I will buy a company immediately

I will buy a company, with this thought in mind, the future investor goes to an intermediary. There are many intermediaries who deal in the sale of ready-made companies. They meet the expectations of their clients. They have a wide range of companies for sale. The offer is very diverse. There are companies with a history and completely new ones, large and small, created almost on the spot, meeting the wishes of demanding customers.

I'll buy a company, but where? You can buy a company anywhere. Companies for sale are scattered all over the world and there is probably no place where you cannot do business. Offices mediating in purchase and sale transactions also offer their clients companies that they have established themselves. Others are thoroughly checked. An audit excludes the company's liabilities to creditors and tax authorities.

The range of brokers is very wide. It is difficult to even imagine which company, where and for how much you can buy until you take a closer look at the subject. Before a smart entrepreneur thinks - I will buy a company, one certainly already exists! So let's take a closer look at the basic criteria by which customers can choose.

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I will buy a company with active VAT and EU VAT

Active VAT companies are fully operational after the customer has purchased them. The buyer can carry out all activities almost immediately, including concluding contracts and issuing VAT invoices with the new company details. Such companies are fully registered, which means that they have a REGON (statistical number), NIP (tax identification number) and KRS (National Court Register) entries. Furthermore, they are registered as active entities in the VAT registers and EU VAT.

The sellers offering ready-made companies have also made sure that these companies submit their declarations on time. These are the VAT declarations and JPK_VAT files required by the tax authorities. Furthermore, these companies are “clean”, which means that they have not previously conducted any business activities. Therefore, they do not have any debts or other liabilities.

The share capital of the companies may vary. Usually, it is around 5,000.00 PLN (this amount can be changed) and shares in the articles of association to be distributed by the new buyer. The company also has specific PKD codes, which are reported to the National Court Register, specifying the type of business activity. They can be changed or removed with a separate application submitted to the National Court Register by the new owners.

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Purchase of a company without active VAT and EU VAT

Not every entrepreneur will be able to operate with VAT exemption. There are legal regulations governing these issues, in which the legislator has defined the rules for using exemptions and exclusions. The obligation to register a company subject to VAT depends on the amount of turnover and the type of activity carried out. In addition, there is a statutory catalog of goods and services whose sale excludes VAT exemption.

In 2020, the legislator set the VAT exemption limit at PLN 200,000 per year. Therefore, the entities entitled to benefit from the exemption are entrepreneurs whose turnover from taxed sales in 2019 did not exceed PLN 200,000.

There is one more condition for applying the exemption, which is the moment of starting a business. If the business is started during the tax year and the sales revenue does not exceed the specified threshold, the entrepreneur can run the business without being an active VAT payer.

It is worth noting that the amount of the limit is calculated in proportion to the period of running the business. The conclusion is obvious. To calculate the proportional amount of the limit entitling you to benefit from the VAT exemption, use the formula: 200,000 PLN × LD/365, where LD is the number of days of business activity remaining until the end of the year.

I will buy a company - an offshore company

Offshore companies are companies that do not operate in the country of their registered office. This relationship allows for a reduction in fiscal burdens under international regulations. A customer who wants to buy a company is aware of this and is willing to take advantage of such offers because he wants to significantly reduce his tax burden. Many business brokers offer such solutions and have companies located in many jurisdictions around the world. We are talking about such exotic places as the Dominican Republic, the Seychelles, Liberia, Gambia or the Marshall Islands.

Companies that are registered in a foreign country where they do not operate reduce their tax burden. There is another tax aspect to consider. Does the country where the company is registered have a double taxation agreement with the country where the company will be managed and where it will conduct business? For example, companies under Panamanian law are only accountable to the court in Panama. This means that no Polish authority can interfere with their activities.

Categories: companies for sale, looking for an investor, limited liability company (GmbH) for sale

//M.K.

Illustrative photo

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