Company Constantly Changing Biz Names

flash harry

Hi

Anyone know why a company would constantly change biz names? They seem to dissolve companies after 2-3 years and open practically same company in same location with differing name???

Any reasons I can see - pure curiosity on my part, its a company beside my location.....

Only possibloe reason I can see is they are developing a bad rep under that name (without getting into it its a fairly transient service that would mainly appeal to tourists/passers through)

caesar

Voluntary Liquidation perhaps, for limited companies and their owners (shareholders) liquidation can be used to avoid double capital gains tax in the event of asset disposal. However, there is legislation that prevents companies doing this i.e. liquidating just to avoid double CGT and setting up a similar business doing the same trade in the same area.

flash harry

caesar wrote: »

Voluntary Liquidation perhaps, for limited companies and their owners (shareholders) liquidation can be used to avoid double capital gains tax in the event of asset disposal. However, there is legislation that prevents companies doing this i.e. liquidating just to avoid double CGT and setting up a similar business doing the same trade in the same area.

thanks Caear - I wouldn't have said that they have much capital equipment....

Anyone else?? I am now thinking it must be to do with reputation of name....

TheCostumeShop.ie: Ronan

Changing shareholders would be a good example, when I buy a company I'd usually buy the assets and start a new ltd company. This is to avoid any nasty surprises that the old company has in its closet, for example. an ex employee suing for harassment by the previous management team and now needs compensation. As this didnt take part in the new company the new team would not have their jobs at risk.

They could also be doing this in a scam kind of way - to illustrate a company offers a "lifetime guarantee" on its products in this case sharp knives. Then folds after 5 years. A customer who has the knife for 6 year and notices it starts to get blunt goes back to request a replacement but the company no longer exists. However there could be a new shareholder in its place running a similar business with the same lifetime promise. The lifetime in this case being both the customers and the companies.

I would bet that it is for tax purposes and writing off debts or to dodge legal cases against the company.

Common practice in real estate especially for dodgy agents. The most dodgy agent of them all in Europe who is now finished must have done this about 5 times