This document outlines the steps for dentists to incorporate their practice as a limited company. It discusses 1) evaluating the feasibility of incorporation and whether it is right based on current performance, 2) important tax planning considerations when transferring an existing practice to a limited company, 3) the process of formally forming a company, 4) maintaining compliance as a company including annual reporting requirements, and 5) opportunities for tax efficient profit extraction.
Audit, accounts, financial statements and board reportRaksha Shree
Sec 128 to sec 138 of companies act 2013 - short notes for ca inter and final audit and law - Preparation and Maintenance of books of accounts of the company. Preparation of financial statements, Board's Report - Contents of Board's report - Inspection of books - Revision of financial statements - Accounting standards and Internal Audit mentioned here
Audit, accounts, financial statements and board reportRaksha Shree
Sec 128 to sec 138 of companies act 2013 - short notes for ca inter and final audit and law - Preparation and Maintenance of books of accounts of the company. Preparation of financial statements, Board's Report - Contents of Board's report - Inspection of books - Revision of financial statements - Accounting standards and Internal Audit mentioned here
An Income Statement of a company is a financial statement that shows the company’s revenues and expenses during a specific accounting period. This statement reports the financial performance of the company. Copy the link given below and paste it in new browser window to get more information on Income Statement:- www.transtutors.com/homework-help/finance/income-statement.aspx
Class 12 Accountancy Project
Analysis of Financial Statements of Deepak Nitrite Limited.
Specific 1=> Calculation of Accounting Ratios. (2018-19, 2019-20)
Specific 2=> Cash Flow Statement and comments on it. (2018-19, 2019-20)
Specific 3=> Segment analysis of 4 segments on the basis of Revenue, PBIT, Capital Employee and Combined Comparative Statement.
The data used for this project is from the annual report of Deepak Nitrite Limited taken from www.bseindia.com.
From the data of the financial year ended 31st March 2020
Jimmy Gentry presents "The Income Statement and Cash Flows" in Minneapolis on Oct. 4, 2011 at the Star Tribune during the Reynolds Center's free workshop, "Business Journalism Boot Camp."
For more information about free training for business journalists, please visit businessjournalism.org.
A profit and loss statement is a financial statement that reports on revenue, operating costs and expenses incurred by an entity within a nominated period of time.
Founder and Managing Director of CLS Chartered Secretaries, a Company Secretarial Advisory Firm. With over 14 years of extensive experience in firms such as KPMG, Deutsche Bank and Hughes Blake, Conor is recognised as one of Ireland's leading experts in Company Law and Company Secretarial practice.
An Income Statement of a company is a financial statement that shows the company’s revenues and expenses during a specific accounting period. This statement reports the financial performance of the company. Copy the link given below and paste it in new browser window to get more information on Income Statement:- www.transtutors.com/homework-help/finance/income-statement.aspx
Class 12 Accountancy Project
Analysis of Financial Statements of Deepak Nitrite Limited.
Specific 1=> Calculation of Accounting Ratios. (2018-19, 2019-20)
Specific 2=> Cash Flow Statement and comments on it. (2018-19, 2019-20)
Specific 3=> Segment analysis of 4 segments on the basis of Revenue, PBIT, Capital Employee and Combined Comparative Statement.
The data used for this project is from the annual report of Deepak Nitrite Limited taken from www.bseindia.com.
From the data of the financial year ended 31st March 2020
Jimmy Gentry presents "The Income Statement and Cash Flows" in Minneapolis on Oct. 4, 2011 at the Star Tribune during the Reynolds Center's free workshop, "Business Journalism Boot Camp."
For more information about free training for business journalists, please visit businessjournalism.org.
A profit and loss statement is a financial statement that reports on revenue, operating costs and expenses incurred by an entity within a nominated period of time.
Founder and Managing Director of CLS Chartered Secretaries, a Company Secretarial Advisory Firm. With over 14 years of extensive experience in firms such as KPMG, Deutsche Bank and Hughes Blake, Conor is recognised as one of Ireland's leading experts in Company Law and Company Secretarial practice.
