Purchase Ready Company with an active bank account VS New Company registration – What is better?
Need to start your operation in the UAE as soon as possible? Thinking of buying an existing company with an active bank account in the UAE? Then this article is for you! Read carefully to decide whether this will be a good decision.
- Find a company license which will suit your business activity.
If you are in a trading business, it will be easier for you to find a company with a General Trading license. This license will cover any trading activity (except gold and some other goods as it requires a special license) within the UAE.
If you would like to purchase a ready company with a specific service activity, for example IT Consulting, it will be hard to find on the market this specific one. There is a solution – find any service company and then change or add the activity.
- License Amendment.
If you thought that to buy a ready company will be cheaper than incorporate a new one, then we can tell you that you were wrong. In practice, it will cost you the same or even more. Why? This is because there are legal fees associated with a transfer of shares, appointment of a new manager, director and secretary, as well as changing bank signatories.
Free Zone Authorities will charge you for the share transfer about AED 2500- 4500 (USD 1135-1235) depending on the Free Zone, additionally for a new appointment of Director/Manager/Secretary – about AED 1,500 (USD 410) for each change. Therefore, all changes will come to the amount AED 9,000 (USD 2500) which will be additional cost compared to the registration of a new license.
You also need to think about the timeframe for this process. As you are in hurry to use you newly purchased license the timing may disappoint you. Usually it takes 1-3 weeks of a Free Zone to issue a new license. It may take less days to incorporate a new company rather than to make changes to an existing license.
- Active bank account for – practical reality
To have access to the bank account you will have to arrange a visit to the bank to add on a new partner as a signatory and get the online access to the account. For some banks it will be very easy and can be done over the phone, for other – a personal visit will be required. You need to prepare your new and old license as well as a sale purchase agreement and personal documents of all signatories added, passport copy, visa page and Emirates ID.
This is totally a decision of the investor to go for a new registration or buy a ready-made company. There are advantages for both options as well as disadvantages.
Contact Global Link to get an advice on a purchase of an existing company. We also have several ready companies with a bank account for sale! Please send your enquiry to Global Link today as companies for sale do go fast!