Once you’ve completed the process of setting up a limited company via a company formations agent, your ltd company becomes a legal entity. As a legal entity, you have the right to sell that company to someone else if you choose. Your company will continue to exist once it is sold, just like any other type of property. The difference will be only in the ownership of that company, unless you legally dissolve and close the company for good.
If you are a sole shareholder in your company and the director of that limited company, you can sell the business, including all of its assets, when you choose to no longer own it. There are however, a few things that you will want to keep in mind before you sell your limited company.
If there are other shareholders or investors in your company, the process is a bit more complex. You cannot sell the business without the approval of all shareholders. You can sell your own shares and choose to no longer be director of that company, which removes you from the business. But, you cannot sell it completely unless all of your shareholders agree to the sale.
As sole director and sole shareholder, you do not have to have the approval of anyone before selling any or all of the shares in your company. You must however, consider the current market. You should take into account current market and economic trends and determine if now is the right time for you to sell. You may also want to consider the Capital Gains Tax that you may be required to pay if and when you do sell. This tax is levied on the profit of your company sale.
If you do not feel that you will profit from the sale of your company, you may want to consider ways to increase the market potential of your business before you sell. You want to show a good strong financial performance over the past couple of years in order to make your business look appealing to potential buyers. Consider the value of your business and assets as well as your overall brand image and the overall reputation of your company. These and other factors will be strongly considered by anyone who is thinking of buying a company.
Serious buyers will have accountants that will do due diligence checks on your business. This simply ensures that the company is sound and that it presents only the most minimal risk. This information will be used by the buyer to determine if your company offers the potential for a good return on their investment. You will have to show any profit and loss accounts for your company as well as all of your tax returns and any lease agreements, loans or other liabilities that you may currently have. Accounting records will need to be up to date and you will want to show that your company presents a good financial position for the new buyer. Once all of these aspects have been satisfied, a potential buyer can make a more informed decision about whether or not your business is right for their investment.