SHELF COMPANIES

A shelf company is a company that has been incorporated but has never actually traded or operated. Some key points about shelf companies:

• They are fully registered with all necessary registration documents/filings complete.
• No trading history, so they start with a “clean” financial record.
• Often sitting dormant, ready to be purchased and activated by new owners.
• Shelf companies can be bought quickly as an alternative to full incorporation from scratch.

So in summary – shelf companies are ready-made corporate vehicles designed for faster takeover/activation than a new registration.

What are the advantages?

Here are some key advantages of purchasing a shelf company:

• Speed – Can be acquired and begin trading much faster than a new incorporation taking weeks or months.
• Cost savings – Shelf companies can be cheaper than full formation and registration fees for a new company.
• Perceived legitimacy – Buying an existing company with registration history gives the impression of a more established business.
• Compliance headstart – Statutory paperwork and records are already set up initially by the shelf company’s creators.
• Retain company identity – Company name and number can often be maintained instead of changing on incorporation.
• Tax advantages – Losses incurred while dormant may be transferred, unused R&D tax relief carried forward.
• Low startup capitals – Shelf companies remove need for initial formation investment so trading can begin immediately.
• Flexibility – Assets can be adapted to suit new activities rather than sticking to shelf company’s original purpose.
• Simple transfers – Ownership transitions from seller to buyer are straightforward share purchase processes.

Requirements for registering a Private Limited Company

• Directors information – name(s), I.D/Passport Number, address.
• Shareholders information – name(s), address.
• Company addresses – physical, postal and email.