Readymade companies are completely legal business entities with no trading activity in their history. For those who have not heard of this term, they are also called as “off the shelf companies”. There is a huge market for these companies and they are available in many jurisdictions as well.

Entrepreneurs who are looking to start a company have the choice of registering a new one or buying one of the readymade companies available. But what are the advantages of buying a readymade company?

VAT is Already Part of the Packet

There is no need to register for VAT (Value Added Tax). You can always find readymade companies that have already done that for you. Once the ownership is transferred, you get the VAT with the shelf company.

Otherwise, you would need to wait before your VAT application gets processed for the company. Having an approved one right away allows you to start trading whenever you want to.

Buying Aged Readymade Companies

A readymade company doesn’t have to be new; it can be aged as well. The benefit of buying an aged one gives your business a great head-start. Earning the trust of banks, business partners and your target audience will be much easier.

After all, instead of dealing with a new company, they consider it as an experienced one which gives you a huge advantage. As a new brand, the inconvenience of banks turning you down because you have just registered your business can be a significant drawback.

Thanks to readymade companies, you can avoid this hurdle altogether.

Start to Build Your Brand with Little to No Delay

It might not be that difficult to register a company, yet it takes a while to be processed for sure. It can take weeks until you will be able to start trading. Readymade companies offer you a smart shortcut that you can utilize.

All it takes is transferring the ownership from the initial owner to the new one. This process usually takes a couple of days and the business is fully yours to manage. In some jurisdictions in Europe, it can take more than a month to register a business entity.

If you want the edge of not having to go through the long registration process, then readymade companies are made for you.

Readymade Companies with Ideal Brand Names

People can decide to buy a readymade company for various reasons. One of them is buying an aged company which comes with a specific benefit. Just like with domain names when it comes to websites, the registered name of the business can matter a lot for an entrepreneur.

One of the readymade companies might have the perfect name for your brand. In that case, it has an even bigger value compared to such companies in general.

A Readymade Company Has to be Checked Beforehand

Not all readymade companies are equally beneficial. It is important to check whether the company in question still has paperwork to be done or fees to be paid. What you should look for is a well-maintained company that allows you to start right away.

Often times, it is reasonable to hire an accountant who can go through all the paperwork and make sure things are correct. Then you can buy the company once the accountant gives you the green light.