Today, investing in the offshore business has been a popular step among global business investors.
Although the concept of the offshore company was initially considered to be fraudulent, however, over time, it has been clearly understood that proceeding ahead with an offshore company can help a business owner to gain numerous tax benefits.
The offshore industry segment allows the business investors to incorporate a business entity in different tax-haven destinations.
To commence the business activities faster, without going through the hassle company documentation process, the business investors can proceed ahead with a shelf or ready-made company.
Well, now the question is, what is a ready-made offshore company?
The Concept of Ready-made Company
As per the offshore industry's legal laws, the ready-made company are offshore companies that the registered agent has already enrolled and anticipate "on the shelf" until they are moved to an interested customer.
The principal motivation behind a ready-made company is to save time that would usually be spent on experiencing the full registration cycle of another registration.
Another core reason behind purchasing a shelf company in the popular offshore jurisdictions is that these business structures have aged, which helps to build a high reputation when it comes to dealing with the financial aspects.
*Another form of ready-made company is Vintage Company- that has been held for at least one year.
While a conventional shelf company would, for the most part, cost equivalent to new incorporation, a vintage company will consistently be considerably more costly – because the government charges, registered office, and registered agent expenses for all the earlier years since the enlistment would need to be secured on head of the standard incorporation and document arrangement expenses.
Key Points to Consider Before Buying a Ready-Made Company
Before you end up purchasing a shelf company to commence your business activities, make sure to consider the following key points:
- Ensure that the company has never traded before
- Make sure to have a glance at the company books of the selected company
- Ensure that the selected company is in good standing with the government authorities
- Transfer the ownership of the company to the new owner
- Go through the company documents like Memorandum and Articles of Association, Certificate of Incorporation etc.
- Get complete information on the previous directors and shareholders
- Have a check at the share certificates
The company documents are to be checked prior because alterations are to be made accordingly while buying an offshore shelf company.
Additionally, buying ready-made or a shelf company helps the business to conduct offshore banking activities with ease.
Well, you might be still thinking, is it possible to alter the name of a ready-made company? Well, the answer is Yes!
How to Alter the Name of a Shelf-Company?
So, now you are aware of the complete proceedings that need to be checked before incorporation.
While buying a shelf company, most of the business owners prefer to proceed with the existing name as it holds a weightage and reputation, and it turns out to be easy to conduct the business activities.
However, if the business name doesn’t match the activities that you are going to conduct, then alteration of the trade name is the next step.
When you purchase a shelf company, a process starts to change the principal director(for shelf companies, this is a chosen one named by an enlisted agent). The new director will be the individual designated by the customer.
At that point, the recently selected director will direct the principal issue of shares.
When does it make sense to compose your own 'tailor-made' offshore company contrary to purchasing a shelf company?
Another 'customized' offshore company will commonly be an alternative when there are extraordinary prerequisites to the company's name or when the customer needs an offshore company with a specific registering date.
For this situation, you will need to sit tight for(lose) some time until all the corporate reports are ready.
What are the Advantages of Purchasing a Shelf-Company?
As it has been mentioned earlier that buying a shelf company helps a business investor to save time and conduct the business activities, yet here is a list of other advantages that you can get by proceeding ahead.
- Lift your business with a built-up company – unwavering quality accompanies a mature company, including commercial credibility, consoling for your customers.
- Build up business connections effectively – business and banking connections are effortlessly settled with a more established company.
- Gain certainty from clients – new and existing customers will feel more sure managing with you, as your company will have a set of experiences.
- Straightforwardness and spare time – the cycle is fundamental, and straight forward, shelf companies are quickly accessible to transfer over to you to start trading with the company.
- Offshore banking- since an existing company holds a high reputation and a good standing in the law's eyes, it becomes easier to carry out the financial tasks. Here’s a list of the advantages of offshore banking that will help you to understand the benefits at ease.
- Buying a shelf company positively impacts customer loyalty and enhances the confidence
This comprehensive guide provides the core details that you should know before buying an offshore shelf company. Many complex variables are encompassing this theme because each case is extraordinary.
Now the next question is: How to Proceed Ahead?
Well, to take the respective business move, it is recommended to proceed ahead under an expert’s guidance who can help you to take the legal steps at ease.
At Business Setup Worldwide, we take care of the business cores and provide the essential business setup solutions to our clients.
Right from incorporation to altering the trade name or opening an offshore bank account, our experts can assist you accordingly.
If you want to take a step forward, feel free to discuss this with our business advisor. Contact us today-we’d be glad to assist!