C-Suite Snacks Webinar Series: Not Sold on Selling Your Business? Why Now is ...Citrin Cooperman
Sign up for our weekly C-Suite Snacks webinars here: https://www.citrincooperman.com/infocus/c-suite-snacks
Our C-Suite Snacks webinar series provides the middle market with brief, strategic, and tactical business improvement information for 30 minutes every week. Join Citrin Cooperman live every Thursday at noon for snack-sized insights for business executives.
The recently proposed tax provisions in the Biden Administration’s American Families Plan should provide substantial incentives for business owners to discuss the creation of an Employee Stock Ownership Plan (ESOP).
During this C-Suite Snacks webinar session, Howard Klein and Heather Oboda covered more about ESOPs, including:
- An overview of what an ESOP is including financial and non-financial benefits
- The common misconceptions about ESOPs
- How the current tax proposals make an ESOP more attractive
Bournemouth - Essential 6-monthly Finance Directors' Update - November 2017PKF Francis Clark
Our six-monthly Finance Seminars provide an overview of the most important technical developments in financial reporting and taxation. The seminars address the key topical financial matters, the opportunities they present, how they affect your business and the pitfalls you can avoid.
Following the brief look at cyber security during our last round of events, our cyber team will be examining the issues we are finding in practice from the work we are doing with clients. We will also assess the impact of the upcoming GDPR legislation coming into force on 25 May 2018.
Taunton - Essential 6-monthly Finance Directors' Update - November 2017PKF Francis Clark
Our six-monthly Finance Seminars provide an overview of the most important technical developments in financial reporting and taxation. The seminars address the key topical financial matters, the opportunities they present, how they affect your business and the pitfalls you can avoid.
Following the brief look at cyber security during our last round of events, our cyber team will be examining the issues we are finding in practice from the work we are doing with clients. We will also assess the impact of the upcoming GDPR legislation coming into force on 25 May 2018.
features , advantage and disadvantages of joint stock companies, difference b/w public limited vs. private limited company, formation of joint stock company in Pakistan
Exeter - Essential 6-monthly Finance Directors' Update - November 2017PKF Francis Clark
Our six-monthly Finance Seminars provide an overview of the most important technical developments in financial reporting and taxation. The seminars address the key topical financial matters, the opportunities they present, how they affect your business and the pitfalls you can avoid.
Following the brief look at cyber security during our last round of events, our cyber team will be examining the issues we are finding in practice from the work we are doing with clients. We will also assess the impact of the upcoming GDPR legislation coming into force on 25 May 2018.
Designed to benefit financial controllers and directors working in commerce, providing an ideal opportunity to update your knowledge on a wide range of subjects.
1. 1. Feasibility
2. Tax
Planning
3. Forming a
company
• Is incorporation
right for you?
• Advantages/
disadvantages of Ltd
co’s
• Evaluation of
current business
performance
• Evaluation of
current business
systems
4. Maintaining
a company
Samera’s 5 Steps for dentists to a Limited Company
5. Annual
reporting
• New practices may
benefit from being
Ltd from the start
• Existing practices
convert using either
• S162
• S165
• Identify most tax
efficient method
• Valuation of existing
practice
• Select company
name
• Form company with
Companies House
• Open bank account
• Legal work
associated with
formation
• Cease sole trader/
partnership business
• Onerous Director’s
responsibilities to
Companies House
• Maintaining
excellent books and
records
• Prepare annual
company accounts
• Submission of
accounts to
Companies House
• Company
secretarial work to
be performed
• Company subject to
corporation tax
2. 1.Feasibility
Separate legal entity
Independent of its owners/shareholders
Limited liability
Infinite existence – although ownership
could change hands from time to time
Operates in a much regulated manner
3. Should I Incorporate?
• From a taxation point of view, the answer
depends on….
• Your current and future earnings
• Your tax bracket
• The remuneration methods you choose
• Tax laws
• Seek expert advice to evaluate your
specific circumstances
4. Key Advantages!
• Limited liability as compared to being a
sole trader or partner
• Perceived status
• Easier to transfer ownership
• Better organisational form when two or
more owners are involved!
