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18 December 2017 You are not logged in. Login now.

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SFS News

SFS NewsAs part of our commitment to keep our Clients updated about legislation, sectoral news, service provision, ... we have included this area on a website.

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What is a Ready Made Company?

ready made companyWhen starting your own business you may ask yourself do I want to register a new company or should I buy a ready-made company? These can often be referred to as a ‘shelf company’ which is essentially a company that had been formed previously and is pre-registered at Companies House. They have had no previous trading activity and has been sitting on the shelf waiting to be purchased. It is not to be confused with a company which is yet to be incorporated.

Previously all Companies were formed with nominee directors and shareholders in place as it was often faster to transfer a pre-registered company. Registering and new Limited company would take weeks to complete. When purchasing a ready-made company it allowed people to transfer the ownership and resign nominee officers then appoint the new individuals.

In recent years the demand for shelf companies has dropped considerably with the introduction of online formation systems. This allows people to incorporate their new limited company with their details on the company records from the very beginning. The online formation process can be completed in a number of hours with the introduction of same day formations. Although incorporating a new company online is far more popular than purchasing a ready-made company there are still some reasons people require a shelf company. The most common reason is the incorporation date shows the company has been in existence for a number of years which can be beneficial as it gives the impression the company has been in business for a longer period. It may be the case the company has been registered with a particular name that is required by an individual.

If you are looking to purchase a ready- made company you will need to ensure it has been properly maintained whilst waiting to be purchased. This means that all paperwork is completed and relevant fees are paid to HMRC annually. There are various service providers who deal with the purchases of ready- made companies online for a fee. However some people choose to enlist the help of an accountant who can check that everything is correct and above board, which gives the buyer peace of mind. This is a more expensive option obviously, but if it means that there are no mistakes made then it allows the process to be finished quicker.

If you wish to register a new Limited company we will be pleased to assist. Using our online formation software you can register your company in just a few hours.

company registration