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An incorporated company is a separate legal entity. This entity can invest in other companies, get acquired, employ people etc. However, if the company is not incorporated, it means that the company is not in existence. Hence, a company which is not incorporated can neither be acquired nor can this unincorporated company invest i...
Wazzeer Professional Network
ProfessionalHow can a company acquire another company before it’s incorporation?
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Wazzeer Professional Network
ProfessionalAn incorporated company is a separate legal entity. This entity can invest in other companies, get acquired, employ people etc. However, if the company is not incorporated, it means that the company is not in existence. Hence, a company which is not incorporated can neither be acquired nor can this unincorporated company invest in any other company.
Hence a short answer for your question would be No. You cannot acquire a company which is not incorporated.
However, if I extrapolate your question and assume that you want to acquire the company which is in ideation stage and not yet incorporated, then the acquiring company can become a majority shareholder in this company during the process of incorporation only and in this way the to-be-acquired company will become a subsidiary of the acquiring company.
about 3 years ago
View answer
How can a company acquire another company before it’s incorporation?
-
Wazzeer Professional Network
ProfessionalAn incorporated company is a separate legal entity. This entity can invest in other companies, get acquired, employ people etc. However, if the company is not incorporated, it means that the company is not in existence. Hence, a company which is not incorporated can neither be acquired nor can this unincorporated company invest in any other company.
Hence a short answer for your question would be No. You cannot acquire a company which is not incorporated.
However, if I extrapolate your question and assume that you want to acquire the company which is in ideation stage and not yet incorporated, then the acquiring company can become a majority shareholder in this company during the process of incorporation only and in this way the to-be-acquired company will become a subsidiary of the acquiring company.
about 3 years ago
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