Is acquiring a defunct company better than starting a new one from scratch?
Payments
Asked by Question Bot07/May/20131 answer
1 Answer
F
Faisal Khan
Answered 07/May/2013
My guess is you're looking at a UK based company (since you cited the words chartered accountant). Buying shell companies or previously registered defunct companies does have its advantages, etc. You can always cite, you are "X" many years old (which is in some manner true). You can also buy an old company and rename it.
If you do work in the public sector, an older, registered company has easier means of pre-qualifying for work (many UK based government, semi-government organization require that in order to bid, you need to be X many years in business).
There are procedures to absolve yourself of any previous claims/debts (its done via a publicly published notice, that your solicitor will type up - pretty much a very vanilla draft). Unlike the US, incorporation in the UK is slightly more involved and costly.
A previously registered organization would also come ready with your Tax registration and VAT registration, etc. all which does save money and time.
Best option is as follows (if it is possible at your end). Ask your CA for table-comparison between the two (fresh registration vs previously registered). You might also want to get a second quote from a different CA.
Also, ask her explicitly (in writing) to provide you with all the risks associated with the previous business and how to obtain a carte-blanche absolution from all previous business done on that company, prior to the date you took ownership.
If you do work in the public sector, an older, registered company has easier means of pre-qualifying for work (many UK based government, semi-government organization require that in order to bid, you need to be X many years in business).
There are procedures to absolve yourself of any previous claims/debts (its done via a publicly published notice, that your solicitor will type up - pretty much a very vanilla draft). Unlike the US, incorporation in the UK is slightly more involved and costly.
A previously registered organization would also come ready with your Tax registration and VAT registration, etc. all which does save money and time.
Best option is as follows (if it is possible at your end). Ask your CA for table-comparison between the two (fresh registration vs previously registered). You might also want to get a second quote from a different CA.
Also, ask her explicitly (in writing) to provide you with all the risks associated with the previous business and how to obtain a carte-blanche absolution from all previous business done on that company, prior to the date you took ownership.