Forming a company

Injuryprone

As the title suggests, the time has come that I'm going to have to go down this road. I'm assuming that a fair few of the dairy people on here have already formed companies. If so, I'd be interested in finding out how the transition went and if some things would be done differently if you were doing it again.

The other reason for making this thread is that my current accountant, who I get on well with, doesn't get involved with companies, so I'll have to find someone new and would like to hear any recommendations in the north cork area.

I have enquired with IFAC and FDC and tbh their fees for the changeover were both more than I was expecting, especially FDC (10k). I'm wondering are these fees justified and reasonable or is there better value out there

duffysfarm

i cant recommend some one in your area but when comparing fees and work make sure you are comparing like with like. The term "Accountant" is not protected and there are a people out there calling themselves one and i dont think this is fair. Also some one can be a qualified accountant but not have a practising certificate or professorial indemnity insurance.
in saying that a quote of €10k does seem excessive and i would like to know what work they are doing to justify this.

Injuryprone

The 10k would cover everything involved in changeover, from registering company, setting up directors loan, land lease etc. Organising changeover of milk account, herd number, sfp, direct debits etc.
I'm sure I'm forgetting stuff but basically there'll be nothing for me to do bar set up the new bank account and sign various forms

duffysfarm

That seems a bit of a rip off. Could you not do a lot of that stuff yourself such as the stuff with the department?
A lease agreement would eba word document that is changed for each persons details.
Company formation is €250 with a company that specialises in that kind of work.
I work as an accountant and I am not looking for business but I just cant see how they could justify that fee.
I appreciate there would be a certain amount of work involved but even a €5k fee would seem like plenty to me.

Did they give you any idea of an annual fee for the company accounts?

Injuryprone

Somewhere between 2-3k +vat depending on work needed. The 10k was +vat too btw

atlantic mist

do you keep the land out of company or do you put it in?

fees seem excessive

master leases are available on IFA website

Injuryprone

Yeah you keep the land yourself and rent it to the new company. Fairly standard procedure I think. Everything not permanently fixed is sold to the company through a directors loan (stock, machinery, fixtures and fittings etc)

Stationmaster

10k seems very excessive. As lads said here you can get a new company set-up for €250/€300. There is a lot of paperwork/messing getting direct debits etc set up but that can still be all done by yourself.

While statutory accounts have to be filed and an annual return made to the CRO the fees shouldn't be too high once the company isn't being audited. €2k/€3k would be reasonable here alright if it's a decent sized farm.