One of the powerful ways to ease an entrepreneur's incorporation of a company is purchasing a shelf company in foreign countries. Like any other establishment, the chance of misuse and misshapes occurs in incorporating a new company. Yet, the risk of these factors can be decreased by selecting a reputable shelf company in accord with the purchasers' requirements. Rather than going through the registration process, Turkish laws also enable foreign investors to possess a ready-made company. The procedure for buying a shelf company in Turkey is regulated as per Turkish laws.
This article will demonstrate the process, procedures, and benefits of buying a shelf company in Turkey by analysing the concept.
Definition of Shelf Company
A legal entity established with no assets and liabilities en masse and managed by the service provider until a buyer is found, commonly known as a shelf company. Further, a shelf company must remain unused on the shelf until the purchase. In light of this fact, the seller must prove that the company does not have any obligations on its own as the primary purpose of the investment is to incorporate a firm that bases its infrastructure on an unused platform. Indeed, since the company's ownership is transferred to the third person after the acquisition, the third party can start with trading purposes arising under their contracts.
Amenability for Purchase of a Company
In terms of amenability, Turkish Company Law does not impose any kinds of restrictions on the nationality of those who desire to buy a shelf company in Turkey. Any legal entity or natural person is amenable to purchase a ready-made company grounded on the certificate of registration for the company that will buy a Turkish firm or the passport of the person signing the agreement for the share transfer at the office of a public notary.
Process for Buying a Shelf Company in Turkey
Quick safari research does enable buyers to find relevant sources from all over the world, including Turkey. After taking over all rights and liabilities of the new company, a new company owner can establish any changes to the firms' structure and culture after notifying the Trade Register from Turkey. Furthermore, as shelf companies were registered with a standard constitution, with the consent of the new acquire, the new holder can incorporate or establish necessary changes to its constitution regarding their ownership.
These changes could apply to; transferring the shelf company's shares to the nominated purchaser, changing the registered address of the company to a new address that the purchaser chooses, changing the current directory to the new directors that the purchaser appoints and changing the name of the company to a name the purchaser chooses.
Consideration of Cost
Generally, the prices of a shelf company increase due to its longevity and age since an older company requires more management alongside assets and expenses. Moreover, the older the company, the more statutory fees the supplier will have paid prior. Regarding these facts, buyers should get an old company as their needs to be more efficient and speedier.
Benefits of Buying a Shelf Company in Turkey
The grounds mentioned below have potential benefits, both to buyers and third-party suppliers. Thus, foreign investors or buyers should not disregard the ideal approach for materialising a new company under the incorporation of a shelf company.
Speed
One of the efficient benefits of purchasing a shelf company is the notion of time. As a shelf company has been registered already by the previous owner, it is not time-consuming, meaning that the subsequent acquirer does not need to go through the process of forming a new company. Acquiring does solely necessitate the contract formation, notification to relevant instructions, and, if requested, alteration into the structure of companies.
History of the Company
The company might already have a history when the transaction is completed, connoting that this process can simplify the further bank transaction in the future as some bank providers do necessitate a good background. Thus, acquitters must double-check the backgrounds of the shelf companies before purchase.
Name
It is generally firm to contemplate a good name for a company. In this case, investors can select a ready-made company – shelf companies. If a young shelf company has been selected, they will probably pay the same amount as the new incorporation. Instead, if an investor is worried about the company's brand and solely desires a reliable company, any company on the shelf list can be chosen.
Longevity
Aged shelf companies propose longevity, demonstrating that the sellers have systems in place to keep a company alive for many years. It will be apparent that statutory requirements have been met for several years and that the seller will attend to future statutory needs.
Certainty
The subsequent owner can network and utilise from a client armed with a shelf list, knowing that the client is definite to get one of the selected names. This works better the longer the shelf list as there is less chance that the chosen companies would have been sold by the time you revert to the seller.
Better Privacy and Lower Personal Liability
A business owner might sign a contract in his name only to later realise, perhaps after discussing with his accountants or lawyers, that it would have been better to avoid personal liability if a company had been used instead.
Essentially a shelf company can merge the business owner's history with that of a company so that the shelf company adopts the business owner's transactions and obligations. In this respect, the personal liability of the new owner's decreases as the acquitter adopts the ready agreements and business plans.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
