Buying an existing company in Slovenia? It is a bad idea!
Some businessmen, especially foreigners, who want to start a business in Slovenia, think that best option is buying an existing company. They think that they will benefit from it. They assume, they will avoid some procedures. The truth is different. There are many downsides of buying a company. In this article we will describe possible traps that you can step into when you are buying a company.
Buying an existing company – additional expenses
One of the first reasons reason why entrepreneurs decide on buying an existing company is to avoid expenses. Mostly they want to avoid depositing a starting capital. When registering an LTD company, the shareholder must deposit 7500€ of starting capital. Some think that with buying a company they can avoid this. That is not the case. The previous owner usually withdraws the starting capital. Only then they sell the company. To avoid penalties and the company being capitally inadequate, you will have to deposit the 7500€ after buying the company. That is a major downside as you already spent money on buying the company, the buying fee and for notary expenses.
Buying an existing company – possible hidden debts
When you are buying an existing company, you must also accept all previous debts. You can check some aspects of company business. But you can’t always check everything. In this case, the new owner would have to settle all existing debts. If you decide to open a new company in Slovenia, you can’t have problems of that kind. If you buy an existing company, you can have more expenses than you wanted. When you buy a company, you don’t always know what you will get. In other words, you are buying a cat in a bag.
Permits for workers out of EU
If you are buying an existing company in Slovenia, you can step into another trap. The company can have some limitations due to inappropriat business. There may be some penalties. Company you bought, may violated the regulations of Foreigners Act. In that case it can get prohibition of getting work and residence permit for foreigners. In other words, you can buy a company but then can’t hire non-EU citizens. Your main goal, for instance, is to do business in other EU countries. To get work and residence permit we strongly advise you to open a brand new company. This way, you will and have a clean start without unwanted problems.
Let Data help you to avoid these traps and register a new company for you.
Think twice before you buy an existing company! Firstly, we can provide you with the best support. Further, we will explain why we advise against buying an existing company. Moreover, opening a company in Slovenia is easier than you might think. It is wise to have good advisers at the start. Here at Data, we understand foreign businessmen. Our consultants will give you full support in the whole process of company registration. Dont wait! Call us. For all information write us on email@example.com or call us on +386 64 173 023 (Viber/WhatsApp). We advise you also to visit our Facebook and Instagram. You can sign up for free webinars on business in Slovenia.