Imagine you have located your dream practice: your bank has agreed your funding; the vendor has accepted your offer. What next? Whilst there are many things to be considered, you want to know the key headline considerations up front:
The first thing is you obtain a copy of the existing (example GDS) contract between the existing dental practitioners and NHS England. Your solicitor will ask for this because what is in the contract will, to some extent, dictate the structure of your new practice.
Structure of the practice – considerations may revolve around whether the practice should operate on a partnership basis or on a limited liability basis. The attractiveness of the corporate vehicle to operate your business still holds true today as when Mr. Salomon first set the precedent that a company is a separate legal entity from its shareholders. Absent fraud and wrongful trade in a company exists in its own right, with its own identity separate from its shareholders. The beauty of the corporate structure lies in the tax advantages to be gained through utilising this model and good tax advice at this point is important.
Regulators Approvals – a preliminary step before any applications can be made to the CQC/LAT will be the requirement for a DRB check. Apply early. These can take anything up to two months (although the average could be two weeks). The forms are long and complex and require thinking. When you apply, always consider the new structure you have in mind (i.e. the practice is a partnership but you would like to apply for a limited company to be approved). Our experience shows that to depart from an existing and established structure at the time of purchase will cause delays and may result in variations to the GMS/GDS contract that may not have been anticipated at the point of purchase.
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Contact Details:
Nath Solicitors Limited
4/4a Bloomsbury Square,
London, WC1A 2RP
Tel: 02076816073
Mob: 07545813894
Email: shubha@nathsolicitors.co.uk
Web: http://www.nathsolicitors.co.uk/
