A shelf company is a registered as a company that hasn’t conducted business and holds no assets or liabilities. They are established for the purpose of selling registered companies onto someone else, so that they do not need to go through the timely process of registering a new company.
Essentially, the company is registered to sit on a ‘shelf’, waiting for a someone to buy it.
Why buy a ready-made shelf company?
- Saves you time – Time taken searching for a suitable name, registering for taxes, time taken during registration is saved when you buy an existing shelf company.
- Make money faster! – Once the long process of registration is bypassed, you can start operations immediately as the certificates and other company documents are ready. This enables your company to start making money faster.
- Do business with government – Most government offices when tendering frown upon new companies and give priority to older companies as they seem more established and less fraudulent.
- Ease of access to bank loans and credit – Establishing credit with line with banks, suppliers or investors is usually easier if the company is not newly registered
Credibility – A company that is a few years old gives clients and suppliers confidence to do business with it