Are you looking for a possibility to start a business in Slovenia? Is one of the options you are considering purchasing a shelf company? We will write a series of articles connected to the consequences of purchasing a shelf company.
First part of the series of articles: hidden costs of purchasing a shelf company
This is the first article and it will be connected to the hidden costs of the purchase. We will help you to understand that when purchasing a company, you do not only pay the price that the seller requests. There are also expenses connected to the transmission of ownership along with the capital inadequacy. Capital inadequacy means that the capital has been taken out of the company, which makes it unable to support itself. It is then the responsibility of the new owner to recapitalize the company.
Shelf company in Slovenia – cheap purchase, costly consequences
Most foreigners decide to purchase a shelf company to avoid the initial bureaucracy surrounding establishing a new company. They might also see the advantage of not having to submit the founding capital 7.500€ in the process of establishing a new company.
Purchasing a shelf company might seem cheap but can bring about costly consequences. When buying a shelf company, the previous owner usually takes back the deposited founding capital based on a loan agreement. When buying the shelf company, the new owner assumes the obligation to pay that debt of 7.500€. So when you purchase a company, it does not have any funds on its account. This means that you as a shareholder would have to loan your company money to cover the operating expenses.
Additionally, you have to do the process of transferring ownership at the notary’s office, which results in additional notary expenses for the process. The process at the notary will also require the presence of a court certified translator and a witnesses. Both of these would result in additional cost for you.
Shelf company in Slovenia – decide against buying a company and register a new LTD!
The process of purchasing a shelf company can be quite misleading and can result in higher costs. This is why we recommend establishing a new company instead.
We can assist you to obtain all necessary documents for company establishment. Data also helps to organize company registration at our One-Stop Shop and the meeting at the bank.
Our legal department can help you to understand what owning a company in Slovenia entails. They can help you to conduct business activities according to Slovene legislation.
Our department for foreign citizens will also help you to understand the correct way to do business immigration to Slovenia.
Next week: second part of our series of purchasing shelf companies
Tune in again next week to read our new article about purchasing shelf companies. It will cover the problems an entrepreneur might encounter if he would like to apply for the work and residence permit through a shelf company.
If you will need help with company establishment in Slovenia and move here, contact us! Write us an email to: [email protected]. You can also contact us via phone: +386 1 6006 270 or +386 40 530 718 (Viber, WhatsApp). You can also follow us on Facebook.