Ready-made companies represent an innovative approach to business. How are they different from classic companies and what do they have in common? How can they make it easier for you to start your own business?
What are ready-made companies?
The original term ready-made company or simply ready-made refers to a pre-established company. The Czech equivalent reflects quite well what is the essence of this type of business company.
This is a company that is established only for the purpose of its subsequent transfer. Therefore, such an entity has never actually developed a business activity and has no business history or obligations.
Such a “ready-made” company has all the necessary details required by law. It is registered in the commercial register, has a name, registered office, managing director, identification number and fully paid-up share capital.
Limited liability companies are most often sold in this form. These are the most popular in the country, especially among small and medium-sized entrepreneurs.
What are the advantages of a ready-made company
The main advantage ready-made firmy is a time saver. An entrepreneur can start a business within 24 hours after the initial contact with the agency. There is no need to wait for registration in the commercial register. You become the owner of the new company the moment you conclude the contract on the transfer of the business share.
Since the entrepreneur has to visit several different institutions before establishing a limited liability company, ready-made may be a more suitable solution for him, which will leave him room for the development of the business itself.
In addition, the alternative of establishing a turnkey limited liability company can also be considered. So it is again about the establishment of a company by someone else, but this time at the direct request of the future owner.
Another advantage of ready-made is that the company headquarters are usually located within Prague. This helps the business to gain prestige, especially in the eyes of business partners from abroad.
Ready-made has fully paid-up capital, which is also seen as an advantage when buying a ready-made company. However, be careful, this is only a formality and it is therefore necessary to pay it physically during the company’s operation or to make a credit against the future payment of profit.
How to choose a reliable ready-made
Ready-made is such a safe and fast way to start a business. However, it is necessary to choose a reliable agency, you can try, for example, Parkerhill agency.
The main risk of the purchase is that the owner acquires it with debts and burdens. At first glance, he may not be able to recognize from the financial documents that he is heading for problems with his future business.
So how do you know that the provider is not serious? The very low price should already be a warning. This must cover the administrative fees prescribed by law (notary and court) and, of course, the earnings of the company in question. You always pay for a carefree approach. Expect an amount of around 20,000 CZK.
In addition, it is important to request guarantees regarding the zero business history of the company. It should specifically be a statement of the statutory body about the company’s debt-free status.
