Should You Buy A Company Or Form A New One?
Running and managing your own business can provide you with great opportunity to make considerable profits. Choose an area that you specialise in, take on employees that will help you advance your business, and market your products or services to the most appropriate people, and you could become a successful businessperson. However, before you can do any of this you will need to establish your business entity – you can choose between forming a brand new company or you can buy a company which already has a trading history and a company number.
When you buy a company that already exists you do so to benefit from its trading history, if any is present, and the ease and speed in which you can start trading. You do need to ensure that it meets certain criteria before you buy, in order to ensure that there are no unknown liabilities. Buy a company with a certificate of non-trading for the greatest peace of mind and to ensure that you can start your business with complete protection.
If you want to start your business with the immediate ability to sell products or promote services then you can buy a company off the shelf and start trading immediately. When a company is formed it is required to have an Object Clause. This determines the type of business that company is involved in and it may mean that you are unable to conduct your chosen business without filing for a change of business type. General Commercial Object clauses mean that you can use the business for any type of commercial activity and these are ideally suitable when you are looking to buy a company for your own requirements.
One restriction to consider when you buy a company that already exists is the name of that organisation. You are obviously limited in the choice of names, but it is possible to have a name changed once you have bought that company. This means that you can still start trading as soon as you buy the company and you can have a name that suits your organisation and what you do.
CompanyFormations247.co.uk offers an extensive range of company formation services. Buy a company today and start trading today with our competitively priced, shelf companies.
