The UAE provides a second option for entrepreneurs to acquire an offshore company. This is by purchasing an existing offshore company. In this article, we will be discussing in detail this second option.
An existing UAE offshore company also called a ready-made company is a company that has been set up and established in a UAE offshore zone. It is perfect for investors who intend to begin business operations as soon as possible without having to go through the formation process of a new company.
A legally recognized established offshore company must function as inactive corporate units, must have a license, and must be able to undergo modification as required.
How do I choose the right existing offshore company?
There are several established offshore companies out there so choosing the right one may be a tough decision to make.
The following are to be considered before buying an existing offshore company:
- The Sales Blueprint
It is crucial to evaluate the overall sales of the company at periodic times and study the rise and fall over time. This could be a pointer to the efficiency of the business. It also helps to estimate the sales of the business in the future.
- The Seller’s Reason for Selling the Company
This is key to choosing the right company. You are advised to ask the seller of the existing business his real reasons for selling the company to avoid facing the same challenges assuming they are selling it off because of challenges they faced.
- Legal Agreements
All legal documents and agreements must be screened through and through to avoid legal problems in the future.
- The Staff
It is advised to know who the employees are, their working relationships, and all signed contracts to enable you to create an efficient team at your company.
It is crucial to ensure that the company you are looking to buy is free from debts. You are also advised to consider past risks and the shareholders in the company.
What are the advantages of buying an existing offshore company?
The following are some of the advantages of buying an existing offshore company:
- It saves time and cost
An existing business saves you the time and cost of establishing a new company. You do not have to wait a long time or spend too much thereby allowing you to focus on the crucial things.
- It offers easier access to capital and loans
Existing businesses are more likely to get loans from financial organizations, partnerships, leases, and find investors and investment resources.
- It grants you access to agreements
Some legal and government agreements require your company to have been established and been in operation for a specific duration.
- It eases the documentation and registration process.
Buying an existing offshore company speeds up the documentation and registration process thereby allowing you to get to business as quickly as possible.
How do I buy an existing offshore company in the UAE?
- Choose a name for your organization
- Fill your business application and Articles of Association (AOA)
- Send the required documents and correct records to the business registry.
- Pay the required fees.
- Once the transaction is completed, all documents regarding the company formation will be provided to you.
- You are expected to get your certificate of incorporation within 2-3 working days after the process is completed.
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