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Buying a Company for its Name

 

Some ready made and off-the-shelf companies have very good, cool or sought after names. Business limited is an example of one.

Just as with domain names, people have been buying companies with the express purpose of reselling that company with its cool or good name for a profit at a later date.

The company with the sought after name may never have actually traded and therefore may not come with the traditional benefits of having a bank account and VAT registration.

Value of the Company

The value of the readymade company would solely be in its name. The price of such a company would be based on the perceived value to the purchaser and the seller. It is highly improbably that an accurate account of the benefits which would be derived from a specific good or cool off-the-shelf company name could be compiled. Some company formation agents have lists of names which can be purchased.

An alternative to paying a premium for a ready made company with a sought after name would be to register a company with a similar name. The rules governing similar company names would have to be adhered to however.

 
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