you would ensure people with significant control (PSC) details are up to date.
  • Don’t forget to update your company’s registered office address and also your service addresses if there were changes within the last 12 months.

The common mistakes were usually people forgot to notify Companies House of changes took place within the company.

For example, a new director was appointed during the year. Legally, you must notify Companies House of this event by submitting the form AP01. Somehow this was forgotten. Subsequently, the new director signed the confirmation statement form and delivered it to Companies House. In this situation, Companies House would reject and return your confirmation statement for amendment.

This type of error is easily oversight especially filing a printed paper confirmation statement.

Normally, you must notify Companies House of a new director appointment within 14 days of the event took place.

Other information you must update while completing your confirmation statement include the following:

PSC04 to change details of the person with significant control

Generally, your company is required to keep and maintain the Register of Person with Significant Control by law. You may use the form PSC04 to change details of the person with significant control with Companies House.

Common examples, if you have recently moved to a new home or you have changed your name by marriage. In these situations, you would require to provide your new home address or new family surname. You must specify the date of the change too.

Change name by marriage

If you have changed your name either by marriage or by law, you must inform Companies House of your new name. You must provide the date of change took place.

Home address same as the service address

If your home address is also your service address, you would require to state that fact. A service address is published on the public register where anyone can see it whereas home address is kept confidential. However, Companies House would not make it obvious to the public if you are to use your home address as your service address.

For this purpose, many people use their company’s registered office address as their service address. Both registered office and service address must not be a P O BOX address.

Update the Register of Person with Significant control

Thereafter, remember to update your Register of the person with significant control.

How to complete PSC04

Contact us If you require help to complete the form PSC04 to change details of the person with significant control with Companies House. Verify your PSC details when completing your Confirmation statement to ensure everything is up to date.

%d bloggers like this: