Are you thinking of starting a limited company but want to avoid all the paperwork that comes with starting a company yourself or do you want to start with something finished? Then a warehouse company or history company may be something for you. In this article, we will find out the difference between a warehouse company and a history company to see which option would suit you best.
What is a warehouse? company?
A stock company is an “empty” limited liability company that is registered and has an organization number. But what is meant by “empty”? This means that no previous business has been conducted in the company. Warehouse companies are created so that they can then be resold and all administration that is added at the start-up of a limited company is then avoided from the ground up. You simply skip a couple of steps and you can often within a couple of hours get started with the business and start invoicing. The only thing you need to do when you buy a warehouse company is to change the business description and the business name that corresponds with the limited company you want to run and replace the board.
Just like when you register a limited company yourself, the company’s financial year starts on the day it was registered with the Swedish Companies Registration Office. Thus, it will not be the date that you take over and bought the limited company. A warehouse company follows the same rules as a “regular” limited company and a share capital of SEK 25,000 is required for a private warehouse company. The price for a stock company is usually the share capital + administration. Which is usually around SEK 5,000 – 10,000. You can therefore expect to pay at least SEK 30,000 when buying a stock company.
Advantages of warehousing companies
There are several reasons why you want to buy an already registered limited company. The main benefit is the time you save. You don’t have to wait for the Swedish Companies Registration Office to approve the registration application. Instead, you get access to the organization number directly and can start running your business. It is usually ready within the course of a working day. You also avoid all administration and many companies that sell just stock companies also offer help with choosing the board and collecting all the documents so you can easily sign at the end.
What is a history company?
A history company is just as it sounds, a limited company with history. The company has thus conducted operations before. The company is already registered with the Swedish Companies Registration Office, registered for f-tax and VAT with the Swedish Tax Agency and has completed bank accounts. Sometimes there is even a cash register. Just like a stock company, you do not have to spend a lot of time on an administration that is added when starting a limited company.
Advantages of history companies
The main reason why people choose to buy a history company is the creditworthiness that the company brings with it. It may also play a role when potential customers apply for the company and you see that operations have been conducted for several years compared to a completely new company. Another advantage as mentioned above is all the administration that you avoid as everything is already ready. There is simply a foundation to stand on directly and you do not have to build everything yourself.
A disadvantage of buying a history company can be the price. The price often varies depending on how the previous business has performed and the company’s creditworthiness. If things have gone well for the company before, the price for the company will be higher. As well as whether it includes a cash register. It is of utmost importance that you check the company’s history before writing any papers. There may be prior customer requirements or guarantees that must be met or unpaid fees or taxes that must be paid.
The difference between stock companies and history companies
As can be seen in the text above, the difference between a warehouse company and a history company is quite large. Both are quick alternatives to getting started with a limited company. But it is very different when it comes to previous activities. In order to be classified as a warehouse company, there must have been no previous activity in the company. History companies, on the other hand, have conducted operations for one or more years before. It, therefore, entails less risk of buying a warehouse company as there can be no “hidden” fees or taxes that need to be paid.
A history company is definitely a bigger risk, but if you are careful in the review, you can get more back. Having a good credit rating can be a great advantage and make it easier to get credit from suppliers or want to borrow money from the bank. You also get started quickly and do not have to wait for the processing time at the Swedish Companies Registration Office. If you feel that you want to get started quickly, a stock company can be a good alternative, but if you want an established company with a good credit rating, a history company can be a better alternative.
If you want to start a limited company from scratch, you can read more about this “Start a limited company”.
If you have more questions about warehouse companies or history companies, just get in touch with us at Simsons Redovisningsbyrå. We offer accounting and accounting services for limited companies and business consulting. Contact us by clicking the button below.