A company with a history of operations and receiving payments for specific services may be required when potential partners are considering entering into a significant contract. They may wish to ensure that your company has proven experience in similar matters before finalizing an agreement with you. Nevertheless, there are situations in which you can proceed without acquiring such a firm, and we will explore these scenarios to help you make the best decision for your business.
A Company with No Revenues: When Does It Make Sense?
If you're acquiring such a company for your own purposes, for your own operations, and you have no intention of proving anything to anyone, like saying, "We've already been through this and earned this much," it can be entirely reasonable to purchase an existing company with no revenues, provided it holds the necessary license for your intended business activities. This can save you time in the process of obtaining a license, which typically takes about a month, depending on the type of license.
If the company has been inactive and operates under the general tax system, it means that reports may not necessarily need to be submitted, at least not to the tax authorities. In other words, in such a scenario, there is a higher likelihood that everything is in good standing, without any fines or claims from former partners or clients.
If the company holds an Electricity License, then reports must be submitted to the National Commission for State Regulation of Energy and Public Utilities (NCREPU) on a monthly, quarterly, and annual basis. These reports are submitted electronically. In this case, it's advisable to request the current owners to provide you with the files that were previously submitted to the regulatory authorities.
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A Company with No Revenues, but with a Track Record
This pertains to a company that was registered several years ago but has remained non-operational. If the company doesn't even have active bank accounts, the associated risks are minimal, and the likelihood of encountering any issues is low. However, if the sellers are not inexperienced businesspeople who initially intended to start operations but faced setbacks, and if the companies were deliberately established for future sales, then typically everything is in order.
In our practice, we frequently encounter clients who wish to acquire a pre-existing business but have concerns about the trustworthiness and integrity of the sellers. When we sell our firms, we provide comprehensive information regarding their history. This enables the client to confirm that we exclusively offer companies that were established with the intention of future utilization and adhered to all required regulations and standards. With us, you will immediately have access to:
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Company documents and history. We provide clients with thorough documentation and the complete history of the firm, encompassing its registration and establishment. This allows the buyer to verify that the company was established with pure intentions.
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Purpose of company creation. We openly inform our clients that all the companies we offer were founded with the goal of eventual resale. This assures the client that the firms ready for purchase have no concealed issues or financial obligations.
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Company operations. We assure you that the ready companies we offer were properly managed and maintained. This includes punctual reporting, tax payments, and compliance with other responsibilities.
If clients want to ensure, they can hire an independent auditing firm to conduct an inspection. However, this entails additional time and expenses, as we take full responsibility for our companies. Nonetheless, for firms or funds that we haven't created, we cannot guarantee them. That's why we don't list offers for reselling third-party companies on our website, and we generally don't engage in reselling them.
Everything we offer has been exclusively created and maintained by us. If you've selected a pre-existing company from other sellers and require assistance with its transfer, we are more than willing to help with the transfer process, but without an audit.
If you need a turnkey solution for a ready-made company or simply need assistance with re-registration, don't hesitate to contact us. We are ready to provide services tailored to your needs, ensuring the security and smoothness of your business operations.
