To start or to buy a company: which is worthwhile?
There are a few formalities you have to go through when starting your business. You must first officially establish the new company or buy a ready-made company that already meets the legal conditions. Read on to find out which option is better suited for your business.
Starting a company "on the green field"
Starting an LLC means visiting a notary and running around the offices. You need to register your company in the commercial register and other necessities. Therefore, the process of setting up a company usually costs a lot of time and effort.
Tip! If you want to speed up the whole procedure, you can order the company formation from a consulting company - we guarantee the processing within 3 days.
This option is usually cheaper than buying a ready-made company, whether you handle everything with a consultant or on your own. You only pay the mandatory fees or the price of the service if the intermediary handles the processing for you.
You also set up the new company in your own image and do not make any changes to the register. Moreover, when you set up a new company, you can be sure that you are starting with a clean slate. For companies with a history, there is a risk of creditors of the original owner knocking on the door. With us, nothing like that will happen to you - when you buy a ready-made company, we always contractually guarantee that the company has never been in business and therefore has no liabilities.
When is it more profitable to buy a company?
A ready-made company is a company that has already been formally established by the seller. Therefore, all the necessities associated with setting up a company have already been taken care of for you.
The main advantage of buying a company is therefore speed - you can start your business almost immediately. You will appreciate this especially in companies whose establishment is more administratively demanding (e.g. a. s., SE or a staffing agency). Buying a ready-made company saves you a lot of time. However, you must take into account the mandatory transfer fees.
In addition, since an already established company usually has a paid-up share capital, you do not have to have, for example, 2 million euros on hand. The deposit obligation has already been fulfilled by the seller of the company. However, keep in mind that the paid-up capital must be made up during the company's operation.
However, there are also risks associated with the purchase of a company. You don't know what its history is. Some companies being sold may have debts or other "skeletons in the closet". So the ideal is to buy a company with no history at all - or at least to do a thorough background check before you buy it.
Our ready-made companies have never been in business and therefore have no debts. And since order makes friends, we of course guarantee everything contractually.
Which way to go?
It all depends on your specific idea for the business. If you are happy with a classic limited company and do not need to deal with VAT, for example, it is easier and quicker to set up a new company. We will be happy to help you - the whole process of setting up a company with us is a matter of a few clicks.
If you want to be VAT-registered or if you intend to do business as a public limited company or a European company , buying a ready-made company will save you a lot of time that you would otherwise spend going round the authorities. You will also appreciate this option if you need a special permit for your chosen type of business.