Unemployed, setting up own company - ILR

[wunder]

I'm on HSMP, subject to HSMP JR
I can apply for ILR in February 2010

However I was made redundant in July and still unemployed. Now I'm thinking of setting up my own company so I can sell some bits and pieces of intellectual property I've accumulated over the years.

The questions are:
1. Can I still get ILR if I'm working in my own company?
2. If yes, what are the minimum requirements for that? Any requirements on time for the registration of the company, profits, etc?

[ashishashah]

Hmm..Intresting..Even i was thinking on simialr lines.

Can any one working as a contractor throw some light on

1)How much time and money required to open your own co?
2)Is it OK ,that your co. doesnt earn any revenue ? (as you are the only employee/director and you dont have a job!!!)
3)Critically,can you get extension and ILR based on this co?

[wunder]

I probably should point out that I actually hope to have an actual company with clients and (hopefully!) profit - I was going to launch it anyway, but unemployment seems to force me to do it 1 year early.

[jagacharaja]

Hmm..Intresting..Even i was thinking on simialr lines.

Can any one working as a contractor throw some light on

1)How much time and money required to open your own co?
2)Is it OK ,that your co. doesnt earn any revenue ? (as you are the only employee/director and you dont have a job!!!)
3)Critically,can you get extension and ILR based on this co?

Speaking from my own experience, it took a day to set up my limited company through an accountant. Apparantly it's very easy to do so and I must admit I was wondering about the legitimacy of it all for the first few days (only because it seemed too damn easy to set up a company) - but after appropriate research and talking to people in the know I am confident that it is legit and indeed very easy to set up one's own limited company. I googled accountants in my post code, got a quote for their services and the accounting firm proceeded with setting up the company. I didn't have time to look around for better quotes but it cost me GBP 200 (plus VAT which you can claim back if you set up your company to be registered for VAT) all in.

As for question # 2.. I don't see why anybody would have a problem w/the company being stagnant... afterall it's your company and if it's not making any money then frankly it's no one else's "business" but yours!

Definitely no clue about # 3 but again would like to think why not? It's your company, you're doing business under it, and as long as you're able to show your sustainability from it, then why not? Obviously it may not be as easy as being in permanent employment to show proof of this but surely not impossible? I'm sure an accountant's letter or something will probably come in to play.

I must emphasise I do not have first hand experience regarding questions 2 and 3, just thinking out loud FWIW.

As an aside: If the company's yearly revenue is not going to exceed GBP 68,000 then VAT registration isn't required. Also if my research is correct the company incorporation costs (i.e. accountatn's fees for e.g.) amongst other things can be "claimed back", though am not sure exactly what that means. Couple of links I was just looking at: http://www.lawpack.co.uk/Knowledge/Busi ... cle845.asp and http://www.contractorcalculator.co.uk/c ... enses.aspx

Not sure if this helps; as you can see I'm new to this myself so would love to hear from those in the know.

[wunder]

Definitely no clue about # 3 but again would like to think why not? It's your company, you're doing business under it, and as long as you're able to show your sustainability from it, then why not? Obviously it may not be as easy as being in permanent employment to show proof of this but surely not impossible? I'm sure an accountant's letter or something will probably come in to play.

Well, that's the most important part that needs clarification. What is needed to show this sustainability? And if the company is new and losing money (which is quite normal for brand new companies) - how will the Home Office react?

[cheshiregoan]

Definitely no clue about # 3 but again would like to think why not? It's your company, you're doing business under it, and as long as you're able to show your sustainability from it, then why not? Obviously it may not be as easy as being in permanent employment to show proof of this but surely not impossible? I'm sure an accountant's letter or something will probably come in to play.

Well, that's the most important part that needs clarification. What is needed to show this sustainability? And if the company is new and losing money (which is quite normal for brand new companies) - how will the Home Office react?

Ultimately the Home Office wants proof that you can support/maintain yourself and any dependants. If it is a registered company, then it is a separate legal entity to yourself. So the company making a loss does not mean that you are making loss.

[ashishashah]

Ok..
1)So if i (employee/director of LTD co) has the momey to survive/sustain ,but my company is not paying me any thing bcoz of lack of business ,am i still"employed" by that company?(As during ILR,you SHOULD be "employed").

2) I dont mind paying my self some "salary" .But where the money will come from into the company?(assuming that company has no business/clients).And if co. is not generating any revenue,how wil it pay to employee ?

3)What are the tax/legal implications of running such an "empty" company?

[Sushil-ACCA]

taxes losses can be claimed for future profits

annul cost of legal work to accountants £250-350 if company is with low transactions

[wunder]

Ok..
So if i (employee/director of LTD co) has the momey to survive/sustain ,but my company is not paying me any thing bcoz of lack of business ,am i still"employed" by that company?(As during ILR,you SHOULD be "employed").

Anyone knows anything about this part?