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.

Lidia Ivanova

International Lawyer
Antwort Law

What are the risks of acquiring a ready-made company?
If this company has been in business before, be sure to check it for hidden debts and unresolved legal issues that could lead the new owner to financial losses and legal problems. The actions of the previous owner, such as illegal financial transactions or violations of the law, may negatively affect the company's activities after the change of the founder and director. Such verification is not always 100% possible, so buy a company only from verified service providers. Antwort Law is pleased to offer you a number of companies both previously operating and completely new in the most popular countries for business development.
Why is choosing a reliable shelf company provider important?
A trusted contractor will provide a complete history of the company, including its financial status and legal status, which will avoid hidden risks such as unknown debts or legal obligations. It also ensures that the company has already passed all the necessary checks and meets all the requirements for doing business. In addition, professional performers are always ready to help the new owners of the acquired company in case of any questions in the future, and also offers related comprehensive services, such as assistance in opening bank accounts and further tax support, ensuring a smooth transition and sustainable operations.
What is a “shelf company” company and why is it needed?
A shelf company is an already registered legal entity prepared for the start of activities by a new owner. The main reasons for purchasing a ready-made company are to save time to enter the market as quickly as possible and to avoid complications associated with registration for certain categories of founders (for example, holders of high-risk passports). Such companies can also, upon request, already have open bank accounts and obtained licenses, which further speeds up the process of starting a business.
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