Transfer trading from one company to another

[Usman]

Hi all,

I've set up a limited company to start my property portfolio and have my business bank account set up. Can I use this entity to temporarily trade for another purpose for 1 to 2 months?

Basically, I'm testing out a sales page for a product. If I sell the products then I'll use the business bank account I already have.

Shortly after, I'll set up a new Ltd company for the sole purpose of the new venture. Can I transfer the 'trading' element from one company to another? I want to test my sales before forming a new company.

If I make no sales then there's no issue.

Thanks

[gryffron]

What do the Articles of Association of the ltd company say it can do?

If you bought an off-the-shelf company they likely say it can carry out any trade it pleases (other than protected trades like law, architecture etc)

Provided the AoA allow it, then the law has no problem at all with however you want to arrange your affairs. Including transferring assets between companies. Are you the only shareholder? If not, other shareholders might have a say in the company disposing of valuable assets in this manner.

Gryff