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Home Services Risks of Buying or Selling a Ready-Made Company in the UAE

Risks of Buying or Selling a Ready-Made Company in the UAE

Transactions with ready-made companies can speed up business launch but require thorough preparation and understanding of potential risks. Buyers and sellers face different threats: from bank account freezes to legal claims. MIRAD professionally accompanies such transactions, minimizing all risks.

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Risks for the Buyer

  • Illusion of quick access to a bank account — the bank conducts a repeated KYC, the account may be frozen or closed.
  • Legal and tax history — debts, fines, unfiled reports, legal disputes.
  • Limited scaling opportunities — free zone limits on employees, office, or types of activities.
  • Erroneous expectations regarding contracts and client base — assets do not always transfer automatically.
  • Sanctions and watchlist risks — the new owner undergoes compliance checks against international databases.

Risks for the Seller

  • Liability for past periods — debts and claims before the transaction remain with the seller.
  • Reputational risks — buyer's actions may reflect on the former owner.
  • Underestimation of business value — loss of profit without an independent assessment.
  • Errors in transaction documentation — lack of addendums and resolutions makes changes invalid.

How MIRAD Minimizes Risks

  • Conduct full due diligence of the company before the transaction.
  • Analyze the portfolio of the new owner and their risk profile.
  • Assist in updating the bank profile (KYC/AML).
  • Prepare SPA (sale and purchase agreement), addendums, protocols, and resolutions.
  • Advise on tax and reporting obligations of the parties.
Planning to Buy or Sell a Ready-Made Company?

MIRAD will conduct due diligence, prepare agreements, and update the bank profile — safely and professionally.

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HowTo: Safe Purchase of a Ready-Made Company

  1. Contact MIRAD for transaction analysis.
  2. We conduct legal and tax checks of the company.
  3. Prepare SPA and accompanying documentation.
  4. Coordinate changes with the registrar and bank.
  5. Update company profile and submit mandatory reports.

FAQ: Ready-Made Companies in the UAE

❓ Can I immediately use the bank account?
❌ No. The bank requires repeated compliance for the new owner.

❓ Who is responsible for debts before the transaction?
✅ The seller is responsible until re-registration.

❓ Does MIRAD conduct an independent valuation?
✅ Yes, we engage auditors to calculate a fair price.

❓ How long does it take to complete a transaction?
✅ Usually 2–4 weeks, including due diligence and registration of changes.

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