An entrepreneur or a settled businessman, you can choose an off the shelf company with VAT number. This can be an ideal solution of all the challenges like delayed process, lengthy steps and others. Knowea Formation Limited offers a completely readymade business structure with VAT number along with official address. Now you can start your business immediately in an easier way.
In this blog, we will clear all your confusion and query though our information. We will explore what off the shelf company is, why VAT number is essential, what are the key benefits and many more. Are you ready to take our guidance through the process? Let’s start.
What Is an Off the Shelf Company?
An off the shelf company is a pre-registered business structure but has no business activity yet. Companies are, generally, “put on one side” by business service providers and sold to entrepreneurs. These people have other things in their mind than spending a lot of time to set up a new company. This way, off the shelf companies provide an established date of incorporation which gives instant credibility to clients, investors, as well as suppliers.
Why Were Off the Shelf Companies Created?
The off the shelf company’s idea appeared at the start of the 20th century when business people wanted a shortcut to starting up without having to go through the rather long incorporation process. Nowadays, they are particularly useful for entrepreneurs who quickly want to penetrate a new market or maintain a competitive edge.
What Is a VAT Number?
VAT is a unique identification number issued by the tax authorities. Businesses use this number for recovery and charging tax on the supply of goods and services. Indeed, Value Added Tax was initiated for the first time in the UK during 1973. It applies for most goods and services supplied by the VAT-registered businesses. For many of its firms operating with other businesses, especially those that are trading directly in the European Union. A VAT number is necessary for many firms to maintain operations without facing substantial discontinuity.
Why Choose an Off the Shelf Company with VAT Number?
An off the shelf company with a VAT number is a very good choice that will help you start your business quickly and efficiently. Firstly, it takes much less time because the company is already formed and registered. So, you can begin your business right away. You avoid having to wait for the usual long time required for companies and their registration for VAT.
A VAT-registered company enables you to charge VAT on your products or services and also reclaim VAT on purchases. This becomes essential if you plan doing business with other VAT-registered companies. This makes your business seem more credible and professional right from the very start, as most clients and suppliers prefer to deal with VAT-registered companies.
More importantly, a company with a pre-registered VAT number can also present opportunities to trade internationally, especially in the European Union, where tax compliance is key. In all, it is quick and easy and professional enough in ensuring your business takes off with less delay.
Step-by-Step Guide on How to Buy an Off the Shelf Company with VAT Number
We are here to guide you on how you can buy an off the shelf company with VAT number. Our team will make it easy for you. Here is the steps you need to follow:
- Searching for a Reputed Supplier
Find a credible supplier like Knowea Formation Limited who trades in readymade companies and begin searching for one such company established with a good standing in the market, registered with all the documents required, and having transparency in all its activities. Ideally, it should have experience and good records of delivering good quality services.
- Authenticating the Company credentials
Before proceeding, it is very important to do a proper investigation of the readymade company chosen. Check for any unknown liabilities or any kind of pending legal cases. Confirm that the company never traded before and check the VAT registration status.
- Conclude the Purchase
After identifying a company to suit your purpose, you have to finalize the legal documents necessary for changing ownership. The change involves changing the company’s director and shareholders list and updating the company’s account at the bank.
- Rebrand and Customize
This includes the change of name of business, registered address, and all documents relating to it. Of course, you can align the business structure according to your mission and vision.
- Start Traded
You now have your readymade company. Your VAT registration has been successful. You can now start trading. Do some invoicing to your customers and recover VAT on all qualifying expenses incurred by the business.
How to Maximize Value After Purchasing an Off the Shelf Company?
There are so many things you can do with a business like an off the shelf company with VAT number. For example, you could rename the business to something reflecting your vision and values of the business. Many will look at a new name and logo as making the business much more appealing to your target audience.
For one, this means achieving the compliance outcome of VAT. Most importantly manage to file on time. So that, you do not attract fines or penalties. Accounting software can literally help in that regard. This way, you are able to handle your finances quite systematically and not mess things up.
