Purchase of a ready-made foreign company
In the context of international business, not all entrepreneurs know that to launch a company abroad, it is unnecessary to do everything from scratch - from registering and obtaining a legal address to opening a bank account. There is an effective alternative - the acquisition of a turnkey company. In our article, we reveal why this option may be attractive for whom, what potential difficulties may arise, and how to implement this process.
Most often, a ready-made company is purchased for two reasons:
1) When you need to launch a business quickly, there is no time to obtain a legal address, register, open an account, obtain a license, and other important issues. In such cases, a reasonable option is to consider a ready-made turnkey company, which will allow you to start a business almost immediately.
2) When it’s difficult to register yourself depending on the characteristics of the jurisdiction, business, and personal data of the founder. Sometimes, an entrepreneur knows in advance that, most likely, he will not pass verification at the registration authority or bank and will only waste time and money. A ready-made company with an open account, a license, and a local director becomes the only solution for starting a business in such difficult cases.
Ready-made companies are available in different versions:
1) With a minimum package of documents without a current account, buying is quite simple due to the primitiveness of the company and the lower price compared to other ready-made options. However, we do not recommend choosing this option if your plans include long-term ownership, opening accounts, and interacting with government agencies. There is also a high risk of unexpected problems arising since it is difficult to establish the company's real value.
2) With an open current account. A company with a ready-made bank account is more reliable because it has already passed bank compliance (checks) and is considered by these financial institutions to be a company that inspires trust. Also, with an already-opened account, you can begin operations immediately after transferring the company without wasting time collecting and submitting documents to banks. Accordingly, this option of a ready-made company is more expensive than the previous one.
3) With an open current account and an obtained license. The most expensive company option includes the maximum number of documents. Such a turnkey company is ready to start work from the beginning, even in a specific area of the company's activities.
Further, ready-made companies differ in their background:
1) New companies: specially created for sale, they have never carried out active activities and submitted zero reports. In this option, you don’t have to worry about possible shortcomings in past activities that could affect the new owner. However, you should choose your service provider carefully to avoid buying a shell company with which you cannot open an account.
2) Previously operating companies were created for the previous owners, but for some reason, they were put up for sale. Such companies are needed, for example, to open accounts in conservative banks, where startups without a history are not trusted. It is very important to track the entire history of the company's activities to be 100% sure of what happened within the company: for example, we recommend at least obtaining an accountant's or auditor's opinion that there are no debts. However, only some things can be verified through public sources of information. To avoid problems in the future, choose reliable providers who can vouch for the company if, for example, they handled its taxes and accounting themselves.
Antwort Law has several companies that we have helped our clients manage, and they ended up being sold for one reason or another. Thanks to our support of such companies, we are fully familiar with their background and can guarantee their high quality, always providing support if any questions arise.
Remember that when purchasing a ready-made company, you are buying not only a set of documents but also related services, for example, nominee employees, provider support when opening an account, or if the company has any problems related to its past. The variety and quality of such services directly depend on the professionalism and integrity of the service provider. Buying a company in itself is relatively easy since some companies mass produce them for instant sale without bearing responsibility for the possible difficulties of the client. Only an integrated approach to your situation, additional high-quality services, and not just a set of documents will solve your problems.
Antwort Law is pleased to offer you a wide selection of ready-made companies of all types in the most popular jurisdictions for business (USA, UK, Poland with a crypto license, EU), as well as offers from our extensive network of partners around the world without additional commission on our part. Shelf companies are especially popular in Singapore, Malaysia, and Hungary. Purchasing a turnkey company can be your "lifeline" or a quick solution to successfully launching a business abroad. We will be happy to help you with the acquisition of a company and at any other stages of development of your international business.