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Ready-Made Companies

Entrepreneurs have two possibilities of establishing a business: incorporating a new company or buying a shelf one. To buy a ready-made “off the shelf” company means to become an owner of the company that was created and left with no commercial activity. The best things about this kind of companies are the following: you can buy them easily and get a new business set up as soon as all the documents are signed.

Ready-made shelf companies intended for sale have certain benefits:

  • You save the time involved in creating a new company.
  • You can undertake any kind of business.
  • You can operate in any location.
  • You can purchase additional business activities or set existing ones for sale.
  • An appearance of corporate longevity, which may influence investor and consumer confidence.
  • You can access the investment capital

Today, the government encourages entrepreneurs to select one of several types of companies eligible for registration:

  • limited liability companies,
  • joint stock companies,
  • partnerships.

A ready-made company (Ltd.) is a limited liability company founded for resale. It is registered in the Commercial Register, has its own VAT registration number and company name. Such limited liability companies have fully paid up share capital with an existing bank account. Being pre-registered at the Companies House, they provide an opportunity to launch the business immediately.

Ready-made limited companies are often set for sale as the most desirable type of companies with flexible policies determined by the authorities. This business structure can exist as a legal entity having its individual owner. Thus, the owner has limited financial liability, so his or her personal capital is fully protected in case the company encounters financial issues. Furthermore, ready-made limited companies allow the strategic planning in accordance with the taxation. Profits can be distributed by means of salary and dividends, what makes it a tax effective structure. Thus, a ready-made company intended for sale purposes makes up a significant asset to the business market.

ready made company

How To Buy A Ready-Made Company

The first thing to do is to select a company from the list of companies eligible for sale in the desired location. Once the decision is made, the process of purchase of ready-made companies intended for sale can be launched. It is mainly based on transferring the shares from a shareholder to a new owner. All documents of the transfer must be authenticated by the notary and the buyer must provide his or her identification documents. When the transfer is successfully completed, the new owner is allowed to proceed with the following changes to the company:

  • change or set for sale the name of the company;
  • change the registered address;
  • appoint new members of the management board;
  • change the main business activity.

The transfer may take up to 1 hour, if all the documentation of both parties is ready for business sale. When investors buy a ready-made company, they receive a full set of registration documents. Business initiative with ready-made companies intended for sale can be started on the same day when the transfer is completed and incorporated in the Commercial Register. A ready-made company with an active bank account may require some additional financial arrangements from the new owner related to the bank account and the minimum share capital accumulated thereon.  

Ready-made business is the most straightforward way to gain immediate legal capacity without liability risks. Nevertheless, the decision to buy a shelf company should be well-analyzed beforehand so it is advisable to note that there are no shortcuts to develop a solid credit history. For this reason, such business operation should not be considered as a solution to all possible business strategies.

As the final option, the company can be checked through due diligence audit performed by qualified auditors or experienced lawyers who are in some way liable for the condition of the reviewed company.

All in all, a ready-made company can save a lot of time that can be successfully spent on the development of the newly-owned business.

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