Grow work on your growth strategy. Focus on partnerships and maximize the size of your client base. Now use the established credibility that your new business has attracted for you like a magnet to attract more customers and dominate the marketplace.
What to Look For in Financial Records Before Purchasing an Off the Shelf Company with VAT?
We are mentioning three key points to look for in financial records before purchasing an off the shelf company with VAT number.
- VAT Returns filed by previous owner:
Confirm if any VAT returns were filed by the previous owner. This will give you an idea of the financial posture of the company and also ensure that there are no VAT liabilities.
- Financial Statements:
Even though the off-the-shelf company usually remains inactive, you should evaluate any available financial statements to ascertain the reality of the company’s existence.
- No Debts or Liabilities:
Ensure that the company has no outstanding debts, neither VAT nor any other kind of debt of interest, with the possibility of later suffering penalties.
How Digital Taxation Affects Off the Shelf Companies?
As tax authorities in various countries continue to shift towards digital taxation, businesses around the world will have to adapt to new demands. For example, the Making Tax Digital is a government initiative in the UK that focuses on VAT registered businesses’ maintenance of digital records and online submission of VAT returns. Consequent implications for an off-the-shelf business will therefore differ.
First, the investment in digital accounting tools is vital for companies to ascertain that they meet the set requirements of VAT regulations. Automation will impact positively on the management of the different finances of a business and hence reduce errors.
Secondly, the process of tax filling becomes easier and faster with the use of digital VAT systems. This will reduce the time needed to process returns, cutting delays and keeping businesses at the top of their tax obligations.
The ease of competition of off-the-shelf firms in the global markets can be one other advantage. Companies will expand their markets by complying with international tax standards and reach the customers.
Off the shelf companies should adopt digital taxation to facilitate improvement in efficiency, conformity, and development of new opportunities in the global marketplace.
Knowea Formation is Offering Off the Shelf Companies for the Modern Entrepreneur:
Off the shelf company with VAT number can be easily customized according to specified needs of entrepreneurs. This would include some of the following:
- What’s Beyond the VAT Number
For any entrepreneur, it is quite easy to adapt an off-the-shelf company to individual needs. Of the wide array of customizable alternatives, the following come forth as most prominent:
- Industry-specific Structure:
Adapt your company structure to the industry’s set regulations.
- Bank Account Configuration:
Most entrepreneurs purchase an off the shelf company with bank account. Therefore, everything regarding finance is up and running at once.
- Technology Integration:
Implant digital tools and accounting software to effectively manage VAT filings and track the company’s finances.
Frequently Asked Questions on this topic are:
Brexit impacts the rules on VAT, specifically those trading with the EU. This means that you will need to keep up-to-date with post-Brexit VAT rules.
No, you cannot reclaim VAT for any purchases made prior to owning the company.
On an invoice or receipt you might find a VAT number of a company. If you do not find one you will be able to locate it in government websites as well as tax authorities and such; for example, HMRC in the UK, some offer searchable databases.
Businesses pay VAT quarterly, except for some that pay annually, depending on their scheme. They must pay it on time; otherwise, they will incur penalties.
No, a UTR is not the same as a VAT number. A UTR is used for tax identification purposes, while a VAT number is used by businesses to charge VAT.
Anyone whose business turnover (sales and supplies) exceeds the threshold for VAT. But any business can apply to be registered voluntarily.
Conclusion:
Buying an Off the shelf company with VAT number is the cleverest thing an entrepreneur can do to get his or her business off the ground quickly and, of course, instantly earning credibility. This essentially means buying an off the shelf company from a credible supplier, really doing proper checks on the financials, and understanding your VAT compliance in order to understand your optimum business model. Off the shelf companies are used for international expansion or just speeding up the launch of your business-that’s the power they offer modern entrepreneurs.
Need to buy a VAT number company off the shelf? Well, ring us today for a completely hassle-free and professional buying process that gets you into business immediately!
