How to buy a ready made company safely

1. Be clear about why you need it

Write down what the company must do in its first ninety days: sign a lease, bid for a tender, invoice an EU customer, hold shares. This decides the jurisdiction, the age and the add-ons you need.

2. Choose the jurisdiction before the company

Start from your customers and your bank, not from a tax headline. Our jurisdiction guide walks through the main factors.

3. Check the seller

• Do they ask for identification and source of funds? They should.
• Do they give a fixed written quotation before payment?
• Do they explain ongoing annual costs?
• Do they give you the company number so you can check the register yourself?

4. Verify the company

• Search the official register using the company number
• Confirm filings are up to date and accounts are dormant
• Check for charges, legal notices or previous names that suggest activity
• Ask for written confirmation that it never traded

5. Prepare your documents

Have a passport, recent proof of address, a short business description and source of funds information ready for every owner and director. This is what usually sets the pace of the whole transfer.

6. Read the sale agreement

It should identify the company, confirm non-trading status, list the documents you will receive and state the price and what it covers.

7. After completion

Check the public register shows you as director and owner, store the document pack safely, diarise the filing dates and apply for your bank account with a clear, honest description of the business.

Red flags

• No due diligence 'to keep things quick'
• Promises of guaranteed bank accounts or credit lines
• Claims that the company is 'tax free everywhere'
• Pressure to pay before you have the company details
• Payment requested to an unrelated personal account