When it comes to buying a business, it is important to understand and decide whether to register an entirely new business and start from scratch, or choose a previously formed or established business that has already been pre-registered. Ready-made companies are also referred to as paper companies or shelf companies (blank check companies) due to their acquisition process structure. As a rule, the company has already fulfilled all the requirements for legal registration. Therefore, it can be purchased by anyone who is willing to skip the registration and incorporation process. Accounting and various law firms usually sell such companies. The companies mentioned have no commercial or business activity, they only exist in a stand-by mode.
The advantages of readymade companies The registration process for new businesses typically takes weeks or even months due to documentation processing and approval. In contrast, when purchasing a ready-made company, an entrepreneur only has to register his purchase in order to achieve a legal conclusion of the purchase process. If a person chooses to complete the registration process online, it takes even less time, usually it can be done in a few hours. Another benefit is that an already registered company will have a history or status showing that they have been in business for some time, meaning that when you first look at the company details it gives a sense of an existing experience looks at
Ready company purchase in Cyprus (fees, requirements) There are various official websites or service providers that offer ready-made Cypriot businesses to buy online. This can be LP, LLC, Trust or other type of entity. The capital required varies from a few hundred to several thousand, depending on the size or scope of a company and its age. This service includes all paperwork to be completed and the relevant fees payable to HMRC.
A purchase of the company may come with various licenses, such as an apostilled power of attorney. However, sometimes the total price of the company does not include some of the mentioned extras, so the future owner has to request them by paying them and taking into account the time frame required for the company's closing process.
If a person resides in a country other than Cyprus when purchasing the business, they can have all procedures for the maintenance and operation of the business carried out by email, fax or courier.
Basic requirements If you are willing to purchase a readymade Cypriot company, there will be following requirements you should be aware of:
The purchase must be made with a nominee director and nominee shareholder appointed; A person will need to choose company’s name from the list given by the service providers; A set of corporate documents must be signed by the person who is purchasing the company (the trust deed, the open date share transfer agreement); A company must have a financial support for some period of time in order to function.
Time frames If you are purchasing Cypriot readymade company you should be ready to deal with the following time frames:
A vat registration number can be given in maximum 2 days Bank account can be opened in maximum 5-7 days Company’s new name (if changed) approval by the Cyprus Registrar of Companies maximum 3-4 days Adding new directors to the documents (if necessary) maximum 7-10 days