What is a dormant company?
A dormant shell company is one not currently trading but fully up to date with its Companies House filings – essentially it is “ready to go”. All the paperwork and filings are in place and with a few modest adjustments we will tailor it to your business needs.
Once you have made the decision to buy a dormant company, we can get you up and running in hours, as well as arrange VAT registration and 12 months free banking if you require it.
What is the best dormant company to buy?
Vintage dormant companies create the best impression if you are looking to grow from a “standing start.” Vintage dormant companies have a much longer Companies House history than a recently registered shell company.
This can be very beneficial when looking to establish credit lines or if selling to larger organisations who may not be keen to do business with an apparent start up. By choosing a vintage dormant company you shorten the process of getting established, which can give you a flying start with your new venture. And remember, establishing credit and credibility translates into reducing your working capital needs, which is the key constraint on most businesses.
What are the benefits of buying a vintage dormant company?
1. Vintage dormant companies are legally well-established and often two or three years old. This can instill a sense of trust when it comes to how your company is viewed by investors or prospective clients. A company with a history is often viewed as a lower risk, as many companies struggle in the first few months with both suppliers and customers who see new entities as a possible financial risk. Therefore, having legal heritage can often work to your business advantage. When it comes to business, setting yourself up for success from the very start is important, and therefore buying a vintage dormant company is often part of the solution.
2. If you’re happy with the name of one of our vintage dormant companies, then our advice would be to commit to it, as it becomes your “face” for both customers and suppliers. Whilst you may be losing the chance to put your personal stamp on the company’s name, by acquiring an established company you avoid potential rejection by Companies House due to name similarities or other issues. Naming a company after yourself often becomes a point of regret for many business owners as you lose personal anonymity. Additionally, if a company is already Companies House registered, then it is unlikely that there would be any objections from third parties about your choice of company name.
3. The process of making a vintage dormant company your own is simple. We will update the registers to appoint you and any colleagues as new directors. If you do want to change the company name, we will arrange this for you too in a way that retains the historical legacy of the vintage company.
How can Paramount Company Formations help?
We are experts in all things business registration, and as such use a swift process that enables you to become the new owner of a dormant company.