Before considering all the details regarding the opportunities, advantages, disadvantages, and limitations of buying a ready-made company in the UAE, it is worthwhile to clearly distinguish between two main types of companies in the UAE – offshore and onshore ones. Each type has its pros and cons. In this review, we will try to consider all possible reasons why you might need to purchase a ready-made company and give an answer as to which solution is the best.
First, let’s look at the list of advantages and disadvantages of buying a certain type of a company with an account. As far as the benefits are concerned, you are purchasing a company with a history that can look more prestigious in the eyes of your partners. One of the main disadvantages is that certain risks may arise in connection with the past obligations of the company or due to the activities that contradict existing regulations. At the same time, there are no solutions that can exclude such risks without an obligatory and rather costly verification procedure. This means that purchasing ready-made companies requires a detailed full check. And this is rather time-consuming and pricey.
As for onshore one, especially if such a company requires a special license and it takes time to obtain it while you need this particular license, its acquisition can have a point in some cases. Purchasing it, you can save your time. However, it is very important to perform a full check of the company.
As for an offshore company, buying it makes sense only in specific cases, for example, if the company has a name that you extremely like. There may also be other reasons. At the same time, when you buy a ready-made offshore company with an account, you don’t save any time. The reason for this is the fact that re-registration of an existing company with a new owner takes longer than the registration of a new one. At the same time, it is important to note that when the owner changes, banks are required to close an existing account, and after completing the re-registration of the company, new documents are to be submitted for opening a new account. For this reason, it is impossible to reduce the time required for opening an account if you buy an existing offshore company.
As for closing an account and opening it again after the change of a shareholder, this regulation applies to both offshore and onshore companies. For this reason, buying a ready-made company in the UAE together with a functioning bank account is impossible.
Buying a Ready-made Company in the UAE with an Account – Looking for an Answer about the Reasons
Sometimes we receive inquiries from the customers willing to buy ready-made companies in the UAE with history because in their opinion it is easier for such companies to get a loan. In fact, this is not quite like this. When considering an application for a loan, banks look at the company’s accounting, as well as the structure of shareholders, and how it has changed. If the shareholders of the company have changed, the bank does not consider the previous history of the company when assessing its credit capacity. The only exception is when you are actually buying a real business with existing personnel, assets, etc. In this case, the previous history of the company may be considered by a bank, but with additional caution and discount factors.
So what is the solution when it comes to buying a ready-made company with an account in Dubai, the UAE? In this case, we are not talking about buying a company with a real business. The answer is simple – register a new one and open an account for it. And to resolve this issue rapidly and with minimal effort on your side, simply get in touch with our consultants and after a short time (for some types of companies it takes just 2-3 days) you will have a ready-made working company and, after some time, a bank account.
Here are some undeniable advantages of registering a new company over purchasing a ready-made one:
- This company has no risks from its past activities;
- The name of the company is the one you need and want;
- There is no confusion and complexity regarding the documents, for this reason, it is easier to open an account.
And of course, the price is one of the most important factors. In almost all cases, registering a new company is cheaper than buying an existing one. As for the existing company and its acquisition, its cost is determined by the seller; plus you have to pay the cost of the government fees for ownership re-registration, the cost of the legal due-diligence of the company’s status with a possible interim balance-sheet, as well as professional assistance in the ownership re-registration process.
Write to us if you want to buy a company in the UAE – and your company will be made especially for you key-ready.