Why should you buy a ready made company in Luxembourg?
Updated on Thursday 14th April 2016
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Shelf companies or ready-made companies are a good choice for foreign investors who want to start doing business abroad because they don't have to wait until the company incorporation procedure is complete. Luxembourg is a very attractive country for investments and businesses, so foreign investors can find good business opportunities here and sign contracts with valuable business partners. By choosing to buy a ready-made company they can enter into these new business relationships much faster than if choosing to incorporate the legal entity.
Buying a shelf company is a solution for businessmen who want to start trading as fast as possible. The incorporation procedure for a company in Luxembourg last about two weeks, if the documents are prepared and signed and the process is mandatory for all investors who want to open a new company in the country. The investor who purchases a company does not have to wait that long and he can begin the business activities in a just a couple of days, after the transfer of the company is complete.
A faster set-up procedure
Ready-made companies are chosen by businessmen who want to gain ownership of a company but and skip the steps of registering a new one. Shelf companies are an option for businesses that need to acquire older companies, well-known in the market. The investors must be well informed regarding the company they intend to purchase in order to avoid any transactions that would prove to be risky or unprofitable.
Other companies in Luxembourg can sometimes prefer to do business with companies that have been on the market for a longer time because they have more credibility and are more attractive to creditors.
The corporate image of the ready-made company is already established and it will be easier to obtain loans if the firm is trustful and had no payment incidents. The company can be very well known on the local market or in other regions and this is a good start for businesses.
One of the most popular types of companies available for purchase in Luxembourg are the public limited companies (SA). This business form has an important advantage for the investor: he is liable only to the extent of the amount invested in the corporation. This limited liability, as well as easy access to capital, are two of the most important characteristics of the public limited company. Other business options include the limited liability company (SARL).
Other advantages of shelf companies in Luxembourg
After they buy a shelf company, investors can submit a request for a bank loan. The bank will be more likely to approve the loan because the company shows a good payment history and no debts. A company that is two or three years old has a corporate credit history which can be presented at the bank. This maximizes the chances of obtaining a new credit.
Our company registration agents in Luxembourg can help you purchase a company that has a clean debt record and that has not registered any bad payments in the past. This company due diligence procedure is very important for all investors who want to buy a shelf company. Together with our experts, you will be able to make a safe transaction and one that will allow you to continue that company’s business activities.
The ready-made company can be transferred to the investor very rapidly, usually on the same day. Upon purchase, the investor receives the company’s articles of association, a registered office, the incorporation certificate and all the documents needed for doing business. After the new company director receives these documents, he can start the required procedure of appointing a new management for the company and even change the company name.
I'm very pleased with the services provided by the team in Luxembourg. They have explained the company incorporation procedure in detail and made everything seem very easily accomplished!
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