Jump to content

Setting up a PLC to trade?

Guest cobibudge

Recommended Posts

Guest cobibudge

Hi all!

I’m currently full time employed, however I’m also a very active private investor in terms of shares, bonds, commodities etc etc.

I’ve been doing this for quite a while and I like to think I’ve got some good knowledge, i’ve also made a good profit from it. 2 family members and 1 friend now want to start giving me their capital to invest, as they aren’t too familiar with trading. I want to do this, because it’d quadruple the funds I’ve got to invest with, maximise dividends and further nullifiy dealing costs such as commissions etc - also to be perfectly honest it’s always been a minor dream to run a company in investing, just far more attractive and ‘big time’ than investing personally. 

Of course, they could just give me the money to invest in my personal dealings and I’ll dish out the profits, but they (and I) want something more concrete, efficient and professional.

Please bear in mind I’m a newbie to owning/starting a business, but this is what I had in mind:

A private limited company, with myself as the majority shareholder/CEO and my family/friend being minority shareholders. Shares would be brought through the company (is this possible/easy?), then profits could be distributed depending on the share distribution. I’m not a total **** don’t worry, I do understand this would have greater tax implications! 

I’m asking on here because I can find absolutely no answer to this anywhere else online, I’m not sure if that’s because it’s simply not doable legally, or because it’s not common.

My worry would be being misinterpreted as some sort of investment fund/trust.

Any advice is much appreciated 

Link to comment

agree with the above really. The difficulties lie not in setting up the vehicle or runing the business or account. THer trickiest part would be explaining to close and dear ones what has happened if their investment dips by 50% and they need their capital returned..?

Depending on how much capital we are taking about I'd want some pretty firm legal advice beforehand I think, and agreement on all parties as to the risk, and the rules governing access of that capital. What if one of your party needed the money for an emergency or to buy a property or example? Could you liquidate funds at any point and return the capital. Is this their risk, or will you hold an agreed cash position to cover such needs.

Maybe it is best to get agreement that all money is locked away for a mnimum period? 

I once invested via a friend into their startup via a crowdfund. All has gone quiet and I am not sure if and when I get any of my capital returned..! It is not always a great position to be in and discussions can be a tad awkward. Glad I did not invest a huge amount!

Edit: bear in mind, as a business you will also have certain obligaitons such as employing an accountant to reconcile the books, file statements etc. And their are costs of registering the business and roving the business before you can set up a corporate account.

Link to comment
Guest PandaFace

Friends, family, and speculative - potentially risky - monetary investments mix as well as water and oil.

whenever people ask me stuff I give them the facts, tell them my opinion, and let them make their own decision and do their own click...

Link to comment


This topic is now archived and is closed to further replies.

