Buy Incorporation: Save The Time Spent On Creating A New Corporation

When you create corporation there are many advantages like the protection of your personal assets, lower tax rates and obtaining financing through the sale of your company's shares to expand faster. And you can structure the company just the way you want to.

So the question is, create corporation or buy incorporation for an offshore company? No doubt create corporation is an attractive option.

It is said that 'time is money', and the popular assumption is that if you buy incorporation it will save money since it will be quicker than 'create corporation'.Not always so.

First, the investor will normally be charged for the offshore companies for sale from the date it was incorporated and kept on the 'shelf'. Second for an offshore incorporation, the investor's due diligence procedure, including the various documents he or she have to provide, still needs to be done. This second step takes the most time since the actual incorporation takes but a few days. [I have one investor who started his incorporation process in April 2007 and completed his documents by July 2008!].

But this step is not necessary if the investor has done his due diligence with the particular resources for incorporation offshore company agent from where he is planning to buy incorporation.

Creating a local corporation takes time and effort. If you want to incorporate the company yourself, you will need to read the material on incorporation, do all the paperwork, hire an attorney or lawyer, prepare the rules & regulations of the new corporation, file the documents and wait for the bureaucratic process to finish.

Your papers may need to be redone if the information is not complete as desired by the relevant authority. So the other choice is to buy incorporation. You can buy incorporation from one of the two types:

1. For which all paper work has been done and approved and is an officially valid corporation, BUT hasn't been used before.

Such corporations are readily available, both locally and internationally, and have been created by the company incorporation agents to ease the investor's life.

However, please check to see that the company does not have a history, is legally registered with the proper government documents, and that the offshore registration agent you are buying from gives you all genuine documents.

When choosing to buy corporation, please also ensure that the company's structure, purpose and areas of doing business in its Articles of Association are similar to the type of business you are planning to start.

The other choice is that you buy a working corporation which has some assets, finances, board of directors and shareholders. A new investor needs to be careful when buying an ongoing business and maybe better of by create incorporation to plunge in to business, but step by step.

The risks are greater in one way. But on the other hand you will also be able to hire experienced staff who come with the knowledge and experience required to run the business. Of course this is presuming that your business plan is set, the market research has been done, and you are comfortable with the product and market combination.

Judging the appropriate value of the company is a complete different science or art. There are thousands of accountants and investment bakers who have perfected this skill and you will need to hire one of them in your city to get you the best deal.

An experienced negotiator will get you the best deal so it is utterly important that you be willing to pay him the commissions required. He will save you more than what he costs!

One way of getting information on the business, would be to meet and get acquainted with the present board of directors and shareholders of the company. Their views on problems and suggestions for the improvement of the corporation would be a great starting place.