All you need to know about...

Buying a Limited Company

There are 3 different ways to buy a Limited Company:

  • Brand New

  • Off The Shelf

  • Already Traded

Buying a Limited Company "brand new"

Forming a new limited company in the UK has never been easier. Company Formation Agents have taken the hassle out of the formation process with quick and simple online processes in place of the standard Companies House paper forms.

Company Formation Agents can normally have the company formed within 3 working hours.

Cost depends on the agent but most are competitively priced when compared with the standard Companies House fees.

Buying a Limited Company "off the shelf"

Some Formation Agents set up limited companies for the sole purpose of selling them on at a later date. These are known as off the shelf companies or ready made companies and they should never have traded.

Once bought the Formation Agent would resign the existing company appointments and make your new appointments as well as update the company's registered office to the new address.

They should also complete a "stock transfer form" which represents the transfer of shares from the old shareholder to your new shareholder. This confirms the transfer of ownership of the company.

Buying a Limited Company that has already traded

You may come across the opportunity to buy an existing company that has traded in the past.

Once again, you can expect the current owners of the company to resign the current appointments and make your new appointments as well as update the registered office.

They should also complete a "stock transfer form" which represents the transfer of shares from the old shareholder to your new shareholder. This confirms the transfer of ownership of the company.

It is recommended you consult an accountant before buying a limited company that has already traded.

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Let's try it and see what happens.

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