Starting a business is a significant step and presents a number of challenges for any budding entrepreneur. One of the first considerations concerns the way in which the company is to be launched. There are two options to choose from: a traditional start-up or the acquisition of a shelf company. Both methods have their advantages and disadvantages, but especially in today’s fast-paced business world, a shelf company can be an attractive alternative to the time-consuming and nerve-wracking process of founding a new company. In this article, we compare the two approaches and explain why the shelf company is often the better choice.
What is a shelf company?
A shelf company is a company that has already been established but is not yet operational and is offered for sale by specialised providers. These companies are fully legally constituted, entered in the commercial register and ready to be put into operation immediately. They are often limited liability companies (GmbH) or public limited companies (AG) that are simply waiting to be taken over by a new owner.
Advantages of the shelf company
- Significant time savingsThe biggest advantage of a shelf company is probably the considerable amount of time it saves. While it can take several weeks to months to set up a new company — from preparing the incorporation documents, notarisation, entry in the commercial register to opening a business account — a shelf company is ready for immediate use. For entrepreneurs who need to act quickly to capitalise on a business opportunity, this time saving is invaluable.
- Immediate ability to actWith the acquisition of a shelf company, business can begin immediately after the purchase. As all bureaucratic hurdles have already been overcome, nothing stands in the way of the operational start. This is particularly advantageous if business opportunities arise at short notice or if the market requires the company to take action without delay.
- Less bureaucratic effortFounding a new company can involve a lot of bureaucracy. Starting with the preparation of the articles of association, through coordination with the notary, to the lengthy waiting period for entry in the commercial register — all this costs time and nerves. With a shelf company, this entire formation process is eliminated as everything is already prepared. The entrepreneur can concentrate fully on business success instead of dealing with paperwork.
- Professional and established appearanceAnother advantage of the shelf company is that it is already entered in the commercial register and therefore gives an established and professional impression right from the start. This can be particularly helpful if the company wants to start doing business with partners or customers immediately. A company that is already registered looks more trustworthy and reputable than a brand new company that is still in the process of being founded.
- Facilitated lending: Banken und Kreditgeber sind oft zurückhaltender, wenn es darum geht, einer neu gegründeten Gesellschaft Kredite zu gewähren, da das Ausfallrisiko höher eingeschätzt wird. Eine Shelf Company hingegen, die bereits eine gewisse Zeit besteht – auch wenn sie nicht aktiv war – kann bei der Kreditvergabe von Vorteil sein. Die Bonität einer Shelf Company wird oft als stabiler angesehen, was den Zugang zu Finanzierung erleichtern kann.
Disadvantages of founding a new company
- Long waiting timesAs already mentioned, setting up a new company is a process that takes a long time. It can take weeks or even months from the drafting of the articles of association to the final registration. These waiting times can mean that business opportunities remain unrealised or the start of the company is unnecessarily delayed.
- Complexity and bureaucracyStarting a business involves a large number of bureaucratic requirements. Coordinating with various institutions, obtaining authorisations and fulfilling legal requirements can quickly become a challenge. This is a considerable disadvantage, especially for entrepreneurs who want to concentrate on their business idea.
- Increased risk of errorsWhen setting up a new company, it is easy to make mistakes, be it when drawing up the articles of association, choosing the right legal form or complying with legal requirements. These mistakes can be costly and further delay the start of the company.
Conclusion
Für viele Unternehmer stellt die Vorrats-GmbH oder Vorrats-UG eine überlegenswerte Alternative zur klassischen Neugründung eines Unternehmens dar. Die erheblichen Vorteile – insbesondere die Zeitersparnis, die sofortige Handlungsfähigkeit und der reduzierte bürokratische Aufwand – machen sie zu einer attraktiven Option, insbesondere in einem Umfeld, in dem Geschwindigkeit und Flexibilität entscheidend sein können. Während die Neugründung durchaus ihre Berechtigung hat, vor allem wenn spezifische Anforderungen an die Gesellschaft gestellt werden, ist die Shelf Company eine exzellente Wahl für alle, die schnell und effizient in die Geschäftswelt einsteigen möchten.