Most of the time, foreign investors want to improve the chances of obtaining financing, reputation, and sales for their startups in Vietnam in the shortest time. In that case, they may resort to buying a shelf company in Vietnam to expand the opportunities for their new ventures.
A shelf company is also known as an aged company. It is an entity that was formed earlier but not in use. Many also call this type of company a ready-made company because they are set up previously and ready for purchase by new owners.
A shelf company is the quickest way for entrepreneurs and business owners to establish their companies without putting themselves in the exhausting and time-sucking process of setting up a new establishment.
The age of the shelf company not only contributes to the positive perception of the company but also the key to credits when it comes to financing and gaining clients.
How can Your Business be Helped by a Shelf Company?
The major benefit of a shelf company in Vietnam is that it enables you to operate your business right away without going through the procedure of setting up a new entity.
Other common benefits that can help businesses are in the following:
- Building a relationship and gaining new suppliers
- Saving time due to the ease of the process
- Running your business immediately
- Securing business contracts
- Showing corporate longevity, attracting new customers and investors
- Enhancing client’s and investor’s confidence
- Gaining bank and credit approval
Why should You Buy an Existing Company over Establishing a New Company?
The speed of availability of an existing shelf company is the crucial factor contributing to so many other benefits.
Here we will elaborate further why you should choose a shelf company in Vietnam over setting up a new company:
- The company registration process timeline for a new company in Vietnam is much longer than purchasing an existing company, about 14 working days, provided that all submitted documents are valid and complete.
- Since the company is brand new, it will take the business months, or even years to build a strong network and credibility.
- A lot more steps are involved in the incorporation process of a new company compared to purchasing an existing company. These additional time-consuming steps are license application, bank account opening, and other paperwork.
- A brand new company may have trouble gaining access to credit and bank approval since the business is lacking history.
- A new company may be forbidden to perform certain business activities until the company has obtained relevant business and operational licenses. Also, these licenses require significant time for its application, submission, and approval.
Before acquiring an existing company in Vietnam, all relevant documents will be made available to you to confirm the eligibility and legal compliance of the company.
Then, once you have purchased an existing company, Cekindo will support you to do the procedure to transfer ownership as soon as possible according to the Vietnamese regulations. Firstly, Cekindo will draft an authorization letter between the owner of the existing company and you. Within a week, you will be registered as the legal owner of the company. Click here for Cekindo’s full portfolio of Company Registration Services.
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