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Q: I want to start a second, completely independent business. How can I keep the finances, dividends and so on hidden from my existing fellow directors?

Aug 12 2008

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Answered by: Clive Lewis     Ask a question

If you set up another limited liability company it will be visible to others, as all limited liability companies are required to file information at the Registrar of Companies.

For all companies the Registrar needs to know the company name, the directors, shareholders, registered office, and so on. The company has to file its annual financial statements but small companies (fewer than 50 employees) can file “abbreviated accounts” which basically show a brief balance sheet together with notes.

The alternative would be to start the second business as an unincorporated business; in other words, to trade without limited liability. If you trade in a style which is anything other than your name, Sam Smith, you will have to register the name with the Registrar of Business Names and display information about the proprietor at the main trading address. Other than that the new entity's affairs will be confidential.

 
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