Business in UK: What does it mean is a business is listed on Companies House, but there's no other trace of it online?

by OrangeChevron. Posted on Sep 10, 2020    1    5

If a business has a name, address and other seemingly legit details listed on Companies House, but the name of the business yields zero results elsewhere in Internet searches, is it some kind of fake business? Or might someone have a completely different trading name for their business - if so, why, and is that even legal, because surely the point of CH is to list the trading name of said business?

Just trying to figure out if something is a front for a scam / drugs thing or is somehow legit. Thanks!

Comments

rcxdude 1

There's lots of reasons this could be the case. Many traders will register a company even if they only really do work under their own name, for example.

  OrangeChevron 1

Yeah the person works full time as an employee for a UK business, this is I suppose you'd say a side hustle. It just seems odd, they made a big deal for a long time about setting up a business, but never said what the business actually was, and there is zero trace of any business operated by them online other than the CH registration. I honestly wonder if it was all made up and they just set up a Companies House name to look like it was true.

comoutersearch 1

Shell company for tax purposes?

  OrangeChevron 1

Hm interesting, so how would they benefit tax wise? Sorry I'm a bit dense with these matters!

comoutersearch 1

Not sure on the full details but certain expenses can be written off as business expense, reducing tax burden. E.g. computers, travel etc. You claim those as business expense, reducing your tax paid. That’s on an individual smaller scale level, e.g. wether you want to be classified as self employed or registered as a one person company.

Another benefit could be to add legitimacy to your business by having a company registered. But there’s obvious cost and trade offs between the two and I suppose everyone is looking for the most efficient way to reduce tax burden. Tax rates may differ as well between a self employed and company. Don’t quote me on this though so make sure to fact check.

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