  • image.png

  • Posts

    • Man, WazirX getting hacked is scary stuff. Remember how I kept ignoring the warning signs with Hotbit? Lost my whole portfolio when they just dipped out of crypto altogether. Nightmare!   So now I'm all about finding exchanges that are super regulated, haven't been hacked ever, and actually have this thing called Proof of Reserve, like a safety net for your coins.   Been using Bitget for a while myself. They list cool new projects before pretty much everyone else, which is awesome. But the real kicker? No hacks, ever! Plus, they keep a crazy high reserve ratio, like 200% - way more than anyone else, and they even do monthly reports to show everything's on the up and up. Super transparent.   This crypto world is wild, so gotta play it safe, you know? Just sharing what works for me!
    • Cocoa Elliott Wave Technical Analysis Function - Counter-trend Mode - Corrective Structure - Emerging Zigzag Position - Navy blue wave ‘c’ Direction - Navy blue wave ‘c’ is still in play Details -  Prices breached 8626 to confirm the progress of wave c (circled). Further sell-off is expected toward 5,000. Wave (ii) appears to be resisted below 9,000. Thus, wave (iii) downside is favored. The current movements in the cocoa market illustrate a clear downward trend. Cocoa is approaching the lows seen in May 2024, continuing its fall from the record high reached on April 19, 2024, at 11,722. Since that peak, the commodity has dropped by 30%. This downtrend is anticipated to continue, potentially bringing prices down to the 5,000 mark in the upcoming weeks.   Daily Chart Analysis A close analysis of the daily chart shows that cocoa completed a significant bullish impulse wave cycle starting in September 2022, when prices were around 2,000. By April 2024, this impulse wave had increased prices by over 430%, reaching the all-time high. According to Elliott Wave theory, impulse waves are usually followed by a three-wave corrective structure. The current decline from the all-time high is thus seen as a corrective phase, expected to develop in an a-b-c wave pattern.   In this scenario, waves a and b (circled) have already finished, and the price is currently in wave c. Projections suggest that wave c will likely extend to 5,000 or lower before the bullish trend potentially resumes. This expected decline is consistent with the typical behavior of corrective waves following an impulsive move.     H4 Chart Analysis The H4 chart offers a closer view of the sub-waves within this decline, showing a potential 5-3-5 corrective structure. In this structure, wave c is currently in its 2nd sub-wave, wave (ii), which seems to have completed below the 9,000 mark. The price is expected to break below the 7,000 level to continue its decline towards the 5,000 target. However, any further extension higher for wave (ii) should be limited below the 10,323 high, preserving the integrity of the corrective pattern.     Summary In summary, the Elliott Wave analysis indicates that cocoa is in the midst of a substantial corrective phase following its all-time high in April 2024. The key levels to monitor include the 9,000 mark, which wave (ii) has already dropped below, and the 7,000 level, which could indicate the continuation of the decline. The ultimate target for wave c is projected around the 5,000 mark, aligning with the typical behavior of corrective waves. This analysis highlights the importance of closely observing wave structures and key price levels to predict future movements in the cocoa market, offering valuable insights for both short-term and long-term trading strategies. Technical Analyst : Sanmi Adeagbo  Source : Tradinglounge.com get trial here!  
    • V Elliott Wave Analysis Trading Lounge Daily Chart, Visa Inc., (V) Daily Chart V Elliott Wave Technical Analysis FUNCTION: Trend MODE: Impulsive   STRUCTURE: Motive POSITION: Wave 1 DIRECTION: Upside in wave 1.   DETAILS: Looking for a bottom in wave (4) in place, after what seems to have been a clear three wave move that reached equality of C vs. A, very common target for wave C.   V Elliott Wave Analysis Trading Lounge 4Hr Chart, Visa Inc., (V) 4Hr Chart V Elliott Wave Technical Analysis FUNCTION: Trend MODE: Impulsive   STRUCTURE: Motive POSITION: Wave {i} of 1.   DIRECTION: Upside in wave {iii}.   DETAILS: Looking for a clear five wave move into Minor wave 1 to break 280$ and give us additional upside confirmation.   Welcome to our latest Elliott Wave analysis for Visa Inc. (V). This analysis provides an in-depth look at Visa's price movements using the Elliott Wave Theory, helping traders identify potential opportunities based on current trends and market structure. We will cover insights from both the daily and 4-hour charts to offer a comprehensive perspective on Visa's market behavior.   * V Elliott Wave Technical Analysis – Daily Chart* The daily chart suggests we are looking for a bottom in wave (4) to be in place, following what appears to be a clear three-wave corrective move. This move reached equality of wave C versus wave A, a common target for wave C. With wave (4) potentially complete, we anticipate the start of wave 1's upside movement.   * V Elliott Wave Technical Analysis – 4Hr Chart* The 4-hour chart indicates that we are looking for a clear five-wave move into Minor wave 1. Breaking above the $280 level will provide additional upside confirmation and signal the continuation of wave {iii} of 1. Traders should monitor the price action closely for this breakout to validate the bullish scenario.   Technical Analyst : Alessio Barretta Source : Tradinglounge.com get trial here!  
  • Create New...