Calling in isn’t for everybody, so we thought it would be a good idea to share answers to our most popular questions on a monthly basis.
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What are SPV companies?
‘SPV’ stands for Special Purpose Vehicle. This is just legal jargon for something being set up for a ‘special purpose’.
In most cases we get asked about SPVs being set up for use in the ‘buy to let’ business – however, the ‘special purpose’ can be anything.
A company can be used as an SPV. However, ‘SPV’ is not a company type registered by Companies House. It therefore depends from case to case what is needed to make a company an SPV.
Sometimes, having a particular SIC code at Companies House is enough. In other cases, the company must include something called ‘objects clauses’ in its Articles. Objects clauses are optional these days, but if a company has these it means its activities are restricted to what is mentioned in the objects.
If you have been told to set up an SPV company, it is worth asking the person telling you this whether an objects clause is needed.
Some cases may need extra wording in the Articles as well as the objects clauses. Although we can do our best to help, this is where you may need to get advice from a solicitor or legal professional.
At Quick we’re always happy to help. Should you have any questions please do not hesitate to contact us by email or phone. Alternatively, visit our FAQs and Guides.
Telephone: 0844 376 3333