As an entrepreneur looking to enter the Croatian market, the process of setting up a company from scratch can be tedious. A shelf company is a popular solution in this situation. Also called a ready-made company or shelf corporation, this entity comes complete with the necessary features to conduct business, like a local bank account. For that reason, you don't have to wait to get your business going. A shelf company eliminates the registration incorporation procedures, which can be lengthy and daunting, especially for an inexperienced businessperson.
A shelf corporation is a registered company that hasn't been doing any business. Although the entity has a registered business name, it doesn't hold any assets or liabilities. Since the incorporation of enterprises can take a considerable time, company formation services, lawyers, and accountants form ready-to-use entities and put them 'on the shelf,' waiting for an interested party to buy them. So, when you purchase a shelf company in Croatia, you get an enterprise with a history to back up its existence, which gives it credibility. Shelf companies are available in different forms, allowing entrepreneurs to find the most suitable one.
Foreign entrepreneurs or businesses are the target markets for Croatian shelf corporations. When looking to start an enterprise in Croatia as a foreign national, you might not have time or adequate industry knowledge to go through the incorporation process smoothly. A tailor-made solution saves you the stress and time of jumping through all the hoops of getting a licensed company. You only have to factor in the duration of transferring the entity from its previous owners. Locals who want to leverage the benefits of shelf corporations can use this option, as well.
Company formation specialists can help with the documentation and whatever else that's necessary to buy a shelf company in Croatia. A ready-made corporation affords you several benefits that should make the acquisition worth it. Before choosing a shelf company, identify your business objectives to make sure the entity will make it easy to achieve them.
A foreign investor eyeing the Croatian market and considering buying a ready-made company has several advantages to look forward to.
Time-saving is the biggest motivation for acquiring a shelf company in Croatia. Since all the major details about the corporation are taken care of, you don't have to spend time working them out. Thus, operations can begin as soon as you complete the purchase.
Access to bank loans is another benefit of shelf corporations. The company has a history and a bank account, which are plus points when seeking a line of credit. Although it's not the only determining factor, financial institutions look at a company's age when evaluating it for loans.
A company with a traceable history stands a better chance of landing government contracts. In Croatia, businesses bidding for contracts need to be a particular age. Thus, an aged corporation ticks one of the boxes.
The credibility that a shelf company gives your business is a good reason to buy one. Relationships with clients, potential investors, suppliers and other industry players are easier to forge when operating an enterprise with a history.
If you are unfamiliar with company law and other elements of incorporation, a shelf company is a good idea. You can entrust the details for the company formation to an experienced expert and avoid any problems in the process.
Transferring a ready-made company isn't complicated. The Company Act in Croatia allows for the selection of directors once the transfer process is complete.
You have decided a ready-made business is right for you. What does this process involve?
• Begin by finding a company formation firm or solicitors for expert help in buying the most appropriate business for you.
• Inform the specialists about your requirements.
• The incorporation company requires your identification papers; submit your government ID or passport. All documentation must be notarized. A non-EU needs notarization by the Croatian consulate.
• Once you receive the proforma invoice, pay it early.
• The company formation agents will send you corporate documents to sign.
Croatia is an attractive business environment for many entrepreneurs, leading to many investors wanting to set up here. If you intend to start a company in the country fast, then a shelf company can make it less challenging than usual. Buying a ready-made company means forgoing the standard registration procedures. You get an enterprise tailored to your demands, enabling you to get down to business immediately after the ownership transfer is complete.
A ready-made company has no previous operations, making it easy to keep its record clean. Also, before a business is duly registered, it must comply with the necessary regulations. Nonetheless, do your due diligence before acquiring a shelf corporation. Verify that the enterprise doesn't have any debts or liabilities. Check for other legal problems that may be attached to a ready-made corp. When buying shelf companies, the best way to avoid risks is by working with reputable incorporation specialists in Croatia.
Since all the formalities regarding the incorporation are dealt with, it doesn't take long to own a shelf company in Croatia. You only have to wait for the transfer of ownership, which takes approximately a day. However, you might have to wait longer than that if you have to conduct due diligence on the business. Background checks and other verification procedures mean a longer waiting period. Still, it shouldn't take more than a couple of days, especially when working with professionals.
The Trade Register is responsible for registering all companies in Croatia. Therefore, a properly licensed shelf company will be on the provided list of companies. Local and foreign investors searching for ready-made solutions should check with this authority. Verifying the registration status of a shelf company ensures you don't have problems later. You should also hire experienced and professional company formation agents to handle the necessary details.
Entrepreneurs and investors, both local and foreign, have compelling reasons to consider doing business in Croatia. The country offers a stable economy, ease of running a business in various sectors and many opportunities across different industries. Business owners can also capitalise on the development potential the region offers. Picking between a ready-made company and starting a traditional one from scratch is a vital decision. Hence, investors must comprehend the distinction between the two types of corporations. The most apparent difference is the incorporation process. A shelf company in Croatia comes with all the papers ready. Conversely, a conventional business requires starting from the very first procedure. You must be sure to satisfy all the regulations, then deal with the tax registration, company name, seal, social security, bank account and other accounting matters.
The time it takes for the business to be operational is another difference. When you buy a ready-made company in Croatia, you are confident it can start functioning in a day or two. Given you don't have to worry about the hassle of registering the enterprise, you save time. Once the ownership is transferred to you, the business is ready to go. With a traditional company, whether it's a partnership, joint-stock or limited liability, you might have to wait several business days before it's ready. When you are determined to get the business going right away, maybe because of a lucrative opportunity, then a tailor-made corporation is a practical solution.
Shelf companies may be aged but don't have trading histories. For this reason, they shouldn't hold any liabilities or debts. Just the same, check a company's history before buying it to make sure everything is as required. If you are planning to invest in Croatia and need a registered business, a shelf company caters to various goals. It is an ideal solution if you don't have the time to meet the incorporation requirements.