To start your business, you must open a new company or buy a shelf company in Dubai. The shelf companies are also known as shelf corporations, ready-made, or aged companies.
It is a legally registered company that has no activity. Anyone can buy it to bypass the tedious registration or incorporation process.
So, if time is a constraint for your venture, a Shelf Company can be the best option.
Buying a Shelf Company Instead of a New Company in Dubai
For business setup in Dubai, there are different types of Shelf companies. Choosing the right one is based on the suitability of the business.
Choosing the Right Shelf Company and Advisor
It entails risk if the shareholders' history, bank records, debts, etc., are not checked properly before transferring the Shelf Company to the business owners. It is advisable to speak to our consultants before the selection process.
It is important to understand the charges, time, and other requirements for owning a Shelf Company.
Benefits of a Shelf Company
The advantages of buying a shelf company are as follows:
1. Saves Time and Cost
It saves the time and expense of forming a brand-new corporation.
2. Provides Easier Access to Capital and Credits
Potential creditors or business resources are more likely to extend credit or lend to an established company rather than to a newer corporation. The business will also have more access to credit lines, leases, banking relationships, and investment capital.
3. Does Away with the Waiting Period
Owning a ready-made company allows you to engage in business credit or real estate agreements as an established company without going through the long waiting period of establishing a brand-new corporation.
4. Gives Instant Access to Contracts
Some UAE government bidding processes require that your company be in business for a specified minimum. Buying a ready-made company becomes advantageous if a new company wishes to participate in such bids.
5. Longevity and Operating History
An aged company provides established longevity and operating history, making building the corporate image easier.
6. Eases the Documentation Process
The longer the registered corporation, the easier the access and processing of business visas and company documents for the organization members.
How to Buy a Dubai Shelf Company?
According to our consultants, the key to buying a shelf company in Dubai, UAE, is ensuring you keep your due diligence in order. Why? That's because an offshore business is not subject to financial reporting requirements.
Evaluating a shelf company for sale is more challenging than in a jurisdiction with a financial reporting requirement. Let us understand the simple steps of buying a shelf company in Dubai.
1. Decide on the Jurisdiction
The first step to buying a shelf company is choosing a shelf company either onshore (mainland) or in the free zone. Depending on where you want to carry out your operations and if you are aiming to serve the Emirati market or the wider region, you will want to look for a shelf company where you want to set up.
The most common type of corporate entity is the Limited Liability Company in Dubai, also known as an LLC. Another feature of Dubai companies is that you must apply for a license that covers the activities you plan to carry out in your business.
If you are interested in purchasing a shelf company in a Free Zone, you must decide what Free Zone permits your chosen business activity. Most cases do not allow you to transfer a company's domicile from one Free Zone to another.
2. Proceed with an Expert Like Commitbiz
We believe it is better to go ahead and open a new company in Dubai since new company formation is streamlined in most cases. Nevertheless, should you opt for the shelf company route, we need all our customers who acquire shelf companies to pass a previous test that our due diligence specialists perform.
Why do we insist on such a high standard of quality? That's because full compliance is a hallmark of our service and we want to ensure that you are aware of all possible liabilities since there is no accounting requirement.
These outcomes, whether financial or otherwise, could go into an acquisition beyond the records you could find in the list of shelf businesses on the UAE Companies register by checking the business name.
An expert partner like Commitbiz will look into the entity's context and perform a comprehensive check of the shelf company's financial and credit history so you know everything behind the shelf corporation you are about to transfer into your name.
3. Make the Necessary Changes
Before you can begin full trading once the company is purchased, you must complete some final steps to finalize the company registration process. You will have to amend the Memorandum and Articles of Association to reflect the names of your enterprise's new shareholders and directors.
If you would like to change the trade name, this is the moment when you can choose to modify it. Then, as we mentioned before, you'll also have to apply for the relevant business activity licenses so you have the authorization to run your business as you wish.
Once you favor a Shelf company, our specialists will verify the company’s legal address, fee structure, corporate bank account, directors’ addresses, and all necessary certificates and permissions. Our evaluation method takes special care to check that no existing liabilities are passed on to you after a takeover.
We will also provide you with all the legal advice on every matter related to acquiring the company. We will ensure you don’t pay a significant premium for developing a ready-made company.
Once the credentials are soundly established, we will assist you in your negotiations and in the transfer of ownership. To sum it up, Commitbiz will register the shelf company and keep it ready for the buyer.
Besides ensuring fast and simple acquisition, our services offer the following advantages:
- Profound experience in helping offshore companies acquire breathing/existing/live companies in Dubai
- Expert Guidance
- No liability risks
- No debts or obligations
- No previous business activity
- Registration in the commercial register.
Do you wish to know more about purchasing a ready-made company in Dubai / UAE? Please Contact Us now or write to us at [email protected].
What is a shelf company?
A shelf business is a ready-made company that has previously gone through the required incorporation procedure in the jurisdiction but is not active until it is purchased—hence the term "available for purchase."
What is the prime advantage of purchasing a vintage company?
The biggest advantage of buying a shelf business is that you can start operations sooner because you are transferring personal information from the corporation that founded the new shelf company to your name. It speeds up the company formation procedure compared to starting from scratch.
Which jurisdictions to consider if intending to buy a shelf company in Dubai?
You can purchase a shelf company either on the mainland or in the free zones.
Which is the most common type of Dubai corporate structure?
It is a Limited Liability Company in Dubai.
What are the other necessary changes besides amending the MOA & AOA while buying a Dubai vintage company?
You can modify the trade name, apply for relevant business licenses, etc.