Buying a Readymade Shelf Company in China
Since it takes a lot of time and effort to register a new company, some entrepreneurs may need to incorporate a company urgently and then sign contracts or conduct other business in the company’s name. Therefore, professional business consulting services usually pre-register a large number of companies for sale. Or there are some companies that may be registered, but due to various reasons, they do not really carry out business activities or are terminated midway and become dormant companies that need to be resold as soon as possible. This type of company is called a “ready-made shelf company.”
The characteristics of a “ready-made shelf company” are that no directors are appointed, no shares are subscribed by any investors, and no operations or debts are incurred. But the company has already made the legal documents, like the official seal and stock certificate, so the buyer only needs to provide the required documents and can use them right away without worrying about hidden risks.
Process of Buying a Readymade Shelf Company in China
You are advised to first find a professional company share transfer platform, select the company you want, and check if the ready-made shelf company for sale has the following criteria:
- There are legal risks, especially the chance of misrepresenting registered capital, making a false capital contribution, or taking registered capital out of the company
- The existence of claims and debts; the transfer of some ready-made shelf companies after bad operations; and the possibility of latent debts
- Companies that do not generate business behaviour should file a zero-tax return; otherwise, they may be blacklisted by the tax department.
Next, the buyer and seller should negotiate on the price, and after reaching an agreement, the share transfer contract can be formulated. After the transfer contract is made, it is best to get a law firm to notarize it to ensure that the process is legally valid.
Finally, after both parties reach the intention of transferring and sign an agreement, they should go to the Industrial and Commercial Bureau, the Quality Supervision Bureau, the Taxation Bureau, and other departments for the transfer procedures in a timely manner.
Documents will be obtained after the purchase of a ready-made shelf company in China.
- Certificate of company registration.
- The certificate of commercial registration
- The Articles of Association of the Company
- A steel seal of the company.
- A company signature seal.
- A small round seal of the company
- A copy of the share certificate
- A copy of the statutory record book
- A notice of appointment of the first director, a notice of consent to act as a director, a notice of registered address, etc.
- A verification document from an accountant.
A good company share transfer platform can simplify the process of transfer and acquisition, not only to match the most suitable acquirer but also to effectively increase the value of the transfer. 3E Accounting has a lot of experience in the field, so they can give you the best service.
