What to look out for when buying a ready-made company and how much does it cost?
Are you thinking about getting a ready-made company and want to know what benefits you will get from your purchase, what to look out for when choosing and what all is included in the price of a ready-made company? Let's take a closer look at the advantages and disadvantages of ready made companies.
IN SHORT: WHAT IS A READY-MADE COMPANY
A ready-made company is a finished company already registered in the commercial register. It is often established directly for the purpose of resale, and therefore meets all the statutory conditions, has not developed a business activity, and therefore has no business history or liabilities.
However, you may also come across ready-made company with history and in some cases even companies with outstanding debts and claims. When buying a company, it is always better to turn to a reliable provider who contractually guarantees that the company is not burdened with legal problems. Then no "skeletons in the closet" will surprise you.
ADVANTAGES OF A READY-MADE COMPANY
Clearly the biggest advantage of buying a ready-made company is speed. Setting up a company on your own would take you about 2 weeks of paperwork and running around the offices. In the event that you purchase a ready-made company, you can act for it virtually immediately.
The company is yours when you enter into the share transfer agreement. You do not have to wait for the company to be registered in the Commercial Register, as the company is already registered there. It has been assigned an ID number, it is registered for corporate income tax, and you can start your business within 24 hours.
Another benefit of a ready-made company is that you do not have to deposit the share capital prescribed by law. The capital is paid up by the person who sells the ready-made company. However, it must be taken into account that this is only formally paid-up capital, which must be made up during the life of the company. You either physically repay the capital or make a credit against future profit payments.
Also, keep an eye on the amount of the company's capital itself. Many ready-made Ltd. have registered capital only in the minimum required amount of 1 CZK. However, some entrepreneurs need to secure loan financing, for example, and the amount of registered capital is one of the criteria that banks evaluate when granting a loan. If this applies to you, we recommend buying a company with a higher registered capital.
READY-MADE S.R.O. DPH PAYER
The company can be purchased with VAT registration, which saves time and nerves for the entrepreneur, who finds it advantageous to invoice with VAT right from the start. When you get a ready-made s.r.o. DPH payer, you can immediately purchase goods or services and claim a VAT deduction. However, bear in mind that you will pay considerably more for such a company - registering a new company for VAT is a rather complicated and lengthy process, which is reflected in the price.
A SUITABLE SOLUTION FOR FOREIGNERS
Buying a ready-made company can also be the most advantageous option for foreigners who want to start a business without unnecessary administration and with significant time savings. Jakub Vondráček, director of Jake&James, describes our experience from practice. Compared to setting up a new s.r.o., buying a ready-made company is usually faster and easier for them. They do not have to deal with complications with bank accounts and other administrative obstacles."
RISKS OF A READY-MADE COMPANY
When buying a ready-made company, we recommend choosing from verified sellers to avoid unwanted burdens - such as unpaid debts that an already established company may carry. When choosing, stick to two rules:
- In the best case, buy a brand new company or one that has been around for a very short time to make sure it is a company with no history.
- Compare the price and check the status of the company. It is quite common to find a ready-made company on the internet whose price does not even cover the statutory administration fees. This is a clear warning sign that all may not be well with such a company and we do not recommend buying it. If you do decide to buy, you should always ensure that you check the accounts and transactions carefully. Definitely do not skip consulting with a lawyer.
An important criterion when choosing a provider of a ready-made company is therefore not only the price, but also whether it guarantees that the company is "clean" and, if necessary, what other services it offers - for example, the possibility of changing the name, providing a registered office or vehicle registration.
HOW MUCH DOES A READY-MADE COMPANY COST?
The purchase price of a ready-made company is usually higher than the cost of setting up a completely new company. The final price includes:
- set-up costs,
- costs associated with the transfer of the company,
- in some cases, the costs associated with adapting the company to the buyer's needs, such as changing the name or location of the company.
However, do not forget that setting up a business on your own is definitely not free. The price for the services of a notary is around CZK 5,000, you will pay an administrative fee of CZK 1,000 at the trade licensing office, and other expenses may be associated with opening a bank account. When you take into account the amount of time saved, buying a ready-made company is an advantageous solution. Moreover, you will avoid paperwork and bypassing the authorities.
BUY READY-MADE COMPANIES FROM 9 990 CZK
At Jake&James, we focus primarily on the sale of ready-made companies with no history. We guarantee that you will not be unpleasantly surprised by a company that already has a business history. The lowest purchase price for a ready-made company is 9 990 CZK.
Prices of our ready-made companies include:
- preparation of all contracts,
- transfer of 100 % of the company's shares to the buyer,
- the decision on the appointment of a new managing director,
- notary fees and fees for registration of changes in the Commercial Register,
- certificate with a guarantee of debt-free,
- guarantee for fully paid-up capital,
- extract from the Commercial Register.
Are you interested in buying a ready-made company? Do not hesitate to contact us!