Time to face facts and shut down

2Daphne2

Hi There

Its a new year and time to do a bit of a clean out :D

I have been running a limited company for over a year now with limited success. Its time to shut it down.

I see some service operators who will do this with a cost of about €300 plus vat (more good money after bad ) Is it an easy process to do that yourself?

Another option for me is to transfer the company to another individual who feels they could make a go of it. How does one transfer shares. I would hope to retain 10% but resign as director. How would I go about that?
Thanks for your help

Alan Shore

Hi,

If your returns are up to date with the CRO and you have cancelled your registration with Revenue then you can apply to the CRO with the required documentation to have the company struck off.
http://www.cro.ie/ena/business-termination-voluntary.aspx

2Daphne2

Thanks Alan

Saw that - looks easy. Can do that myself. I was looking on the CRO site about option 2 - transferring equity to someone else but couldn't see that - is that as easy?

Thanks

Alan Shore

Relatively straight forward as well.
http://www.formacompany.ie/en/shareholders/share-transfers

TheCostumeShop.ie: Ronan

While its easy to transfer the shares you'll need a fairly decent shareholder agreement and contract that makes you no longer responsible if the newbie messes up. Otherwise you might find yourself liable for his debts.

smcgiff

what's the business?

2Daphne2

Hi

Thanks Alan - I had searched for info on the share transfer and not come up with anything - looks a bit more complicated.

Thank you Ronan - good point - the last thing I want is to try and go negotiating with this guy, or indeed writing a document ourselves - need a solicitor - more expense.

I would prefer not to state type of business if okay.

Thanks again

Daphne

dbran

Hi

Striking off the company is not really an option as among other things you will need to certify that the company has ceased trading and has no assets or liabilities, which it clearly does.

If you are going to transfer the shares then, depending on the size of the consideration given (I believe if it is over €1000) then stamp duty is payable on the transfer. There may also be CGT and VAT issues also. So unless this is a very small operation you need to seek professional advise before you decide.

Kind regards



Dbran

2Daphne2

Hi Dbran

Yes, is a small operation, no assets, no liabilities, share value less than €ooo.

So in theory could just shut down. Still will seek professional advice.

Vat is in order.

This morning I got an offer of excellent publicity which would generate interest but fear it would just prolong the inevitable and of being super busy and not making any money.

fiddlesticks......... get off the fence me...... right another few weeks won't hurt me...... will report back :rolleyes:

Thank you

D

Lorelei

1 year is not very long, glad to see that you're going to keep at it. As long as you can hold out financially keep at it for a while more.
I've had my present business now for just over 2 1/2 years now, felt like packing it umpteen times.
Biggest set back having van and 95% of machinery etc stolen just before Christmas. Was definitely going to pack in then orders started pouring in expect to bring in around 5k this month.
And it looks great for rest of years lots of repeat customers.
I recall reading somewhere that it takes around 3 years before a business really starts to move looks to be about right so try and hang of for that 3 year point !!

GOOD LUCK