off the shelf companies uk

The trend of starting a new business seems very common nowadays. But at the same time it can be very hectic. Doesn’t matter you are a settled businessmen or an entrepreneur, you need to face the hassle of the process. But not anymore. Knowea Formation Limited is here to rescue all of you from the stressful situation. Now you can buy a company name off the shelf and start your business right away.

Are you confused? Can’t decide which way to choose and how? Well, you don’t need to worry anymore. You are not alone in this journey as we are here to give you the clarity. In this article, we will guide you through every single step. Let’s discuss the benefits of an off the shelf company, how to purchase and and what you need to do after purchasing one.

What is an Off the Shelf Company?

To know further about how to buy a company name off the shelf, you need to know what is a shelf company. Well, an off the shelf company is a business structure that is pre-registered. The owner of the company has already completed all the registration process with Companies House. In this case, when you will purchase one off the shelf company from its owner, you will get everything readymade. It will include a bank account, an official address and others. So, you won’t have to wait for the time consuming processes and can start your desired business from that day onwards. Isn’t it amazing?

Why Buy a Company Name Off the Shelf?

Purchasing an off the shelf company name has a whole list of benefits that make the process of establishing your business smooth and hassle-free:

Immediate Company Formation:

You avoid the elaborate, tedious procedure of forming a new company. A shelf company is ready to use when you need it.

History of Established Business:

Even though the company hasn’t been running, its age alone will make it appear more credible and trustworthy to clients and investors and business partners. This is a company with a history that seems just to go back years long; hence, the trust instills.

Quicker Approvals for Contracts and Partnerships:

In a few types of industries, an already established company can qualify you to receive contracts, partnerships, or loans faster than if it were not established. This opens doors and gives you an edge in business.

Easier Banking and Other Financial Benefits:

Banks and other financial institutions are more likely to grant credit, loans, or banking services to an older firm than with an almost new one. More readily available funding or opening accounts might be achieved.

Compliance Efficiency:

Perhaps, the strongest advantage that shelf companies can offer lies in compliance efficiency. With most shelf companies sold on the shelves, at least some compliance work has already been done, and you never have to worry about things like initial filing or formalities at the law, a prerequisite for gaining access to the other company names sold on the shelves.

How to Buy a Company Name Off the Shelf?

To buy a company name off the shelf, you have to follow these steps:

Choose companies that are reputable and sell shelf companies. Make sure they provide proper well-documented companies.

This checks the company profile information, from registration number and the date of incorporation, to the type of industry the company belongs to.

After purchasing the company, it now is owned by you. Wholly it is a very fast process, and it can take as short as hours.

Within days of your acquisition of the company, its directors, shareholders, and even possibly its name or purpose should be updated to reflect your business goals.

The seller will often sell you a shelf company that comes with the existence of a bank account. That can be quite a useful boom to your front-end efforts.

What is the Purpose of a Shelf Company?

As we discussed earlier, a shelf company is already existing company. Its objective is to give companies or persons an opportunity to own one without having to wait for the registration process. This bypasses what sometimes takes lots of time: the setting up of a new company from scratch. Of course, there are some industries where time is everything, especially a company wishing to begin trading or even compete for contracts.

What are the Follow-Up Requirements Once You’ve Bought a Shelf Company?

After you buy a company name off the shelf, you’ll need to take care of a few specific tasks. Here we are mentioning them.

File update of the legal records of the corporation with new owners and management structure.

Find out whether the company complies with all other regular legal obligations in your jurisdiction, such as annual returns or tax filling.

You will need to open banking services for your business if you did not buy a shelf company with a bank account.

If you will use the company to carry on business operations, you will need to inform clients, suppliers or partners of the ownership change.

Depending on the industry, you will require certain licenses or permits before you can start trading.

What Are the Benefits of Buying a Shelf Company with a Bank Account?

Probably, one of the greatest advantages to the purchase of shelf company with a bank account is the facility. ⁤⁤Opening a business bank account is not really easy, and it will take some time, especially for a newly incorporated company. By buying a shelf company for sale ready with a bank account in place, one can immediately get to commercial banking facilities saving him time and effort. ⁤

There are some more benefits you will get including:

  • Access to a business account for transaction is convenient.
  • Loan or credit facility and the application become easy.
  • Opening of online business payment gateway accounts become fast.

Here Are Some FAQs You Need to Know About Off the Shelf Companies

Can a shelf company hasten my access for getting a loan?

Yes. A shelf company can hasten your access for getting a loan. That is because it is an older and more established company, and that can make things go easier or more smoothly. It may even help your lenders look at it in a more credible light.

Can I buy a shelf company with a bank account already set up?

Of course. Knowea Formation Limited provides shelf company with a bank account. Some sellers setup the bank account and sell them along with the companies. So, the buyer can get everything readymade. Now no one will have to face the struggle of going through this process anymore.

Is it necessary to hire a lawyer when buying a shelf company?

No, it is not compulsory to hire a lawyer when you have to buy a shelf company. But surely, you will get lots of benefits if hire one. They can guide you through the transaction method correctly. With the help of the lawyer you can focus on the legal requirements and follow them properly.

Do I need a business plan to buy a shelf company?

You don’t need a business plan for purchasing a shelf company, but you will then have one to help you structure and grow your business after purchase.

How do you keep details up to date on a shelf company once purchased?

Once you have completed the purchase, you’ll file the paperwork with relevant parties so that directors and shareholders can be updated in the secretary of state’s database and probably the company’s registered address.

Do I need to pay taxes for a shelf company?

Certainly, you would need to pay tax post its incorporation under the company law of the jurisdiction it is registered in.

Can I get an EIN for a shelf company?

Yes, if your shelf company is based in the U.S., you can apply for an EIN to process payroll, taxes and other business-related activities.

How can a shelf company assist with contracts?

Sometimes, an older company is seen as a more stable concern, and it makes the process easier to get contracts or other business partnerships with them or government agencies.

Can I merge a shelf company to another existing business?

Certainly, you may but you’ll need to comply with the legal requirements of mergers in your jurisdiction.

What are some of the challenges of buying a shelf company?

The major challenges include ensuring that the company has no unrecorded liabilities, updating all legal and compliance records, and understanding ongoing costs.

How does a shelf company affect my personal liability?

A shelf company limits your personal liability just like any other corporation, protecting your personal assets from risks through business related matters.

Conclusion

The best quick and easy way to start business is to buy a name of a company. You bypass registration of a company and buy a going concern and thereby acquire its history of being a good actor, so you’ll get into partnership and open banking services or accept contracts within a short space of time. Although easy to do, you still have to confirm the legal existence of the company and update its files once you buy one. Buying a shelf corporation may well be the best solution for an entrepreneur wanting to get going quickly.