Single Director Limited Company, How to Give Loan to Company

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blobert

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Hello,

Have just started ltd company, of which I am the 100% owner.

I need to transfer money into the company, I spoke to the DCEB enterprise board and they suggested the easiest way to do this is by me giving a loan to the company.

Just wondering if anyone has any experience doing this and can advise me on the steps.

Is it just a case of me making out a document explaining the terms and the amount of the loan, then transferring the funds from my personal account to the business one?

I've looked around but cannot find an example.

Any help would be much appreciated.

Thanks
 
Have you asked your accountant ?

I would have thought that just moving the money to the company account would be sufficent as long as it is accounted for as a loan.
 
I thought every Ltd. company needed at least two directors? [broken link removed]
 
OP -If you meant single member company that's no problem.I'm single owner of a company and I lend money to the company and take it back again whenever I like.
Just to keep accountant happy I tell him by e-mail and a note is made in accounts of these loans.
However, if your company is making a big transaction and is using your own loan for that transaction and if something goes wrong and your company owes money then I'm not sure that you could suddenly take back the money you lent the company.
Other creditors may object to you being a preferential creditor of your own company. very complicated -seek advice on this aspect. otherwise no problem.
 
Technically you might be breaking the law if if its above a certain amount

I moved money like that before, the accountant had to leave a note on the yearly accounts saying it contravenes some Act

but i dont think its enforced (ahem Anglo Irish ahem)
 
No problem putting money into the Company. It's only getting money out where you have to think twice.
 
hfd said:
Technically you might be breaking the law if if its above a certain amount

I moved money like that before, the accountant had to leave a note on the yearly accounts saying it contravenes some Act

but i dont think its enforced (ahem Anglo Irish ahem)
Click to expand...

Loans TO directors BY companies have to comply with certain levels. Section 31 Companies Act 1990.
 
Graham_07 said:
Loans TO directors BY companies have to comply with certain levels. Section 31 Companies Act 1990.
Click to expand...

Yes, Graham07 is correct, do not confuse this. There are limits on the amount of money that a company can lend to a director, but not the other way around.
 
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