Buying a ready-made LLC with an electronic signature quickly and easily

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Purchasing a limited liability company (LLC) is a fast and effective way to start a new business in a relatively short time or expand an existing business. The purchase of an existing company is now accelerated by several innovations, one of which is the possibility of signing incorporation documents with a qualified electronic signature. Thanks to the electronic signature, you no longer need to personally visit a notary or registry office in this case. In addition to saving time, you also save money on official certification of signatures. How does the process of purchasing an existing LLC work and how can you quickly and easily obtain a qualified electronic signature?

What is a ready-made LLC and what are the benefits of purchasing one?

In practice, the term ready-made LLC refers to a limited liability company that has already been established. These companies usually have no business history (so-called clean companies) and are established solely for the purpose of being sold. However, those interested in starting or expanding a business can also purchase another existing LLC that already has some business history and continue to develop such a business.

When buying any existing company, we recommend that buyers verify through various available sources whether the company truly has no liabilities

When buying a ready-made LLC or another existing company, you can change all the following details in one step, or keep the original company data.

The following changes to incorporation documents can usually be made at once, and in practice, entrepreneurs most often change:

• company name,
• business activities,
• registered office,
• shareholders and managing directors,
• method of representation by managing directors,
• appointment of procurators,
• share capital amount,
• other changes.

Advantages of buying a ready-made or other LLC that already has some business history:

• savings on fees to the Slovak Commercial Register,
• faster company registration,
• the possibility to continue existing business under an established brand,
• immediate VAT registration if the existing company is already a VAT payer.

The process of buying an existing LLC

1. First, the buyer finds a seller who owns an existing limited liability company.
2. The next step is to check the company, its status, receivables, and liabilities (Social Insurance Agency, health insurance companies, tax and customs office, and others). Even if the seller claims that the LLC is a ready-made company without any business history, it is good to verify this through available and relevant sources. Buying a company is quite an important life decision, and getting rid of it later can be a tough challenge even for experienced entrepreneurs. It is therefore better to prevent such a situation and always thoroughly check the company before purchase. If you are not sure you can do it on your own, it is always good to seek help from relevant professionals (accountants, auditors, lawyers, or other experts).
3. After agreeing on the sale and purchase, the buyer decides whether they want to change certain company data, which must then be amended in the relevant incorporation documents that form annexes to the proposal for registration of changes in the Slovak Commercial Register.

When buying an existing LLC, you will need the following documents:

• deed of foundation or articles of association,
• trade license,
• agreement on transfer of business shares,
• statutory declarations by the managing director and shareholder on the company’s status,
• confirmations from relevant authorities that the company has no arrears and is not subject to legal proceedings,
• extraordinary financial statements as of the current date,
• confirmation that the company’s bank account has been closed,
• confirmation that a tax return has been properly filed and tax license paid,
• list of concluded contracts and confirmation of their termination,
• company’s accounting records for possible inspection,
• other documents depending on the specific case.

Most annexes to the proposal for registration of changes in the Slovak Commercial Register require official verification of the person’s signature. If you own a qualified electronic signature, you can replace the officially certified signature on these documents with a qualified electronic signature. Save time on personal visits to offices and avoid certification fees.

How to quickly and easily obtain a qualified electronic signature?

A qualified electronic signature (often abbreviated as QES) brings several advantages in practice. It is a fast and efficient way of signing documents and eliminates the need for personal visits to many institutions and authorities. QES also ensures a high level of security, authenticity, and integrity of signed documents.

Did you know that…

… QES fully replaces the handwritten signature of the person who created it?

It is also important to note here that a qualified electronic signature can only be issued by a so-called certification authority, which is a company designated as a trusted service provider under the European eIDAS regulation and listed in the register of trusted providers.

Such a company is also BRAIN:IT, the operator of the online platform NFQES, where you can also obtain a qualified electronic signature.

Process of obtaining a QES:

1. Create a request for a qualified certificate at zone.nfqes.com.
2. Arrange an appointment for a personal visit to the certification authority. This personal visit is only necessary once, after which you can use the qualified electronic signature at will. Its renewal can be done online.
3. Present the required identity documents and pay the fee for the qualified certificate.
4. You will then receive your qualified electronic signature.
5. You can upload documents and start signing.

Sign the document with a single click and then download, send, or save it. The NFQES.com platform also allows users to sign multiple documents at once and distribute signed materials.

The price of a qualified electronic signature is €18 per year.

• Renewal of a QES for one additional year costs €16 (done online).

• Renewal of a QES for two additional years costs €28 (done online).

In our next blog article, you can read about everything you can handle with a qualified electronic signature also on the Slovensko.sk portal.

Conclusion

When purchasing an existing limited liability company, keep in mind that smooth and problem-free business or its beginning largely depends on the reliability and trustworthiness of the seller or intermediary of the LLC. Therefore, we always recommend thoroughly checking the company before purchase.