Ireland is keeping the title of one of EU’s most attractive business destinations for multinational businesses and budding entrepreneurs alike. In 2021, CRO reported about 25,468 newly registered companies. Twitter, Google, Facebook, Airbnb, PayPal continue collecting benefits of running headquarters in Irish capital. When it comes to owning a company in Ireland, you can either register a new business following the standard registration procedure, or choose to buy a company in Ireland that’s ready-made, also known as a shelf company.
The process of company acquisition in Ireland can often be long and complex, however, has a range of set benefits over Irish company formation from scratch. This blog post explains the basics of buying a ready-made company in Ireland namely the types of company acquisition, and the benefits of getting a shelf company followed by working out all the details required for a smooth purchase.
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Types of Company Acquisition in Ireland
Buying a company’s securities: This process involves purchasing stocks, bonds, or other financial instruments that represent ownership in the company. By acquiring a majority stake in the company, the buyer gains control over its operations and decision-making.
Taking over the company shares: This method entails the transfer of ownership of the company’s shares from the current shareholders to the new buyer. The buyer then becomes the legal owner of the company and assumes responsibility for its operations.
Benefits of Purchasing a Ready Company
When it comes to the benefits of purchasing a ready-made company in Ireland over making a fresh start. From accelerated launch to increased credibility, plenty of other compelling reasons exist to get a company in Ireland for sale. Here they are.
Avoid Registration Hassle
By buying a company in Ireland, you also acquire its trading name, company bank account, statutory documents, company director, VAT, and tax numbers. This saves you the time and effort to complete the registration process yourself.
Commence Activity Immediately After Purchase
Once you’ve purchased a ready-made company, you can begin conducting business activities right away, without waiting for lengthy registration procedures.
Obtaining Bank Loans is Often Easier
Local banks tend to be hesitant when it comes to lending to newly incorporated companies. However, businesses with an established history are more likely to secure a loan from an Irish bank.
Enhanced Contracting Opportunities
Certain contracts may require your company to have a specific age or track record, which can be easily met by buying a ready-made company in Ireland.
A company’s reputation tends to improve with age. By carefully selecting a well-established company, you can gain a competitive advantage without having to build a positive corporate image from scratch.
So, if you’re looking to establish a business in Ireland, consider the benefits of buying a shelf company in Ireland. This can be an excellent opportunity to gain a foothold in the dynamic Irish business landscape.
Step-by-Step of Purchasing a Company in Ireland
A ready-made company in Ireland is a winning decision that need careful consideration. Below are essential legal steps one should make toward a successful deal.
Determine the Legal Structure of a Company
Decide whether you want a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation. Each structure comes with its own legal and tax implications, so it’s essential to choose the one that best suits your needs.
Review Financial Statements of the Company
Examine the company’s financial statements to assess its profitability, liquidity, and solvency. Request the company’s income, balance, and cash flow statements. Verify if there are any outstanding debts or liabilities, such as loans or legal claims, as the new owner will be responsible for the company’s debts (up to the value of their shares). Avoid purchasing a loss-making business or one embroiled in litigation.
Check the Company’s Employee Contracts
It’s crucial to have a clear understanding of the company’s employee contracts, working conditions, number of employees, and their salaries. This not only helps you grasp the operational aspects of the company but also ensures that you avoid potential labor law violations in the future.
Verify if a Company Owns any Forms of IP
Take the time to determine whether the company owns or licenses any intellectual property, such as patents, trademarks, or copyrights. This knowledge can provide you with a better understanding of the company’s assets and potential growth opportunities.
Complete Due Diligence Procedures
Conduct a thorough sanctions check on the company, its directors, shareholders, and beneficial owners (up to ultimate beneficial owners). It is vital to know the company’s background and ensure that there are no hidden issues that could impact your investment.
Negotiations with Current Company Owners
Engage in open and transparent discussions with the current company owners. Work together to draft a mutually beneficial sale-purchase agreement that addresses all necessary legal and financial aspects.
Concluding the Transaction
Both parties sign the sale-purchase agreement which marks the closing stage of the buying process. If applicable, pay the required stamp duty to Revenue to finalise the transaction.
Customising Company to Serve Your Needs
Once the transaction is complete, make the necessary changes to tailor the company to your needs. This may include changing the company name, updating information about company officers and shareholders in CRO and RBO, amending the constitution if needed, changing the address, or updating ownership information in payment systems (if any are already opened). Embrace the opportunity to shape your newly purchased company in Ireland to align with your vision and goals.
If you’re looking for a ready-made company to acquire, contact Chern & Co. Our consultants will assist you in purchasing a company that best serves your entrepreneurial goals and budget.
How Much Does it Cost to Buy a Company in Ireland
The cost of buying a company in Ireland depends on factors such as the company’s age, legal structure, share capital, VAT registration status, other tax registrations, and the existence of payment systems or bank accounts. Make sure you take these variables into account when budgeting for your acquisition, as they can greatly influence the overall expenses of buying a business in Ireland.
Wrapping Up – Buy a Company in Ireland
Embarking on the journey to buy a company in Ireland can be both thrilling and challenging. By taking the time to understand the various aspects of the acquisition process, seeking professional advice, and carefully considering your options, you’ll be well-equipped to make a wise investment. As you pursue this exciting opportunity, remember that the company you acquire will serve as the foundation for your future success. So, seize this chance to create a lasting legacy and make your mark on the vibrant Irish business landscape! Allow yourself to dream big and be the proud owner of a company for sale in Ireland that holds the key to a bright and prosperous future.