Purchase of a Dental Practice by a Limited Company

Purchase of a Dental Practice by a Limited Company

Many practitioners are now considering the possibility of incorporating a limited company in order to purchase a dental practice.

A limited company is now eligible to hold an NHS Contract whether that be a GDS or a PDS contract, subject to, any change of control provisions detailed within such a contract.

Limited Liability

A limited company is a legal entity in its own right and, generally, the dental practitioners are both the shareholders and the directors of the company.  As with any company limited by shares, the liability of the shareholders will be limited which is the main attraction for a dental practitioner.  However, please remember that if you are obtaining a bank loan in order to finance the deal, it is likely that the bank will require personal guarantees from the directors of the company in any event.


There may also be some tax advantages associated with a limited company which should be discussed in detail with your accountant prior to the purchase of the dental practice.

Privacy and Cost

One disadvantage of a limited company for a practitioner may be privacy.  There will be documents to file annually at Companies House which will be transparent and available for inspection.  The filing of such forms may attract a filing fee and there will also be the initial set-up costs of incorporation.

To any potential purchaser, the choice of business structure is an important decision which could have consequences not only on the transaction but on the business as a whole.  It is therefore important to consider whether you intend to proceed as a sole practitioner, as a partnership or as a limited company.

Please contact our team of specialist dental solicitors to discuss this further on 01283 526200.

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