Shelf companies are a good alternative in countries where the business incorporation procedure takes a long time to complete. As they are already registered and just waiting to be acquired, they are an option when you are in a hurry to start your activities. Is it possible to buy an aged company in Germany? The short answer is yes. However, below we will elaborate more on why this is a viable solution.
Acquisition vs. registration advantage
Germany is one of the countries where the incorporation of a new enterprise takes some time to complete. Even if the formalities have been streamlined, there are still bureaucratic hurdles to pass, which makes buying an existing company less complicated. This means that the acquisition of a shelf company is definitely a variant you should consider because the transfer agreement is faster.
Another advantage in the acquisition corner is the bank account opening step. This is, perhaps, the most time-consuming procedure when registering a new entity, whereas a ready-made onealready has the account setup.
To get an idea of how the process works, you can find here German shelf companies provided by BridgeWest Germany. As for the characteristics they come with, the best example is the VAT number: some are registered for VAT, others are not.
Business-ready almost immediately
German shelf companies can be used to start any activity almost immediately. Why almost and not directly ready? Because, following acquisition, you still need to make various amendments and submit various notifications to the Commercial Register.
Some of these changes are mandatory, such as the owner’s name and director. Others are options, such as the name of the company and its share capital. However, most formalities are easy to complete, and then you can start operating.
Variety of companies for sale
When we say variety of companies, we don’t mean the fact that you can choose among available entities, as you can register a new one under the desired legal form. Variety often covers:
- older or newer companies;
- multiple service providers that sell such companies;
- specific characteristics of these companies.
Access to financing
Capital is essential when doing business in Germany, and, as in most countries, financing may be an issue when you don’t have it, especially if you just come from registering a company. This is not the case with shelf companies, as they can obtain loans more easily than recently incorporated entities. All you have to do is buy a company that has need registered for 2 or more years. These entities are registered to be kept dormant; as such, they will not have negative financial backgrounds, which is important when trying to access a loan.
Increased credibility and reliability
The age of a company also contributes to its credibility and reliability in a competitive market like the German one. It can help you:
- land new clients and contract;
- enter private partnerships;
- enter partnerships with local authorities or the government.
German shelf companies have track records that can be verified and, thus, increase their credibility in front of other companies and even potential clients.
Acquisition considerations
If you wonder how to choose a German shelf company, there are a few things to know and that will help you, such as:
- the service provider – always check the company you’re buying form;
- companies – do not stop at the first business you find, verify more entities until you find a suitable one;
- due diligence – even if there are no problems with such companies, it never hurts to do a quick search on them;
- price – the age dictates the price, so have in mind the reason for the purchase before choosing an entity that is too cheap or too expensive.
If you are new to this country, you can also rely on experienced agents, such as BridgeWest Germany, to check and choose the right entity.
Shelf companies are always an option, no matter if you are in a hurry to start a business or don’t know the legislation and want to make sure you are on the right track. In Germany, they are easy to purchase and setup to commence operations without too much hassle. All you have to do is find the appropriate entity and complete the formalities that enable you to enter into business.
