When you buy a shelf company South Africa enables your business to appear more trustworthy, and your suppliers and clients are likely to have more confidence in businesses with a longer operating history. Establishing business relationships with banks, banking institutions, and suppliers is usually top of the list when purchasing this type of company. Shelf Companies have already been set up correctly, and a simple change of the company officers is required to transfer ownership. Read about the advantages in more detail below:
Gain new contracts and suppliers
A Shelf Company is pre-registered with Companies House and already has a history. Anyone can access the Companies House website to see when a company was registered and its longevity.
How can a shelf company help with Contracts and Suppliers?
- When starting your business venture, securing contracts cannot be easy as you are classed as a new start-up. Some industries/government authorities insist a company must have been registered for a certain time before they allow tenders to be made. Therefore, a company with history would be extremely beneficial in these circumstances.
- It can be challenging to gain suppliers’ trust due to the company being recently registered. A shelf company with a history at Companies House would promote a more professional image and appear more trustworthy.
Easier to be approved for business banking
Banking is an essential part of the day-to-day running of your company. Any company requiring a professional image should have a business bank account.
How can a shelf company help to obtain a Bank Account?
- When approaching a bank for an account, credit card or business loan, it can be more favourable to have an aged company than a recently registered company.
- Banks may be inclined to see that investments made with an older company are a safer option than with a new company shown as newly registered with Companies House.
Improve new client confidence by showing that your business has a history
Every business needs clients, and clients who have confidence in the business are usually a major part of the company’s overall success.
How can a shelf company help boost Client Confidence?
- Research shows that clients like companies who can show longevity as they give the impression of being trustworthy and give confidence the business is experienced in its relevant field. When you buy shelf company South Africa will give the impression that the company has been around longer and therefore give the client the confidence to do business with you.
- Most companies promote anniversaries of their business, showing the importance of being around longer; new companies, unfortunately, do not give the same impression, and clients are less likely to have faith in them.
Save time compared to forming a company from scratch.
When starting your business venture, there is much to think about and time-consuming duties to complete. Setting up your company should be easy, simple and stress-free.
How can a shelf company help you to save time?
- The company is already registered at Companies House, so changing the officer details is the only requirement. Changing officer details can be done electronically, and it takes a few hours, quicker than the average 24 hours, to register a new company.
- You will have the confidence that the company has been set up correctly by an expert.
- You can begin trading with the company within a few hours of purchase, giving you one less factor to consider.
Always check that the company has been dormant since incorporation when you purchase a shelf company. Dormant companies do not have a bank account and cannot apply for loans. Always ask for confirmation of non-trading.