Questions and Answers

Can I have a one-director company?

Q. I had been thinking about transferring my business to a Limited Company in the past but was reluctant as I was told that I needed a second person to act as a director of the company. Is it true that I can now set up a Limited Company with just one director?

Since 1 June a new type of company has been introduced called a Private Company Limited by Shares or LTD Company for short.

The LTD Company is a new simplified model of a company which reduces the administrative burden on the promoter of the business.

If you wish to transfer your sole trade business to an LTD Company you can, should you so wish, choose to have just one person appointed as director of the company.

This removes the need that was there under the old rules to have to appoint a second person who may not have a day to day involvement in the running of the business.

Existing companies can also convert a company established under the old rules to an LTD Company to avail of these simplified procedures.

If you are interested in the possibility of setting up or converting to an LTD Company then your local TaxAssist Accountant can help you through this process. Call us today for a free consultation.

Date published 1 Apr 2016

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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