Why would a doctor create a company in UK for no reason?

[Mm2285]

Hi, I’m unfamiliar with this area but a doctor I know created an LTD company… she works for a hospital and isn’t “doing” anything with the company and using her home address…her husband isn’t listed as a person who can make decisions or has any shares in the company.. Why would someone in the UK do this?

Lots of doctors do if they have non NHS work that they do, such as private medical work, a medicolegal practice or consultancy work.

It will be for private or locum work - very normal

Thank you very much for clarifying! And it’s ok not to share ownership or give access to a spouse?

Absolutely normal not to make spouse part of it. If they got divorced and it had any assets in it, they would be in the pot for sharing.

Yes it's fine not to give "access" to a spouse. Why wouldn't it be?

Can you please explain why you think the husband should have access OP

People set up companies all the time without their spouse being part of it. Why would you think that’s odd?

Why do you think the husband should have access and why do you know so much?

(Intense scenarios trotting across my brain like op is having an affair with the spouse and they are wanting to take as much as can in divorcing the doc!)

This is a very strange thread. My DH has his own company. I don’t have any interest in it, shares or otherwise. I know many wives that do have an interest in their DH’s company but it’s usually a tax issue. I have a career and pay tax in my own right so there’s no benefit of me being a shareholder of DH’s business.

And anyone can set up a company in the UK. It’s very straightforward and once it’s set up there’s no requirement to start trading with it. There are huge numbers of dormant companies.

Why does it interest you so much OP?

It’s a very strange thread.

This person isn’t doing anything unusual at all.

What on earth does it have to do with her husband?? Weird post.

It’s probably for locum work. Is this your SIL?

I have absolutely nothing to do with DHs ltd company, but as we are a married couple with kids and a mortgage etc we have full transparency over each other finances. He certainly doesn't need to share ownership of his company with me!

its Really hard to guess what the ops issue is.

I am guessing she could be a relative of the husband. Or doctor and her husband are splitting and op is the OW or new partner.

Maybe op is the husband who believes spouse are always involved in companies if their other half create them.

Maybe op is the wife pretending not to know anything to see if she can do this. That would be better than it not being any of ops business but her spending time wondering if it’s ok.

Quite the guessing game for a Sunday morning 😃

As others hace said maybe for locum or maybe just for a future plan, I have a none trading company for a future plan and dh isn't on it because its nothing to do with him 🤷‍♀️ if he wants to create a business I wouldn't expect to be on his unless I was actively contributing to the idea or business.

Your the husband aren’t you?

It's the opposite, if a married person had 100% shareholding in a company, then that would be split in the event of a divorce. To not put a spouse as a named director actually protects them from any liability if the company folds.

Why would you think a limited company has to be shared?

It will be for their private work.

her husband isn’t listed as a person who can make decisions or has any shares in the company why would he be. In fact adding a spouse with any separation of share class is a bit daft.

do you think the woman isn’t ‘allowed’ to do something without her DH? Is DH you?

This.

Being a company director or secretary has legal obligations and responsibilities. Unless the spouse is going to perform one of the corporate functions, it isn't appropriate.

Actually it's quite an interesting question? Is it truely a Ltd company? Surely he's just a sole trader who does different kinds of work and should just submit a tax return as a sold trader?

He won't need to make any decisions is why, it'll be for working as a locum or a medical endeavour surely.

There are advantages to being a limited company, such as if you get sued it protects your interest for example. Also, some companies will only contract with a limited company and not a sole trader. It looks much more professional and if you decide you want to take on staff such as a med sec as most of them do, you're running it through a separate organisation rather than your own finances.

We have several limited companies between us. Some we are co-directors of and others not.
You can’t give access to funds to someone who isn’t a director. There is a legal framework.
Sometimes people register company names to ‘hold’ them whilst setting up their business. It could be a variety of reasons including locum or consultancy work (although that’s often sole trader), it doesn’t have to be.
A companies house search will describe the type of business it is.