Ready-made company participant in the electricity market: where to find and how to buy?
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Clients are often faced with the need to quickly enter the electricity or gas market. However, the license is not the requirement to carry out supply activities, and market entry is a long and complicated procedure.
Our company has qualified personnel specializing in comprehensive support of businessmen entering the electricity or gas market in Ukraine. Today, lawyers will share their secrets and tell you how to shorten the terms of obtaining a license and quickly join the business in the energy sector.
What is better: To get a license from scratch or buy a ready-made company?
In general, joining the electricity market is a lengthy process that requires quite thorough preparation.
The standard procedure will consist of the following steps:
1. Registration of an LLC (3 days);
2. Obtaining a license (2-3 weeks);
3. Inclusion in the market (on average one month):
- registration as a market member;
- registration as a member in electronic auctions;
- registration as a member in the day-ahead market;
- registration on the intraday market.
The optimal solution to quickly start or extend the activities of gas or electricity supply to the consumer is to buy a ready-made company with the appropriate license issued by the National Energy and Utilities Regulatory Commission (NEURC).
Over the past few years, our company has successfully sold more than one company with a license to supply gas or electricity to the consumer. Companies that we sell, did not carry out any activities, which means that they have a clean history, with the status of the VAT and a license for one of the activities:
- supply of electricity to the consumer;
- supply of natural gas.
All reporting to the NEURC is submitted in a timely manner, so you will not have any misunderstandings with the supervisory authority or bookkeeping in the future.
In some cases, electricity firms have an EIC code and a transmission agreement with Ukrenergo, as well as an off-balance sheet agreement, i.e. the first stage of inclusion in the market has been completed.
We also have companies with licenses for both electricity and gas, if you plan to work in two areas.
To summarize, it is worth noting that the purchase of a ready-made company significantly reduces the time for entering the market. Our experts can re-register the company for you and include you in the market in just one month, because we have a long time in the subject and will do everything on the first try, without unnecessary return of the documents for revision.
Note that the position of supervisory authorities to the documents provided is quite picky, and a complete correct list of required documents is difficult to find on your own, as well as the rules of their execution. A poor-quality copy, incorrect attestation, lack of annex to the agreement or incorrect filing of documents will put your inclusion on hold, and the time for revision will be delayed.
If deadlines are important to you in the electricity market inclusion procedure, choose only reliable professionals.
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Is it safe to buy a ready-made company?
The issue of “reliability” arises primarily for those who have decided to buy a ready-made company. Therefore, it is necessary to pay attention to the reliability of the data on the acquired company, its past and the conditions of the sale of corporate rights. Unfortunately, it is not uncommon to buy companies that do not have the appropriate licenses, which have a “questionable” past: existing debts, violations of law, unfulfilled measures of influence.
When registering a company for sale, we comply with all legal requirements for registration and licensing, submit all necessary reporting and, as a rule, we do not conduct any business operations.
Our specialists can provide you with a complete package of documents to be submitted for registration and licensing. Thus, you will be sure that the registration of the company and obtaining a license have been carried out officially, and the company has no violations of the current legislation.
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What is the procedure for transferring the company to the new owner?
First, we discuss with the Client all the important points, analyze all the necessary documents and agree on the contract of company re-registration, which must be certified by a notary.
If necessary (and if the client has an original passport and ID code) the deal can be done at the notary on the same day. In 2-3 business days, information about the change of members (founders) and director of the company is recorded in a unified state register – this completes the procedure of transferring the company to the new owner.
When buying a company with a license, you can change not only the name but also the address at which the activities will be performed. There are no requirements for education or experience of the director of such a company.
Please note! The electricity or gas market consists of several separate markets, which are called segments. They work independently, according to their own rules and prices.
You can choose the segments of the market, which will meet your particular interest. For example, if you are an electricity supplier and are going to make “short-term” agreements – buying today, selling tomorrow – then a day-ahead and intraday market entry would be sufficient.
If necessary, we can take you as a power supplier to the European market. We will prepare all the necessary documents to conclude an appropriate contract with Ukrenergo – an agreement on the participation in capacity allocation, which will give you access to a special New Auction Platform. Companies which concluded this agreement are not numerous in Ukraine, while we already have a successful case and the necessary experience.
Thanks to our lawyers, you are guaranteed to get:
- all issues resolved in one place, including obtaining any licenses or permits for the business;
- a ready-made website and staff training for further work in the electricity market;
- understanding of the market and beneficial options.
If you want to run a successful electricity or gas supply business, don’t hesitate to call us! We’ll make it fast and easy for your company to enter the gas and electricity market.
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