1. can I open and register an export & import company

[maysantech]

Dear All
I am new to this forum and apology if I post this in the wrong place

I am in full time employment and also own few (buy to let ) properties for which I fill tax return form every year.

I have been helping a university friend, (who is living and working in the middle east, in the construction industry) by purchasing and sending light weight equipment such as air conditioning spare parts etc.

However, his business has now expanded and his company started winning big contracts from local authority. for example connecting small towns and villages with new power lines, transformers and control panels. Such equipment are sold by ABB, Schneider Electric and Siemens. When I approach those companies for a quote, they refuse to cooperate with an individuals, they demanded a company name and address in the UK. Hence your help would be highly appreciated with the below


1. can I open and register an export & import company under my name and my home address, if so where to start and how much is the cost?

2. Will the cost would be a one off payment or instalment (monthly/annually)

3. This company will not be advertising for business, the sole purpose of it is to help my friend. Therefore I may or may not do any business for a year, Do I have to let the Inland Revenue about the company?

4. What are the consequence if the company set ideal for a year or two without doing any business?

5. who do I go about declaring any income from the company. Can I included it in my rental property tax return or it is different issue altogether?

[GlobalTaxAdviser]

Hi

No need to apologise

On your questions

1. can I open and register an export & import company under my name and my home address, if so where to start and how much is the cost?

Yes you can easily open a company. Just go to companies house website: https://www.gov.uk/register-a-company-online. Cost £15


2. Will the cost would be a one off payment or instalment (monthly/annually)

Not relevant


3. This company will not be advertising for business, the sole purpose of it is to help my friend. Therefore I may or may not do any business for a year, Do I have to let the Inland Revenue about the company?

The company will be dormant. Tell them when you start trading.


4. What are the consequence if the company set ideal for a year or two without doing any business?

No issues at all. Businesses take time to scale.

5. who do I go about declaring any income from the company. Can I included it in my rental property tax return or it is different issue altogether?

Income from a Limited company will need to go on a Corporation Tax Return. Rental income goes on your personal tax return, If you start trading then advisable you use an accountant. It maybe beneficial to get some initial advice anyway.

[maysantech]

Hi
thanks for the reply, I have been trying to post this reply since last week but enabled due to being continuously logged out of my account.

I am going to be a sole trader (only me working no other staff) do I still need to pay coop rate tax or can I declare ant income from this company with my annual tax return form.
also being a sole trader not a limited company do I still need to registered the company with the company house. if so, what are the advantages?

[GlobalTaxAdviser]

Hi

If you are a sole trader you pay income tax which you declare on your personal tax return. You need to register as a sole trader with HMRC

Remember Sole Trader and Limited company are two completely different structures

A Limited Liability Company has a number of advantages :

1) Lower tax depending on profit plus no National Insurance and more opportunities for tax planning
2) Limited Liability
3) Status

Disadvantages would be additional responsibilities, compliances and costs though the pros may outweigh the cons

I would suggest you do have a meeting with an accountant who can go into further detail

Kind Regards