Buying a Ready-Made Company: How to Avoid Pitfalls

Suppose you decide to purchase a ready-to-use company in an offshore jurisdiction. You imagine a straightforward procedure: you buy a legal entity with a bank account to have a fully functional mechanism and sleep well at night as the structure runs like clockwork and business is going well. You also take advantage of all the perks offered by the jurisdiction where the company is registered: high privacy standards, low tax rates, and minimized reporting requirements (as well as other benefits usually associated with offshore destinations). All of that may be true if you choose a professional assistant who will steer you through the stormy waters. However, you will also find a lot of scammers on the Internet, which will leave you empty-handed. Let’s discuss how to avoid possible risks on your way to a successful business.

Offshores vs. Homeland

Why do entrepreneurs go offshore to set up a business? Let’s consider the main reasons why you should venture at all:

• Diversify risks and protect your assets
• Take advantage of low (or zero) tax rates
• Streamline import and export operations
• Enter global markets
• Protect your personal information
• Launch your undertaking in a pro-business environment
• Set up a company remotely
• Start a business with a minimum authorized fund
• Register vehicles or vessels in a foreign country
• Obtain a second passport in return for business establishment
• Invest in real estate

The list is not exhaustive. However, these seem like compelling reasons to choose an offshore jurisdiction and get started quickly.

Ready-To-Use Company: Costs

If you search this information online, you will find a lot of misleading figures that often suggest the “Why pay more?” kind of thinking. However, a low cost usually comes without mandatory expenses you will have to incur – and, predictably enough, you pay much more than was promised initially. Never trust an ad that offers a ready-to-use company at USD 500, as it is impossible to get a viable structure at this price.

A reasonable price for a ready-made company includes the following components:

• State duty payable for company incorporation and annual renewal equals at least USD 300.
• You will need the services of an agent and a notary. Their fees differ from country to country, ranging between several hundred and several thousand.
• You will also need a legal address. Renting a virtual or a physical office costs at least several hundred dollars annually.
• Finally, a fee for international courier services is a must.

If you want to buy a company with a bank account, add some more expenses:

• You will need to have your documents apostilled.
• Assistance with opening a bank account is also fee-based.
• You will pay a processing fee to the bank, too.

As you can see, a company (especially one with a bank account) cannot cost just a few hundred dollars. The exact price depends on the jurisdiction, maintenance cost, office rent, staffing and licensing requirements, and so on.

I recommend that all my customers take a package solution that includes a company with a bank account, as this is the most convenient solution in terms of time, money, and effort required. You can contact me via DM or Viber, and I will tell you the full cost of a company in the jurisdiction of your choice—and you will pay just this amount without any extras!?

Choosing an Appropriate Jurisdiction

This is an important step, as the right choice will help you achieve the business goals you have set. If you are looking for a destination with reasonable maintenance costs, easy licensing, and a favorable tax policy, for example, I can shortlist several countries for you to consider. The list will be handpicked for you personally, as I don’t give one-size-fits-all recommendations. It may include classical, well-known offshore jurisdictions, such as Belize, Nevis, or Seychelles, or countries like Hong Kong, Canada, or Estonia.

I will also hand-pick a company that best suits your requirements. If you want to have an account with a European bank, for instance, I will suggest a suitable jurisdiction in Europe. If you seek a US banking opportunity, I will find an American ready-made company for sale that will help you carry out your business activities.

Read more on buying ready-to-use companies on the portal where my experts publish all the latest information on offshores – and much more.

Avoiding Pitfalls: A Short Guide

Let’s see how to buy an offshore company safely and avoid any problems in the future:

• First of all, set the goals. Why do you need an offshore company?
• Book a free preliminary conference with me or my team member to discuss a jurisdiction where you want to set up a company and a bank where you want to open an account and get tips on how to avoid any unreasonable steps in your case.
• Take your time to analyze the information you have received and make a final decision.
• My team will provide qualified legal support during contract conclusion. If you prefer a different solution, we can establish a company for you from scratch.
• Following that, we will open an account for you with the bank you have selected.

As you can see, the key is to rely on professional support. Choose at least a free session to feel more confident in the offshore world and find a reasonable price for forming an offshore company.?

Never buy a company without a preliminary, thorough check. What can be worse than buying a car at a low price only to find out it was stolen or purchasing a house only to discover that the family living in it returns from vacation just a few days after you move in? It may sound absurd, but it illustrates the situation with an offshore company very well: you should know what you are buying and how the whole structure will work to be sure you will be able to start operations right away rather than struggle with all kinds of nuances you have not expected at the start.

Good luck with your business!