Ready made company-Advantages & Disadvantages!

Sep 21 18:02 2019 Richard Ford Print This Article

Do you want to start-up on your own! Then you might have come across the line Ready made company. Here all you need to know about a ready made company. What is it's benefits or disadvantages, Should you really give it a go! 

Buy a Ready Made Company

If you want to start up a business of your own or want to expand your business overseas then buying a ready made company is one of the most popular options that come in mind.

But before going any further,Guest Posting you must carefully analyze all the positive & negative points that you may encounter with after purchasing a ready made company. Being a successful business consulting farm owner I can point out a few advantages & disadvantages of buying a shelf company. It is also referred to as Shelf company.

Now, what is a ready made company?

A simple answer could be, it is a company that is already registered at companies house. But the thing is that even it is preregistered but it has no previous record of trading. So all you need to do is simply grab a company & start trading.

Advantages of obtaining a ready made company:

Start from Day 1: The first & foremost advantage is, being pre-registered you can start your business from the very first day of owning it. Though its sounds crazy but it is the fact, and the reason behind this popularity of ready made company is everyone wants to start their business immediately. So, if you are in a hurry & want to start your business straight away then it is the best option to choose.


Saves a lot of time: What is the most valuable resource in this Universe? The answer to this question is simply "TIME". Time is the most precious resource of this universe.

One of the features of a shelf made company is it saves a lot of time. As it is pre-registered so you don't have to go through all the complicated processes of documentation & legalization or any other things involved in starting up a new business. This is the reason why it outsmarts of starting a new one.


Easy Bank Loan: Business & loan these two terms comes handy. Any businessman whether a small or big at some point requires a loan to expand their business or to include a new opportunity to his business. Here also a shelf company has a little advantage over registering a completely new business.

The thing that works here is that a ready made company was registered or established a number of years ago. That simply implies that the company has been running from the year of establishment.

This impression of longevity which a ready made company can create is another feature that helps a businessman to get a bank loan in an easier way. Any bank would be ready to pass a loan to such business farm.

Inexpensive: It is a fact that if you want to start a business you got to have a lot of capital to invest in it. Especially at the initial stages. Unlike in the case of ready made company, where it is a hell lot inexpensive compared to starting a whole new business.


Ads Credibility: Every business needs investment. whether it's through a bank loan or through investors, sometimes even both. So just like the banks, it also helps you to convince the investors.

Basically the experience of running a business for years adds credibility to your business, hence influences investors to invest more on your business.

These are the basic advantages of ready made company.


Disadvantages of Ready Made Company:

As there are so many advantages of having a ready made company, there are certain disadvantages too. I am mentioning here a few.

Name is Fixed: This may be disappointing for many. You just can't change the business name of it, as it is already registered at companies house with a specified one. But if you believe the line "What is there in a Name" then you can definitely go for this.

Previous Debt: Many time it was found that a ready made company has some previous debt or other legal obligations, after purchasing. This is what you should always take care of, as it may lead you to compensate heavily.

Tough this can be avoided if you have deep knowledge or hire a reputed business consulting firm.

These could be some disadvantages of ready made company.

Now it is up to you if you want to buy a ready made company or not!

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About Article Author

Richard Ford
Richard Ford

Hey, Richard here. I am working in business consulting and a mentoring firm named Startup Formations. We can help you to set up your own business in European countries like UK, USA, etc. Our company offers the best company registration service, business account creation, speedy company formation in the UK, high-risk merchant account service, business mail forwarding at the most affordable price. If you're interested, you can buy a ready-made company with a bank account at us. Other than my work, I love to do blogging also. My aim is to help startup companies and entrepreneurs to become successful by serving business setup Ideas, strategy consulting, financial advisory services, etc.



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