Is it worth buying a ready-made company in Luxembourg or registering a new one?

It is profitable to buy a ready-made company in Luxembourg or start a business from the beginning. Luxembourg is an attractive jurisdiction for business and investment, with high GDP per capita. It is believed that it is easier for foreign investors to buy a ready-made business. To learn more about the nuances of registration, please contact our specialists at IT-OFFSHORE.

What is more profitable - a ready-made business or a company THAT NEEDS TO BE ESTABLISHED FROM SCRATCH

Before opening a company in Luxembourg in 2021, it is important to decide whether it is better to register a company yourself or to buy a ready-made one. Buying a ready-made business is relevant for entrepreneurs who want to start their business more quickly.

Registration of a new company may take more than 2 weeks, provided that all documentation is prepared and signed. When buying a ready-made business, you can start working in 2 days after handing over the company to the owner.

Ready-made businesses are often preferred by businesspeople who need to urgently formalize the ownership of the company and miss all stages of opening. It is possible to buy old enterprises or new ones. Previously operating firms already have a corporate image, and it is easier to get credit for entrepreneurship if there is positive credit history.

Pros and cons of ready-made business

When buying a ready-made business, investors have access to a loan application. Most often banks approve loans to existing companies, as they see a positive credit history and no debts.

An enterprise can be transferred on average in 1-2 days. What an investor needs in addition to the business itself:

• Articles of Association;
• Office;
• The data confirming the registration;
• Package of documents necessary for conducting business.

After that, the procedure of appointing the management is performed, and the name is corrected if necessary. To buy a ready-made company, you do not need to go to the country, which is a significant advantage over a new company. However, when buying an off-the-shelf business, it is advisable to request an inspection in order to detect the presence of debts and other liabilities in a timely manner.

The ready-made company has an established business history, and the purchase may be helpful for concluding contracts quickly. The presence of business history facilitates the process of obtaining a loan.