Trading as private limited company

[gsmserv]

hello,

i registered my new private limited company(UK) a week ago and gonna trade mainly stocks, futures,forex(also, commodities and options in the future) as ltd. and i found that to maintain a ltd is not so easy(last 3-4 years i was a sole trader, self-employed)much more paperwork to do as it is a real hassle for me as i have no experience with limited companies(have no accountant at the moment, but going to get one later).can anybody help me to answer a few questions, please.
the first my problem was ,i stuck on registering a corporate account with Interactive brokers.there are two requirements which was new for me:
1. Proof of Ability to Trade on Margin for "My LTD" and,
2. Proof of trader authority for "Name Surname"
could anybody point me out how to get an example of board, corporate resolution or any other document which would be alright for IB. btw, i`m only director and 100% shareholder of the company. does it mean i`ve got to write an trader authority for myself?
also, can anybody tell me do i have to be regulated by FSA if i gonna trade my own money(start-up capital will be between £10-£30K only for now),will not have any partners at the moment and not gonna work with other people funds?
and maybe there is more important things do i have to know before i start running my company?
any kind of help and advise will be very appreciative
thanks in advance

 

[meanreversion]

Surely you should seek professional advice on this matter. As well meaning as the feedback might be on this forum, it's not a substitute for speaking to a chartered accountant .. !

 

[azdo]

bump - interested in this too...

 

[scose-no-doubt]

You are the board. If I were you I would speak to an accountant. I'm not advising you here but I'd say he's probabably going to say your best bet would be to amend your articles of assoc to extend your duties as director/empoyee to include the ability to trade on margin for X Ltd and that you have express authority to trade on behalf of X ltd. You could probably do that by submitting written special resolution to the registrar.

Anyway, given that you'd essentially be managing the company's money, I personally doubt that the FSA would let you trade without some sort of certification. Maybe if you decided to incorporate with unlimited liability and as a service company you could argue the case but that probably negates the whole reason for your setting up the company no?

In summation get in touch with FSA first and see if you're allowed to trade - it's free. Then, get an accountant who specialises in setting up this specific type of company.

Good luck.

 

[gsmserv]

hello,

if i write and sign a written resolution of board of the directors authorising myself as a company trader and permit to trade on margin with IB will i need to send a copy to the Company House within 15 days? would it be ordinary or special resolution?
thanks

 

[donaldduke]

googling, it does not appear this is the kind of resolution that needs to filed at companies house. however i am not an accountant, if you are worried about getting things wrong i suggest you speak to one.

when i did mine i stated it was an ordinary resolution.

 

[scose-no-doubt]

I suggest you listen to donaldduke. You could find yourself in a very very sticky situation in terms of legal/taxation liability or possibly both if you do this the wrong way. I kid you not when I say the crown has adopted a rather draconian approach in the past 3 months and consensus is it's here to stay or possible get worse. Look at Gaines Cooper. Who would have saw that coming? More and more killer precedence is being set by the month in addition and it's to catch the little guys too. Close companies are in for a further dressing down next IMO.

 

[gsmserv]

thanks to everybody joining this thread, sent an email and waiting for response from FSA. will see what they gonna say. personally me, i dont think shoud be any problems with FSA as long as i dont manage other people money, but who knows. anything can happen especially now when so many changes being released from regulators.

 

[azdo]

gsmserv - let us know what you find out from IB, as well as the FSA (they can take two weeks for a reply - call them if you get impatient...) Good luck.

 

[gsmserv]

with IB is everything sorted today , written resolution of the board of director been accepted for proof of ability to trade on margin and proof of trader authority. only thing left to deposit IB account . i`ll try to phone to FSA this week if through email takes so long to get answer.

 

[azdo]

with IB is everything sorted today , written resolution of the board of director been accepted for proof of ability to trade on margin and proof of trader authority.

Glad IB is sorted. I cannot imagine FSA telling you anything if you are trading only for yourself.

What did you do exactly for IB? Steps would be great.

Do you have to amend your articles of association or change Companies House filings?

 

[gsmserv]

Hi,

i had a phone conversation with FSA today. so, the answer was i`ve got to be regulated only if i have Direct Access to the market in this situation . next step i`ve got to do to send them an email and get official answer as a proof.

 

[azdo]

Thanks for the update. "Direct-access to the market" meaning...?

 

[scose-no-doubt]

wasn't so hard was it

bet you feel better hearing from the horse's mouth rather than over the net

 

[azdo]

Hi,

i had a phone conversation with FSA today. so, the answer was i`ve got to be regulated only if i have Direct Access to the market in this situation . next step i`ve got to do to send them an email and get official answer as a proof.

Did you need a company bank account to have a company trading account at IB?

 

[Janurary]

I have no ideas on your questions, however, may you succeed.