Converting to an Unlimited Company

There are over 3,000 companies (72 in 2013 to date) that have taken the steps necessary to convert from being a company with limited liability to one which does not.

Previously the main objective of the applications would have been to avoid Companies Capital Duty (CCD) on large allotments of shares or as a means to reduce share capital without a High Court order.

In recent years the main objective in converting to unlimited was to eliminate the obligation to file statutory accounts in the Companies Office and/or to avoid the obligation to prepare Consolidated Financial Statements for certain sized group companies.

Many people are not aware of the detail that is included in the statutory financial statements with the Companies Office which can include:

• Turnover
• Gross Profit
• Net Profit
• Directors salaries and pensions
• Transactions with directors i.e. rental payments/dividends
• Transactions with related parties/companies
• Bank balances
• Bank security held

 Obviously the information is commercially sensitive and could be used to your determinant by:

• Customers
• Suppliers
• Trade Unions
• Criminals

If you would like more details on the procedures for converting from limited to unlimited company please email Brian Dignam or call on 01 439 4207. Call OSK today for all your tax and accounting services.