How to Protect Your Assets and With a Company Incorporated Years Ago
Aged companies are an often overlooked tool in the world of asset protection. An aged company is simply a company that was incorporated years previously so has an existing track record. There are many advantages of using aged companies not only to protect your assets but by using them for additional credibility that doesn’t exist with a newly incorporated company. Aged companies can be from any jurisdiction onshore or offshore. The key is that they should have been incorporated for at least 3 years.
So what are the uses for aged companies?
1. Where a Company Needs to have Been Around for Three Years to Bid for a Contract
In many cases to bid for contracts, a Company has to have been around for at least three years. If you want to be in a position to bid for those contracts an aged Company might fit the bill, especially if it has filed accounts. Many large companies and governments insist that companies bidding for contracts have been around for a minimum period of time, normally 3 years. Aged companies will be able to bid on these types of contracts.
2. If You Need to Transfer Assets ‘With Effect’ From an Earlier Date
Sometimes it will have been agreed to transfer assets out of one company and into another with effect from an earlier date. This could be for tax planning or accounting reasons. In this scenario, an aged company would be essential. It couldn’t have received the assets before it existed. It may be possible to backdate an asset transfer by many years by all the parties to the contract agreeing that the transfer took effect from the much earlier date, even although it was signed later. Aged companies are essential for this kind of complex transaction.
3. If You Want to Establish Credibility in the Marketplace
The longer a Company has been around the more credibility it will have in the market. Particularly if you’re selling online and your potential customers don’t know you personally. A company that’s been established for 5 years or 10 years is always going to be more credible than a brand new Company.
4. If You Need a Company With an Established Credit Rating
Sometimes your company will need an established credit rating. This could be to sign up for a new lease, get a business credit card or buy new vehicles. A Company with an established credit rating is perfect for those situations. It can help you get your business started and reduce the amount of cash you have to find personally or from other investors. Aged companies can fill this gap as they will often come with years of previous accounts and positive credit ratings.
5. Avoid Personal Guarantees With Aged Companies
Every new business owner has been there. You go to the bank for a loan or you have to sign a new lease and you’re asked for a personal guarantee. Personal guarantees expose your personal assets like your house or your car to seizure if your business fails. With an aged company, you’re much less likely to be asked to sign personal guarantees.
6. You Need to be Up and Running Quickly
The opportunity is here right now. There is not much time to form a new company, open a bank account, get a VAT number, and all the other things you need to do before you start trading. It’s possible to get an aged Company with a bank account, VAT number, and even merchant facilities already set up. You’re ready to go instantly.
7. A Sole Trader Converting to a Limited Company
Maybe you’ve traded under your own name for years and now you need the protection of limited liability. You don’t want it to sound new, after all, you’ve been in business for years. An aged Company can more accurately reflect how long you’ve been in business and the trust you deserve from new customers.
8. Take Advantage of Tax Losses with Aged Companies
Some aged companies will have incurred losses in prior years. If you have a profitable business it can be possible to offset those profits against the money that the aged company lost previously. Every country has different rules around this and it will require expert planning but it’s possible to save substantial amounts in tax by using aged companies for your profitable business.
9. The Ultimate Marketing Tool
Imagine being able to say that your business was established decades previously? That is the ultimate marketing tool. You can display the year of incorporation of your aged company on your website, letterheads, and brochures. Using your aged company as a marketing tool is a great advantage in any marketplace.
Of course, there are pitfalls too of using aged companies. You must be careful to ensure that there are no liabilities in the company. You don’t want your company to be liable for any debts incurred before you acquired it. You must also make sure that it’s in good standing with government agencies and check out the latest credit agency reports.
Here at Liberty Mundo we can take care of everything for you if you need an aged company. We can offer offshore and onshore companies across multiple jurisdictions. We have aged companies in stock ranging from 3 years old to 30 years old. We guarantee the good standing of all our aged companies and can help you get the kind of aged company that’s right for you.