Everything depends on your specific requirements. In some cases, a company's history refers to its registration date, while others may require a track record of transactions meeting certain thresholds. Let's explore the various scenarios.
Why might you require a company with a history?
This is often necessary for participating in tenders. However, a company's history may encompass both its age and its track record of activity. Some tender conditions require the company to have been established no earlier than a certain number of years ago. In rare instances, to demonstrate that the company is a genuine, active player in a specific field, they may request a copy of financial reports from previous periods. This serves as evidence that the company has experience in handling such cases and generating income from them. It shows that the company didn't merely decide to participate in a particular tender or engage in a specific business activity but has a history of doing so.
Additionally, potential partners may request previous-year financial reports, even when not related to tenders. This acts as proof that the company has a genuine track record in a particular field and underscores its reliability.
This requirement can also apply to charitable foundations, as not all are willing to provide grants and significant charitable aid to recently established foundations. Even if there are no issues with fund management or integrity, these organizations might simply lack a demonstrated track record. In summary, an earlier establishment date for a legal entity can instill greater trust, particularly among international entities.
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When might you need a company without a history, or when might it suffice?
If you buy it for personal use and have no intention of proving to anyone that it's a well-established and reliable entity. This is especially true if it comes with the necessary licenses. In such cases, you save time on obtaining licenses (around a month, depending on the license required). Additionally, you can be confident that no previous activities have occurred, ensuring a clean slate.
However, if you consider a company that has been in existence for a few months or more, it's essential to check its tax status. If it operates under the general tax system, has been registered in the current year, and has not engaged in previous activities, there should be no reports filed with the tax authorities and statistics department. If it's a company holding an Electricity License, it must submit monthly, quarterly, and annual reports to the National Commission for State Regulation of Energy and Public Utilities. These reports are typically submitted electronically, so you should request the current owners to provide you with the submitted files.
There is no one-size-fits-all answer to what is better or worse, as it depends on your specific needs. If you wish to determine which option aligns best with your particular requirements, do not hesitate to get in touch with us!
We can provide not only in-depth legal consultations but also ready-made companies for sale that are tailored to your goals and business plans.
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