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Ltd to Unlimited

  • 02-06-2014 11:18am
    #1
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭


    Does anyone on here know the process involved in changing a limited company to unlimited status. Also any implications to be aware of?

    Thanks

    pedronomix


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    pedronomix wrote: »
    Does anyone on here know the process involved in changing a limited company to unlimited status. Also any implications to be aware of?

    Thanks

    pedronomix

    You mean besides losing the benefit of limited liability??


  • #3
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    barneystinson wrote: »
    You mean besides losing the benefit of limited liability??

    yes, in this case it is a hindrance!!


  • #4
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    pedronomix wrote: »
    yes, in this case it is a hindrance!!

    Why not become a sole trader then?


  • #5
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    barneystinson wrote: »
    Why not become a sole trader then?

    With respect, I looking for answers to the questions posed not advice as to alternatives!! There are multiple shareholders is the short answer to your question!

    Thanks
    Pedronomix


  • #6
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    Apart from the issue of limited liability, the company will require an audit, although it does not have to file its accounts in the CRO. It still needs to file its annual return as well as a copy of the audit report issued.

    Regards


    dbran


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  • #7
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    In an unlimited company that only hold assets and has no creditors or debtors of any kind, do the assets effectively become the property of the shareholders, in proportion to their shareholding?
    If so, and I bought out the other shareholders and then ultimately disposed of the assets, I personally would be liable for the CGT arising or would the company have a liability too.


  • #8
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    Well the shareholders hold the shares in the company so they own the company. The assets themselves are owned by the company.

    So no, you do not own the assets, the company does. There is a difference. This would be the same irrespective of whether or not the company was unlimited or limited.

    The company is liable to the CGT on the disposal of the assets. If the company cannot pay the CGT then the shareholders are then liable. So yes you would effectively be liable for the companies CGT.

    There would be a separate Income tax or CGT liability when you subsequently disposed of the shares of the company.

    dbran


  • #9
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    Thanks dbran! The light has come on, you make perfect sense! Fortunately plan B has emerged as simplicity itself to give the desired result!!


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