This one is for the start-up guys or the veterans who want to steer clear of the pains of starting a Company from the scratch.
To lay down the steps for you, forming a Company, Listing it, getting all the licensing for it, building its goodwill, getting trademarks other IP registration for it, so many permits and legal expenses.
It takes a week to form one and around 25K in legal expenses.
Many of our clients have companies and LLPs with them which were formed for doing some business, but due to the project not taking off or due to some differences with the partner or any other reason, the company did not take off.
What to do with this?
There are people out there waiting to buy such companies, which are called as dormant or shell companies.
They buy these companies because
a. If a formation costs 25K, the buying of an existing Company costs 10K (15K pure saving)
b. Ready goodwill
c. All permits and licenses in place
d. All registration and licensing done
e. Business can be commenced from day one
What is the Procedure?
a. Change the Memorandum and Articles (through alteration)
b. Change the Shareholders (through share transfer)
c. Change the Directors (through appointment & Resignation)
Voila, you have your own company! All tailor made one you know.
You can further buy such companies from your industry (That’s shrewd)
For e.g., we have a client who has more than 5 dormant construction companies with him, which never took off. Every year, the filing for the same was done and the records are up to date. He’s looking to do away with it as winding up the company is a long drawn process and the fast track exit scheme is possible only if there are NIL assets and liabilities.
It’s picking up big time and a great opportunity to grow faster!
Tags Corporate Law