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Shelf company acquisition


A shelf company, sometimes also called shelf or old company, is a company that was founded some time ago but was not operational, i.e. was put on the shelf. While a ready-made company shares similar characteristics, the main difference between the two is that the ready-made company, unlike a shelf company, was only recently registered.

Acquiring a new shelf company gives you the guarantee that this company will not do business, be debt free, and have a perfectly clear history. The investor can be assured that business operations can be started without the administrative or financial burdens that could have occurred prior to the purchase. As a rule, these companies were founded in the past with the sole aim of selling them later as a finished company. In this case, the seller can provide a certificate stating that no trade has taken place and the company is free of business debts and liabilities;
Acquiring an aged shelf company gives you a previously active company with its trading history and possible liabilities. It is therefore essential to receive a letter of confirmation from the seller that all liabilities - including debts - are incumbent on the seller and not on the buyer before the purchase. Aged shelf companies are preferred for commercial and branded purposes.

Advantages of a shelf company takeover
The new shareholders can benefit from various advantages if they prefer to take over an already established company instead of starting a new one. The following are the most common benefits:

Often this can be done remotely - in principle, a completed company can also be acquired from abroad - the shareholders do not have to personally take part in the acquisition process. In this case, the buyer receives a sample power of attorney by email, which must then be signed, certified and returned by post. With the power of attorney issued by the power of attorney, new shareholders are registered in the company and all company documents are sent to the purchaser by post. After that, the bank account can also be opened remotely. This procedure may vary depending on the country and service provider;
Less time spent - one of the most important benefits is the ability to save time by purchasing a shelf company. While the average time it takes to set up a new business varies widely from country to country, the average time to set up a business was almost 21 days worldwide in 2016. The acquisition process is considered to be simple and straightforward. The company can start operations immediately. In addition, all service providers advise on all uncertainties in order to facilitate the acquisition process;
Can be purchased as a total package - one of the reasons why acquiring a ready-made business is less time consuming is the fact that the buyer can purchase a fully registered business with VAT and registration numbers, especially licenses if needed, and even a bank account. In addition, the new owner usually receives all documents and tax returns that were submitted to the office prior to the purchase. Although taking over a shelf company costs more than opening a new one, given the time savings and the ability to make money almost instantly, this option can be even more cost effective.

http://www.confiduss.com/en/services/company/shelf/

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