Buying a shelf cc

Tinuva

Tinuva

The Magician
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I am interested in buying a shelf cc for various reasons.

Now I see there are different options available:
- With or without VAT number (looks like if the company ever made more than R1m in a tax year you have to register)
- Some say you can get BEE clearance (Really?! Sounds dodgy)

The advice I am looking for is, what should I look out for before going ahead and making a purchase. I don't know if you get scammers in this arena for one.
Then also important, what information should I ask for before going ahead to buy so that I can do check ups and just make sure everything is definitely 100% legit and legal.

Thank you in advance for any and all advice.
 
Why do you want to buy a shelf CC? What are your reasons?

Its cheaper and easier to just register your own PTY Ltd (CC's have been discontinued).
 
MightyQuin said:
As far as I know, after the new Company Act came into place, you cannot start a cc anymore.
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He can still buy one, "off the shelf", it'll just be a mission to modify anything associated with the name since the CIPC isn't really interested in dealing with CC's anymore.
 
As many others have already recommended, you may well be better off registering a new company instead of buying a shelf CC and inheriting all sorts of potential headaches (e.g. liabilities; unfair labour practices; employment contracts; regulatory non-compliance). It's possible (although certainly not easy) to conduct a thorough due diligence, but registering a new company would save you this time, effort, and expense.

If you did buy a shelf CC, I suspect that you probably would inherit any existing B-BBEE certificate. However, why anyone would bother getting a shelf CC certified is beyond me since it would almost certainly qualify as an Exempt Micro Enterprise by virtue of not trading. Furthermore, on the off chance that you bought a shelf CC that had been certified, the B-BBEE certificate wouldn't be worth very much since the new B-BBEE codes become mandatory from May next year.
 
Hi

A small tip, it is nearly impossible to register for VAT these days as you need X before registering but generally only get X after you already started trading. My suggestion is use an old CC, call me old fashioned but if you have a company you will need to work outs its score to confirm you dont need auditors.

If a shelf company is Vat registered its a bonus as, its not law to be vat registered unless you trade alot, but you might like the ability to claim inputs and well others buying from you might like to claim inputs also.
 
> if you have a company you will need to work outs its score to confirm you dont need auditors.

Above 350 PI score...which OP is not going to reach easily. Hell if it makes 50 I'll be surprised.
 
Dr Who said:
A small tip, it is nearly impossible to register for VAT these days as you need X before registering but generally only get X after you already started trading.
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You can register for VAT with an income of just R50,000 in a 12 month period. If you aren't generating R50,000 after 12 months then it's time to stop running your business and start looking for a job.

Dr Who said:
My suggestion is use an old CC, call me old fashioned but if you have a company you will need to work outs its score to confirm you dont need auditors.
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No, you don't, because private companies are exempt.

Dr Who said:
If a shelf company is Vat registered its a bonus
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Unless that same shelf company has run up all sorts of liabilities and penalties (e.g. for failing to comply with their VAT responsibilities. And while you can conduct a thorough due diligence, it will probably be quicker, easier, and cheaper to just register a new company, start trading, and register for VAT when you pass the R50K threshold.
 
Ok thank you for all the replies. Looks like in the end there is no real advantage using a CC anymore. I should probably have read up a bit more than I did before asking my original question here.
 
This is my take on it. I started trading in January 2020. I eventually registered a Pty t/a and recently tried to apply for a vat number. All I got was a rejection letter from SARS, even though my monthly turnover for 3 monthsof tradingunder the PTY was R105 000. This was all done via an accountant. Next week I will be looking at purchasing a shelf company with an existing vat number. I have already spend to much energy on a futile exercise. I am struggling to trade without a vat number. I have a vendor number with the government as well, but can't trade because they ask for a vat number every time. I don't yet need BEE as I am a micro business. This government just makes it difficult for the small guy.
 
De'ablo said:
This is my take on it. I started trading in January 2020. I eventually registered a Pty t/a and recently tried to apply for a vat number. All I got was a rejection letter from SARS, even though my monthly turnover for 3 monthsof tradingunder the PTY was R105 000. This was all done via an accountant. Next week I will be looking at purchasing a shelf company with an existing vat number. I have already spend to much energy on a futile exercise. I am struggling to trade without a vat number. I have a vendor number with the government as well, but can't trade because they ask for a vat number every time. I don't yet need BEE as I am a micro business. This government just makes it difficult for the small guy.
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I'm guessing you need a new accountant. Check your Private messages, I can assist you
 
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