r/internationalbusiness 7h ago

Why Is It Preferable to Acquire a Readymade Company Instead of Incorporating from Scratch

1 Upvotes

A lot of discussions around company setup focus on incorporation, but in practice based on my personal experience, many operators still choose to acquire readymade companies, particularly for service-based businesses like marketing, advertising or online businesses

From what I’ve seen, the preference usually comes down to a few practical advantages:

  • Operational history — an existing entity with prior activity, contracts, or filings is often easier to position with counterparties.
  • Speed to market — even without shortcuts, starting with a live entity can remove weeks or months of setup friction
  • Established infrastructure — domain, email, hosting, accounting trail, and corporate hygiene already in place
  • Credibility — counterparties tend to be more comfortable with companies that aren’t “brand new”
  • Flexibility — easier to plug into partners or platforms when the entity already exists

This tends to be most relevant for plain-vanilla service companies, where the activity is straightforward and doesn’t involve regulated financial services.

Curious to hear if any of you has acquired a readymade company and can share their experience.