Frequently Asked Questions What is a shelf company? A shelf..
Added 2021-12-26 16:33:17 +0000 UTCFrequently Asked Questions
What is a shelf company?
A shelf company is a business that has been registered as a company but has never 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 process of registering a business themselves.
Why would someone buy a shelf company?
The process of registering a company used to be quite time consuming, so purchasing a shelf company was the best way to quickly acquire a registered company. However, it is becoming increasingly easy for business owners to register companies themselves. This means that shelf companies are rapidly becoming redundant.
What are the disadvantages of buying a shelf company?
As it is getting simpler, faster and more cost-effective to incorporate a new company, there are fewer benefits to purchasing a shelf company. This is because you will need to go through the process of transferring the company’s shares, changing the current directors, changing the company name and amending the company address. Therefore, it is generally easier these days to just register the company yourself.
