Buying a VAT registered shelf company: your questions answered
Plain answers to the ten questions we are asked most often. If yours is not here, message us on WhatsApp and a person will reply.
What is a VAT registered shelf company?
A shelf company is a UK limited company that was incorporated and then left dormant, so it has never traded. Ours have also been registered for VAT with HMRC, which means the company already has a VAT number. When you buy one, the shares and directorship are transferred to you and you can invoice with VAT straight away.
Why buy one instead of registering my own company and applying for VAT?
Incorporating a company takes a day, but a new VAT registration can take weeks or months while HMRC checks the application, and some applications are refused. A shelf company already holds a VAT number, so you skip that wait and can trade, invoice and reclaim VAT from the first day.
Is buying a shelf company legal?
Yes. Buying the shares of an existing limited company is an ordinary share transfer under the Companies Act 2006. We record the transfer in the company registers, file the officer and PSC changes at Companies House, and you must then run the company in line with HMRC and Companies House rules like any other director.
What do I receive with the company?
The certificate of incorporation, memorandum and articles of association, the VAT registration details, completed company registers showing the previous and new officers, new share certificates, the stock transfer form and board resolutions. Where the company has an EORI number, UTR or PAYE reference, those are included too.
How long does the transfer take?
Once your identity checks are complete and payment has cleared, we prepare the transfer pack the same working day for orders placed before 4 pm. The Companies House update for the new director and person with significant control normally shows within 24 to 48 hours.
Can I change the company name or SIC code?
Yes. A change of name is filed at Companies House and usually approved within a day for electronic filings. SIC codes are updated on the next confirmation statement, which we file as part of the transfer so the company moves from dormant to trading.
Does the company come with a bank account?
No. Banks open accounts for the new owner, not the previous one, so the account is applied for in your name after the transfer. We can introduce you to business banking options, including accounts for applicants with imperfect credit histories.
Does the company have any debts or liabilities?
No. Every company we sell has been dormant since incorporation: no trading, no contracts, no employees and no borrowing. You receive confirmation of this with the transfer documents, and you can check the public filing history at Companies House before you buy.
What does it cost and how do I pay?
Prices are shown against each company and start at £2,000 plus VAT, including the transfer and document pack. Companies with an EORI number or additional registrations cost more. We accept bank transfer and cryptocurrency, and payment is made after the KYC checks have been passed.
What checks do you carry out, and what happens after the sale?
We verify the identity and address of every new director and shareholder and ask about the source of funds, in line with anti-money laundering rules. After the transfer we can continue to act for the company: registered office, nominee director, confirmation statements, VAT and EORI applications and bank introductions.