• Potential tax savings
• Opportunities for growth/expansion
5. The Disadvantages!
• Wider responsibilities as directors!
• Much tighter financial controls - bureaucracy
• Fines and charges for late filing
• Additional tax liabilities due to “benefits in kind”
• Perceived wider “social responsibility”
• Setting up costs, admin costs and annual
accountancy charges
6. Questions:
• What is my current business
performance?
• Does the performance justify
incorporation?
• Do I have sufficient systems in place to be
a limited liability entity?
7. 2. Tax Planning
• New start up practices have a much
straight forward way i.e. commence
operations as a limited company from
inception
• For existing practice owners, it’s slightly
complicated
8. Existing practice?
• It’s a process of transferring existing assets
and liabilities into a Ltd Co
• Careful tax planning is necessary to identify tax
planning opportunities
• Two main approaches to transfer assets and
liabilities
A. Transfer in exchange of shares
B. Transfer by way of a “sale at under-value”
• An up to date valuation of the existing practice
will be required
9. A – Transfer in exchange of
shares
• Form a Ltd Co.
• Transfer the sole trader / partnership in
exchange of shares in the new Ltd Co.
• To qualify for tax relief, all business assets
should be transferred
• Assets to be transferred at their current market
values in exchange of shares in the Ltd Co
• You will not pay CGT, if the consideration is
represented by shares
10. A – Transfer in exchange of
shares
• From Company’s point of view, future CGT
liability can be minimised since assets are
transferred at market values
• Owner cannot choose which assets to
transfer, hence if land buildings are
involved it’ll attract stamp duty
• Could be attractive to dentists operating
from rented premises
11. B - Transfer by way of a “sale at
undervalue”
• Form a Ltd Co
• The required level of capital in the
company would then be raised by issuing
shares
• Assets owned by the sole trader or
partners can then be transferred in to the
Ltd Co as gift or at value that’ll not attract
CGT
12. B - Transfer by way of a “sale at
undervalue”
• However, assets should qualify as
business assets
• Advantages
No CGT on incorporation
Owner can select which assets to transfer and
which assets to retain
Retained assets, such as buildings could be used
to draw money from the Ltd Co by renting etc
13. B - Transfer by way of a “sale at
undervalue”
• Disadvantages
Ltd Co could potentially pay more CGT, (on
disposal) since assets were acquired at very
low cost
Directors could potentially pay more CGT (on
disposal of shares) since shares were allotted
for a nominal consideration
14. 3.Forming a company
• Formation of a new Limited Company
• Whether a start up or an existing dental practice
first step is to form a Ltd Co.
• Two options are available
o Buy an “off the shelf company
o Create a new company with your chosen name
• Bank account set up for new entity
• Cease sole trader/partnership business
15. 4. Maintaining a Company
• Day to day responsibilities of directors
• Directors are personally responsible for
the following
Submission of annual accounts
Submission of annual return
Notify change of directors, secretaries or their
particulars
Notify change of registered office address
16. Tight regulation
• Final responsibility lies with the directors, even if
the above work could be delegated to third party
• One of directors should be nominated as the
company secretary and he/she should ensure
the following
Maintain a register of shareholders
Maintain register of directors and secretaries
17. Company Secretarial Issues
Maintain a register of directors’ interests
Ensure all statutory forms are submitted on time using
prescribed forms
Convey AGM etc and meetings to pass special
resolutions
Provide copies of the annual accounts to
shareholders
Maintain minutes of board meetings and general
meeting
18. Extracting profits
• Further tax planning opportunities / tax
efficient opportunities to extract profits
• Withdraw profit in the form of a dividend
and a salary
• Employ your spouse
• Let personal property to the company
19. 5. Annual Reporting
• Prepare annual accounts
• Submit to Companies House annual
accounts – public disclosure of information
• Preparation of Annual Corporation Tax
calculations
• Further tax planning