If you are thinking about starting a business in Germany and doing that fast, there is probably one option you have not thought about: buying a shelf company. This is often a topic people hear about, and in the lack of more information, they skip past it and almost never consider it. So, in this article you will understand how these companies work and why you should buy one if you are in a hurry and don’t want to miss an opportunity.
What is a shelf company and how does it work?
Also known as a ready-made company, this is a business that has already been registered, waiting to be sold. Still, why purchase a shelf company in Germany? The first and most important reason is that you don’t need to travel all the way there to register an entity. You can simply acquire it through a professional service provider such as BridgeWest Germany and then start operating.
But how do shelf companies work, and why are they registered just to be sold? Here is an interesting fact about Germany: if you want to enter a partnership with a local authority or even the Government, as such arrangements are quite popular there, you need an enterprise with credibility. You cannot achieve that with a new company that no one knows anything about. So, service providers register private limited liability companies in advance, let them age, and then sell them.
This is not the only scenario to make you choose this option. You can simply be at the opposite end of the world and want to have your own German business. Buying an already incorporated one is the simplest solution for you.
Bank account opening made fast
Any German company must have a bank account linked to it for financial operations, naturally. Except that setting up a corporate bank account is not that simple. Why? Because there is paperwork involved. When you have a shelf company, its age will work to your advantage, as it has a track record of submitting its annual financial statements on time. This procedure alone will save you time with this type of approach.
Variety of entities
Contrary to popular beliefs, shelf companies are available for sale in Germany in various forms, but most importantly in years of incorporation. You can buy a 1, 2, or even 3-year-old company, depending on your needs. All you need is to hire a professional to help and even represent you to make things as speedy as possible.
Increased credibility
A ready-made company will present more credibility to German business partners and even when you apply for a loan, for example. The reason behind it is the fact that an aged company will usually have a track record with the authorities, specifically the financial ones, which will also help you when seeking to enter one of the most competitive markets in the world.
These are some of the advantages of buying a shelf company in Germany. There are more things to know about such entities and the benefits they offer, which is why, if this article drew your attention, you should ask a specialized agency for details.