Readymade UK companies are becoming more and more common, especially for people who require a company to be ready for them in a very short space of time. There are many companies online who sell off the shelf companies. These companies buy and sell ‘dormant’ companies that have never been used but are registered and so perfect for people looking to set up a new business quickly. This article is looking at the benefits ofreadymade UK companies for new businesses.
One of the major benefits for new businesses is the ability to get a bank loan immediately. Usually banks like to wait a period of six months and upwards before granting a new company a loan. Shelf companies are companies that have been formed for a while but have never been used; meaning that this period is immediately cancelled out, as the business has technically existed for more than six months. This means that you can show you have history as a company, and this established longevity gives the bank some faith in your business.
It is important to note that off the shelf companies are businesses that have lain dormant for a long time and often haven’t carried out any business transactions whatsoever or, if they have, their debts and liabilities have already been settled. It is essentially an empty shell to be used for the purposes of your own business.
Again, the established longevity of the company allows you many benefits that would have been otherwise unavailable, such as the ability to obtain business credit cards and lines of credits as well as being allowed and trusted to bid on government contracts. Its already established identity will also be likely to attract more investors. Forming an off the shelf company should mean that there is less hassle involved regarding the registration of the company and the choosing of a name. It means the company can begin trading almost immediately without being distracted by the usual start-up issues that may leave other new companies a bit slow coming out of the starting blocks.
There are some disadvantages to buying an off the shelf company. These disadvantages include a limited choice of business names, more expense than if you had set up the company yourself from scratch and a history that will forever show the previous shareholders and directors of the company, meaning you do not start from a clean slate like a fresh company. However, if you wish to get trading as quickly as possible, then an off the shelf company may be the best option to suit your business style and company needs.