GNcareers, from Gulf News

Buying a running business

This allows you to have a venture up and running in no timeImage Credit: Supplied

When establishing a new business venture in the UAE, there is the option of purchasing a running business instead of setting up a new one from scratch. The former is much simpler. With the right support from industry professionals, you can have your business up and running within a week.

When purchasing an existing business, there is also the option to purchase a shelf company. This is an entity created for the sole purpose of being resold to an entrepreneur looking to start trading in the UAE as quickly as possible. The incorporation process takes only a few days as all that is involved is for the new business owner to sign the sales contract and pay the purchase price for the shares of the company.

There are several advantages to buying a running business, the most significant being the speed a business can be set up. All necessary paperwork and permits will have already been curated and completed, bank accounts set up and business address established.

Another significant benefit is that there will be a level of credibility to an established business that a brand new business may not have, especially if the business has a good reputation and repeat clients who can vouch for it.

As with any business venture, it is vital to do a thorough research on a firm’s trading  history, credit score and current standing. Independent legal advice is a must to guide you on matters concerning the rights of employees and employer requirements.

Handy Hints

* Do due diligence and always seek legal advice

* Ready businesses have all the permits curated

* Reputation can make or break a business venture

Source: Nicholas Baker, Special to Classifieds

The writer is a freelancer