When you want to buy a shelf company, it can be very tempting to buy the cheapest one you can find. On the other side of the equation, not all shelf company providers are as reputable or transparent as others. Rather than take the risk of getting your business off to the worst possible start, it will be to your advantage to know how to spot companies to stay away from in Australia.
Company Has Few Options to Choose From
Here at (name), we know that different business niches and levels of financing mean that not everyone will want to start off with a corporate structure. This is why we have literally spent decades registering and vetting shelf companies to make sure that we have the widest selection of turnkey businesses for you to choose from. When you visit our site, you will notice that we have the widest selection in terms of:
ages of available companies. We know that the age of establishing a company can play a key role in securing contracts, licenses, and bidding arrangements. There is no substitute for registering a business in the right time frame if you expect to succeed today. Since we have been registering shelf companies for so long, rest assured you will not find a wider selection anywhere else.
Company structures that are ready for nice specific transactions. From construction companies requiring specific licenses, we have everything you need right on our site. Never worry about being denied the chance to bid on a proposal or apply for a loan simply because the foundation paperwork for your business doesn’t support these goals.
Little or No Information Provided Upfront About the History of the Company
In a sense, buying an existing business is a little bit like buying property or a used vehicle. If you don’t know the history of what you are buying, it can lead to all kinds of problems. Even though there are many types of title search and investigation related service offered for these kinds of purchases, it is still possible to miss something important. Sadly, this makes it far too easy for less than stellar shelf company sellers to avoid listing information that might make you decide to purchase a different company. Remember, when you are in a hurry to start a business and decide to buy a shelf company, it is not always easy to focus on all the details of a complete history search. This is one of many reasons why the reputation of the shelf company you purchase from is every bit as important as the history of the company you are buying.
When you don’t have full and complete information about the history of a shelf company, you can easily wind up dealing with leftover lawsuits, fines, and a bad reputation with clients and lenders. While you may be able to appeal your case because you were not part of these past dealings, it can still take an enormous amount of time, money, and energy that would be better expended on growing your business and developing your products. Here at (name), we only sell shelf companies that we have registered ourselves over the years and have maintained an unbroken chain of control over. If we do purchase an existing business to offer as a shelf company, we vet it carefully using the best tools available in the business tracking industry. We guarantee you will never get a nasty surprise related to another business owners mistakes or failings when you buy a shelf company from us.
Research Reveals the Shelf Company has Been Traded
At first glance, you may not be overly concerned about the fact that a shelf company has been traded for stock value in the past. You may feel that as long as you have all stocks available to trade, there is no harm done. As with the business’ reputation with clients and creditors, a company must also have a sound reputation with investors.
Consider a situation where the company has done poorly in the past, or the ROI was less than planned. You can rest assured that both known and potential new investors will be wary of buying stock in the company at a price that is favourable to you. This, in turn, defeats the entire purpose of using your stocks as assets for building capital.
Even though you can say the business is under new ownership, it may take time to prove things have changed enough to make investing worthwhile. On the other hand, when you buy a shelf company that has never been traded before, there is no history to worry about. An investor interested in your product niche may be more willing to invest in the unknown as opposed to going with a company that already has a track record for failure.
Buying a previously traded company can also have implications with the ASIC. While you may not want to give it much thought, ASIC is responsible for making sure that companies offering stocks conduct their activities in an ethical and transparent manner. This, in turn, means that ASIC uses a range of tools to try and spot illegal or questionable activities that might harm investors. If previous owners of a shelf company were disreputable, or were starting to raise flags at ASIC, don’t assume that this will change just because the company has a new owner. The very fact that the business has changed hands can trigger an audit, especially if filings for other agencies have some kind of problem that hasn’t been fully resolved. It simply isn’t worth your efforts to buy a previously traded shelf company, especially if this information was withheld in the description of the company.
Poor or Questionable Reputation
In many cases, you can get some good ideas about the nature of the shelf company you are buying by looking at the reputation of the seller. As an analogy, think about the process you go through when buying a car some other high priced asset that you plan on having or using for some time. Chances are, there are some dealers or sellers that you won’t buy from, even if they have exactly what you are looking for. For example, if you are looking for a specific used car model, and you find it at two dealers, you probably won’t buy from the one that has a bad reputation because you know you will have endless problems later on.
When you buy a shelf company, a seller with a bad reputation may not have properly vetted the company, or may not have kept up with all the filings required to ensure the company is in compliance with all government guidelines. To add insult to injury, when you buy a shelf company, your personal and bank related information may not be kept properly on the sellers computer system. This, in turn, can lead to a situation where you have to deal with identity theft on top of any number of legal and tax related issues caused by an improperly maintained shelf company.
No Additional Services Available
In many ways, buying business is like buying a car or a home. Once you own the business, you can’t simply just run it and not do any maintenance. With regard to a business, you will need to file periodically with the government to report on the income generated by the company as well as it’s projected capacity to remain solvent for an additional period of time. There are also many other filing, tax, and stock related reporting requirements that you will need to be able to manage properly and professionally.
Chances are, if you don’t know how to change the oil in your car or service a heating system prior to engaging it in the winter months, you will call a professional to do the job. In fact, even if you know something about these tasks, you may still seek out the help of an expert in order to avoid violating warranties associated with costly or long term purchases. From that perspective, simply buying a shelf company without consideration for reporting and other government interface needs can cause serious problems in the long run. Sadly, when you buy a shelf company from a seller that offers only this service, you can easily be misled into thinking you can take care of the rest on your own. Rather than take this kind of risk, you are better off buying a shelf company from (name), and then add on professional services that will ensure your company remains in compliance with all federal, territorial, and local guidelines.
Once you experience buying from a good quality shelf company, you will never be fooled by one that will sell you a less suitable product and services. That all being said, if this is the first time you have purchased a shelf company, or you have had problems with other sellers in the past, it will be to your advantage to give (name) a try. Just visit our website today to find out more about our extensive services for shelf companies and managing the business after you have the founding paperwork in hand.